Ron Lieber at the New York Times recently came out with an article that explores one of the most important problems with 401(k) plans: they can be expensive and plan participants have no idea how much their plans are costing them.
There are costs associated with with running a 401(k) plan–administrative costs for the plan, for example, are distinct and in addition to the expenses associated with the individual funds within the plan. These costs are sometimes added to the fund’s expense ratio in the creation of a share class specifically designed for retirement plans. These are usually “R” class shares.
The New York Timesarticle cites research by BrightScope, a firm that compiles data on 401(k) plan costs, that shows … Continue reading