According to this article from Pensions & Investments, half of employers could not accurate indentify the fees charged to participants in their 401(k) plans.
As we’ve discussed in earlier posts, such as this one about 401(k) plans for small businesses, ERISA’s fiduciary provisions are expansive. It is hard to imagine a responsible fiduciary who has satisfied his duties of prudence and loyalty, but cannot identify the fees charged to participants in the 401(k) he administers.
We’ll talk more about fiduciary duties in later posts, but the headline is clear for this post: 401(k) fees are opaque and you aren’t the only one who is confused. The people in charge don’t understand either.