Advisors, Sponsors Cutting 401(k) Fees
Financial AdvisorMay 04, 2018
Plan sponsors, still feeling the pressure of the Department of Labor’s six-year-old fee disclosure rules and the threat of fee-related litigation, are continuing to place 401(k) fees under the microscope.
According to the “2018 Defined Contribution Trends Survey” from Callan, a consulting firm, 83% of plan sponsors calculated fees within the last year, 41% reduced their fees as a result of their fee review, and 60% are somewhat or very likely to conduct a fee study in 2018. Although reining in fees should be a good thing, it can’t be the end game and even modest fee trimming requires care.
John Faustino, AIFA®, PPC®, chief product and strategy officer for Fi360, weighs in on the full scope of factors advisors and plan sponsors should consider when evaluating their 401(k) plans.
