Have you recently conducted an “S.O.S.” (Second Opinion Service) for your company’s 401(k) Plan? If you’re a Business Owner, CFO or Controller, VP-Finance or VP-Human Resources, it is vital for you to get a second look for your plan.
Scrutiny of 401(k) Plan fees is at an all-time high. If the IRS or U.S. Department of Labor audits your 401(k) Plan – which has become more likely in recent years – then you must know the answers to these two questions (amongst others)**:
1) How much does your 401(k) Plan cost?
2) Have you deemed this cost reasonable?
Perhaps you do know how much it costs… great! But do you know how much your plan SHOULD cost? The most effective way to answer this question is to request an “S.O.S.” report from a trusted 401(k) Advisory Firm like Triune.
If you run a 401(k) for your business, your compliance risk is real and should not be ignored.
Think about it like this – how does your cellphone plan in 2019 compare to ten years ago? And regardless of your provider, how often have they contacted you in the last 10 years to offer a better plan for less money?
For most of you, the answer would be ZERO – wireless companies aren’t in the business of asking you to pay them less. The same can be said for 401(k) plan providers – which is why it’s recommended that YOU initiate the process of Benchmarking your 401(k) Plan with a simple S.O.S. Report.
Industry costs have decreased within the past 3 years due to several factors***:
· Your plan has likely grown
· Increased competition
· Shrinking margins within the 401k industry
· Better technology
· Consolidation of providers (mergers & partnerships)
One last “Pro Tip”: Be certain the firm you choose to conduct your S.O.S. operates as a Fiduciary, and is experienced in the field. We have found that many 401(k) Plans today are sold by “2-Plan Tony” – i.e. an advisor or broker who manages only two or three 401(k) Plans.
At Triune, we have a dedicated team who focuses solely on 401(k) Plan implementation and service. Learn more about Triune-managed 401(k) Plans here.