Are 401(k)s Too Complex?

Reader Comments
Back to blog

Comments from a retired benefit plan lawyer.
(1) The fee and compensation arrangements are really not that complicated. However, the employer must be aggressive with the plan's "provider" to learn what they are. For whatever reason, they mostly fail to do so.
(2) Around 20 years ago I contacted the Labor Department to find out their thinking on the prohibited transactions and fiduciary issues related to these sorts of arrangements. The officer I talked to, rather than becoming interested and asking for more information, became angry when I could not immediately refer him to then-existing literature on the issues. So much for the DOL.

C E Johnson of NC 12:36PM May 29, 2012