If you are a financial advisor, more assets under management equal more money. So that means a financial advisor working in their 401(k) plan space should do their best to making sure that their Plans get bigger n the asset department.<\/p>\n
That\u2019s why being concerned how much the fees that plan sponsors are paying for administration and investments are a concern. More money lost in high fees means less in the Plan.<\/p>\n
Financial advisors should look at other avenues such as my friends at SaverNation who reward plan sponsors with 401(k) contributions for making purchases online. It is a no brainer for plans sponsors to join SaverNattion.<\/p>\n
The other aspect if the new Internal Revenue Service guidance (Notice 2014-54) that will allow highly compensated employees who receive refunds because of a failed ADP deferral test to transfer those after tax refunds directly to a Roth IRA account within a 401(k) plan. There will be a few steps that a plan sponsor would have to take to make this work (such as having a Roth 401(k) feature to the Plan) in 2015, but it is a consideration.<\/p>\n
Automatic enrollment is another option. Safe harbor plan design and cross-tested allocations can work as well.<\/p>\n
An advisor who helps the plan sponsor grow assets can help them lower fees and end up getting more shekels for the advisor. That\u2019s a good deal.<\/p>\n
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