That’s the question that retirement plan sponsors are asking their advisors. So exactly what is next for 401(k) plans? Last month I wrote that the 401(k) arms race is over, the proliferation of features that 401(k) providers have been doing over the last 25 years to stay competitive. Now, says the research done by Alliance Bernstein, the global asset management firm, leading plan sponsors are focusing on whether their plans are effectively meeting their goals. They’re asking themselves five core questions:
- Are we getting the best value for our money?
- Are we meeting all of our fiduciary responsibilities?
- Do we have the right investment lineup?
- Do we provide a communication program that works?
- Are we receiving the type of service we need?
I’ll add one more question plan sponsors are asking: "Are we effectively taking advantage of all the recent tax law changes?"
The answers are out there.
PIcture credit: "What’s Next", acrylic on canvas, available from Art by Wicks.