Chad Parks founded his company in 1999 with one goal in mind, to make 401(k) plans accessible to small businesses.
As the industry enters 2012, the CEO of The Online 401(k) believes there are five changes afoot in the 401(k) marketplace that will play a pivotal role in the industry moving forward.
Parks also predicts that 401(k) advice will be more plentiful in 2012. The Employee Benefits Security Administration issued a new regulation in October that gives smaller companies the opportunity to bundle investment advice as part of their 401(k) and IRA plans. The regulation will allow fiduciary investment advisors to receive compensation from investment vehicles they recommend if the investment they provide is based on a computer model that is certified as unbiased and applies generally to accepted investment theories, or the advisor is compensated on a “level-fee” basis, meaning the fee doesn’t vary based on the investments a participant selects.