Is Your Plan Acting In Your Best Interest?

Is Your Plan Acting In Your Best Interest?

It is important for 401k fiduciaries to monitor expenses because excessive fees and expenses can significantly reduce investment returns over time, which ultimately reduces the retirement savings of plan participants.

As fiduciaries, those responsible for overseeing the 401k plan have a legal obligation to act in the best interest of plan participants. This includes ensuring that the fees and expenses paid by the plan are reasonable and necessary for the services provided. By monitoring expenses, fiduciaries can identify and address any excessive fees, potential conflicts of interest, or other issues that could negatively impact the plan participants.

Additionally, monitoring expenses can help fiduciaries fulfill their duty of prudence, which requires them to act with the care, skill, and diligence of a prudent person in similar circumstances. By regularly reviewing fees and expenses, fiduciaries can ensure that the plan is being managed in a responsible and financially sound manner.

Overall, monitoring expenses is an essential part of fulfilling fiduciary responsibilities and ensuring that plan participants are receiving the best possible retirement savings outcomes.