The Importance of Understanding and Monitoring Retirement Plan Fees and Expenses


Profit sharing plans, 401(k) plans, and other types of defined contribution plans have become the predominant type of retirement plan in U.S. businesses. As we all know, a participant’s benefit in a defined contribution plan is not a guaranteed amount but rather simply his or her vested account balance, that is, the vested portion of the contributions made on the participant’s behalf and the attributable earnings. This means that the fees and expenses in a profit sharing or 401(k) plan are of critical importance as they have a direct impact on participants’ ultimate retirement benefit.

In this Commentary, we will discuss the fiduciary duties under the Employee Retirement Income Security Act of 1974 with respect to fees and expenses, describe the more common compensation arrangements in the retirement plan industry today, and provide suggestions for defined contribution plan fiduciaries to monitor and evaluate their plans for compliance with the applicable legal standards.1

Please see full Commentary below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Butler Snow LLP | Attorney Advertising

Written by:


Butler Snow LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.