Department of Labor's Extension Provides Additional Time to Compare 401(k) Fees

BALTIMORE, Feb. 21, 2012 /PRNewswire/ -- There is still time to review and compare your plan fees before the 408(b)(2) deadline on July 1, 2012.  "Employers should take advantage of the next couple of months to gather their 401k plan cost information and benchmark their fees," says Joseph Valletta, publisher of the 401k Averages Book.

"Our research shows a wide range of fees charged to 401k plans, with a significant difference between the low and high end of the universe," says Valletta. "However, when we take a closer look at the universe, we find that most 401k plan costs are grouped around the median."

According to the 401k Averages Book the range between the high and low total cost for a 50 participant plan with $2,500,000 in assets is 1.51%, while the range for the middle 50% of the universe is .31%. "That's a sizeable drop in the range of fees, but it's still important employers make sure their plan is not at the highest end of the universe," says David Huntley, publisher of the 401k Averages Book.

"With 408(b)(2) a reality and the responsibilities that go along with the regulations, employers will want to determine whether their plan costs are reasonable. The best way to determine if their costs are reasonable is by reviewing and comparing all their plan related expenses," says Huntley.

The report shows that the average investment cost for a 50 participant plan with $2,500,000 in assets is 1.38%, while the total bundled plan cost is 1.47%. In that scenario, the total bundled cost per participant is $734 for someone with a $50,000 balance.

About 401k Averages Book

Published since 1995, the 401k Averages Book (www.401ksource.com) is the only resource book available for non-biased, comparative 401k average cost information. It's designed to provide financial professionals and employers with essential 401k cost information needed to determine if their 401k plan costs are above or below average. The 12th Edition of the 401k Averages Book is available for $95. Advisors may purchase an annual individual Advisor License which allows them use the data in their client reports.  The 401k Averages Book can be ordered by calling (888) 401-3089 extension 1 or online at www.401ksource.com.

SOURCE 401k Averages Book