401(k) Plan Review Tool
Reviewing your company retirement plan every 1-2 years is an important part of making sure it’s working for your employees and your business. If it’s been a while since you have taken a close look at your retirement plan, now might be the time.
Reviewing your plan and providers can highlight if you’re paying higher costs than you need to, or if there are any gaps in the service you receive or in your employees’ retirement readiness.
This 9-question interactive quiz is an easy first step towards understanding if your current plan and providers are the best fit for your evolving business needs.
#1: How confident are you that you know all your 401(k) plan fees and fee categories?
#2: How do your employees choose their investment options?
#3: What are the average investment fund fees of the funds in your company's 401(k) plan? (also known as the expense ratio)
Tip: An expense ratio is the annual fee stated as a % of assets that you pay per investment.
#4: Have you compared your 401(k) plan to similar plans in the last three years?
Please select the areas of your 401(k) that were benchmarked:
#5: How are the funds selected, reviewed and updated for your 401(k) plan?
Tip: As your 401(k) plan assets grow, you can qualify for better-priced investments
5 of 9 questions complete, finish this page to get your 401(k) plan's score.
#6: What is the extent of your personal fiduciary responsibility and liability to the plan?
Tip: You are a fiduciary if you make decisions about how your 401(k) plan works. As a fiduciary, you are responsible for putting the best interests of your employees first, and you may be personally liable if the decisions made are not clearly in their best interests
#7: Which of the following types of fees are you paying?
#8: Do you get administrative help with your 401(k) plan?
#9: How available is the 401(k) plan adviser to your employees for 401(k)-related questions?
Tip: Customized employee education can improve plan engagement, helping your 401(k) plan pass compliance testing and making it more effective in helping employee retention
Your Final Score:
It’s no surprise that cost is a main factor when it comes to deciding to shop for a new 401(k) provider. But a lack of customer service is an even more widespread problem. Not all 401(k) plans and providers are created equally, as some providers offer self-service with low fees and no frills, while others offer more customized services and choices. It’s all about balancing service, fees, and employee support to find the perfect fit— the “right” plan and provider will vary from employer to employer. Check out our Small Business Shopping Report, which shares some of the common reasons and ways small business owners shop for a new 401(k) provider.
Your business 401(k) plan is working fairly well, but it looks like there are a few areas for improvement. It may be time for you to take a closer look at the features of your plan, the services you’re getting from your providers, and the fees you’re paying. A complete benchmark report could be the best bet for you to identify the parts of your plan that need a tune-up.
Your company’s 401(k) plan is in tip-top shape, with customized employer and employee services, clear and transparent fees, and fiduciary support so your personal liability is minimized. Keep up the good work! For additional educational content to help you manage and make the most of your business 401(k) plan, check out our 401(k) financial wellness survey. The survey report showcases some common retirement savings barriers that employees face, and some fixes you can implement to help them save.
If you have additional questions and would like to speak with a 401(k) specialist, please Contact UsTake the quiz again
Interested in more content like this?
Stay up to date on small business trends and the latest in 401(k).