Significant amounts of participant balances are leaking out of 401k plans and not being replenished, with potentially disastrous results.
Included in this post are the six plan features that Brightscope says result in a 401k plan receiving a high ranking, along with my comments on each feature.
A number of 401k plans offer a self-directed brokerage account window option for plan participants. In order to be legal, the brokerage account window option has to be offered to all participants within the plan on a nondiscriminatory basis. In practice, few participants (less than 1% in most plans) tend to use the brokerage account window option. Is offering a brokerage window option a good idea? Most of the time, probably not. Find out why in this post.