ShareBuilder 401k Introduces New Tools to Help Companies Assess 401(k) Fees

New 401(k) Fee Disclosures Enable Employers to Determine if They're Paying Too Much in Fees

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Jun 18, 2012, 09:00 ET

SEATTLE, June 18, 2012 /PRNewswire/ -- With new federal laws requiring 401(k) providers to deliver transparent fee disclosure documents to plan sponsor companies by July 1, ShareBuilder 401k has introduced tools available at www.401kFeeSaver.com that make it easy for companies to calculate the fees they and their employees are paying, and determine whether or not those costs are reasonable.

"401(k) plan fees can have a major impact on an individual's ability to save for retirement, and at ShareBuilder 401k, we encourage employers to keep employee fees below one percent," said ShareBuilder 401k General Manager Stuart Robertson. "Now that sponsors will have a full accounting of their 401k fees with fee disclosure, many could be left wondering if they are paying too much. Our goal is to make it quick and easy for employers to review their company's 401(k) plan and determine if they're getting a good deal, or should consider a change."

ShareBuilder 401k now offers a free online "fee checker" that quickly and easily calculates a 401(k) plan's employee fee percentage. Available at www.401kFeeSaver.com, employers simply enter their plan's total assets (or average annual balance) and total investment product fees listed in their 401(k) plan fee disclosure document, and a quick estimate and assessment of their plan's fees is produced.

For a full custom cost comparison, employers can simply submit their fee disclosure documents to [email protected], and within 48 hours, ShareBuilder 401k will return a clear breakout of potential cost savings for both employer-paid and employee-paid costs on an annual basis and over a five-year horizon.

"Many all-in employee-based fees charged by 401(k) providers for small and midsize businesses are often over two percent and, in some cases, even higher," Robertson said. "The difference between one and two percent in fees may at first blush seem small, but over several decades, it can have a very significant impact on retirement savings."

Since 2005, ShareBuilder 401k has made all of its pricing readily available on its website, and the company began advocating for an industry benchmark of less than one percent for "all-in" employee-paid fees in 2007. ShareBuilder 401k has already updated its fee disclosures in line with the Department of Labor's sample and guidance for new plan sales, and is in the process of sending disclosures to clients in advance of the July 1 deadline.

ShareBuilder 401k is not a fund provider and takes an unbiased approach in the evaluation and selection of funds with a focus on low-expense, index based investments from the leading ETF providers such as Vanguard, iShares, SPDR and PowerShares to create a powerful line-up from which participants can choose, including five model portfolios.

All ShareBuilder 401k products offer the latest features including auto-enrollment, auto-re-balancing, Roth, signature-ready 5500s and much more. The plans are typically priced significantly less to start up and administer than traditional providers. Additionally, each plan is fully-supported with access to 401(k) consultants, customer success managers, implementation specialists and customer care for each participant.

About ShareBuilder 401k

ShareBuilder 401k provides easy-to-use, cost-efficient 401(k) retirement plans for small businesses ranging from the self-employed to those with 500 or more employees. ShareBuilder 401k is a leader in providing 100 percent index-based ETF investments (plus a money market) in 401(k) plans. ShareBuilder 401k offers a suite of on-demand services that make it simple for employers and employees to open and manage their retirement plans online at www.sharebuilder401k.com. ShareBuilder 401k plans provide market-efficient investments and model portfolios that make it easy for employees to select smart investments to help them get on track to meet their retirement goals. Customers can also take advantage of ShareBuilder 401k consultants, customer success managers, and customer care agents to receive assistance in choosing and managing their retirement benefits.

Investors should carefully consider the investment objectives, risks, charges and expenses of the fund before investing. This and other important information is contained in the prospectus (located at http://content.sharebuilder.com/MgdCon/Core/QuotesResearch/ETFProspectus/) which should be read carefully before investing.

Advisory services are provided by ShareBuilder Advisors, LLC, a registered investment advisor. ShareBuilder Advisors, LLC, is a subsidiary of ING Bank, fsb. ING Bank, fsb, and its subsidiaries, including ShareBuilder Corporation, have been acquired by Capital One Financial Corporation and are no longer affiliated with ING Groep N.V. ("ING"). The trademarks ING, ING DIRECT, ING Lion, and the ING Lion logo, alone or as a part of any trademark, logo, work or domain name are trademarks of ING and are used by permission.

401(k) plans are: Not FDIC insured – Not Bank guaranteed – May lose value

FOR MORE INFORMATION:
Alison Cahill Rouse
[email protected]
917-653-7592

SOURCE ShareBuilder 401k