#3. How have 401(k) plans become dangerous for retirement plan sponsors?
Until recently 401(k) plans were not generally thought of as a common problem that keeps employers awake at night, but with the current trend of lawsuits being filed against many retirement plan sponsors, all that changed. Employers are being sued by disgruntled employees for the set-up of their 401(k) retirement plan, more specifically, for the investment options being offered in the plan and its associated expenses.
Is Your 401(k) Retirement Plan Too Expensive?
Not only are retirement plan participants taking legal action against retirement plan sponsors, more often than not major news outlets are reporting on multiple judgements in favor of plan participants. The high monitoring fees associated with 401(k) plans and new laws requiring greater plan transparency are serving as a wake-up call to retirement plan sponsors that it may be time to make a change to their current 401(k) plan to reduce their liability. Chernoff Diamond’s innovative 401(k) investment approach is designed to lower fees and improve performance through index mutual fund-based managed accounts.
To learn more about the dangers of 401(k) plan sponsorship and ways to minimize your fiduciary liability, contact one of consultants today at firstname.lastname@example.org
Up Next in our Series: #4. What steps can 401(k) plan sponsors take?
This information is intended for educational purposes only and should not be construed as an offer to buy or sell any product or strategy. You should contact your Financial Advisor with questions regarding your individual circumstance.