Beginning in 2013, the kind folks at ERISA (the regulatory agency that oversees retirement plans) rolled out a whole host of new laws. Yet many plans we see have not yet done enough to bring their plans into compliance.
Many of the changes was revolved around fees. Mostly, trying to make fees fairly and plainly disclosed to participants. But also part of the changes was placing legal responsibility for an annual determination to ensure fees are ‘reasonable’ on the trustees and fiduciaries of plans.
What is a reasonable fee level for a retirement plan? That is the question we hear the most. The answer isn’t “the lowest cost available” but more “can your company justify the fees it is paying?” In other words, compared to other like-plans, are plan fees in line with averages? If not, you better have a good reason why not.
If you own or work for a business in Santa Rosa or Sonoma County and have questions about the fees in your 401(k) or 403(b) plan, give us a call. Here is a handy link to more on fees.