Bundled 401(k)s May Be Ripping Off Your Clients
A new DOL regulation will ratchet up the scrutiny of bundled 401(k) plan fees. You can help your plan sponsors—and potentially their plan participants—by guiding them through the pros and cons of bundled vs. unbundled services. In the process, you can also deepen your relationship with them.
Bundled services are a single company providing all 401(k) plan services including administration, recordkeeping, custody, investments, and investor education—packaged together as one fee. Traditionally these services have been positioned as one-stop shopping or 401k in a box, offering simplicity, brand names and low costs. It’s been reported that bundled services have around two-thirds of the small plan market.