The Economics of Providing 401(k) Plans: Services, Fees, and Expenses, 2010

I recently read a great article at via Please see below.

Key Findings:
» 401(k) plans are a complex employee benefit to maintain and administer, and they are subject to an array of rules and regulations. Employers offering 401(k) plans typically hire service providers to operate these plans, and these providers charge fees for their services.

» Employers and employees generally share the costs of operating 401(k) plans. As with any employee benefit, the employer typically determines how the costs will be shared.

» 401(k) investors in mutual funds tend to hold lower-cost funds with below-average portfolio turnover. Both characteristics help to keep down the costs of investing in mutual funds through 401(k) plans. Mutual funds are required by law to disclose a large amount of information, including information about fees and expenses and portfolio turnover. More than half of the $3.1 trillion in 401(k) assets at year-end 2010 was invested in mutual funds, primarily in stock funds.

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Integrity Financial Corporation’s flagship 401k client is the Association of Washington Business (AWB) in Olympia. AWB is Washington state’s premier advocate for the business community and is recognized as The State’s Chamber of Commerce. This plan has a BrightScope Rating of 76, placing it in the top 15% of all plans in its peer group.

Integrity Financial Corporation helps business owners and individuals build a financial legacy through well designed executive compensation and retirement plans. Our clients can expect to receive personalized service and expertise, built on a foundation of trust. To contact an advisor, please call us at 1.800.794.4015.

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