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401(k) MEPs are not a panacea – Carosa

A substantial barrier makes it hard for a 401(k) MEP to achieve success -- and the SECURE Act did not remove that barrier.

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It’s so tempting to view 401(k) MEPs as a panacea. They aren’t. I know – I’m a survivor.

Before we get into that, let’s review the misconception many people have about the SECURE Act when it comes to the 401(k) MEP (or “PEP” if you prefer). Yes, the legislation did remove the much hated “one bad apple” rule. It did not, however, cure all that ails the MEP (see “Exclusive Interview: Ary Rosenbaum Says, Despite SECURE ACT, Some 401k MEPs Challenges Remain,” FiduciaryNews.com, January 22, 2020).

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Christopher Carosa

Christopher Carosa

Chris Carosa has been writing a weekly article and monthly column for BenefitsPRO online and BenefitsPRO Magazine since 2011 and is a nationally recognized award-winning writer, researcher and speaker. He’s written seven books, including From Cradle to Retire: The Child IRA; Hey! What’s My Number? – How to Increase the Odds You Will Retire in Comfort; A Pizza The Action: Everything I Ever Learned About Business I Learned By Working in a Pizza Stand at the Erie County Fair; and the widely acclaimed 401(k) Fiduciary Solutions. Carosa is also Chief Contributing Editor of the authoritative trade journal FiduciaryNews.com and publisher of the Mendon-Honeoye Falls-Lima Sentinel, a weekly community newspaper he founded in 1989. Currently serving as President of the National Society of Newspaper Columnists and with more than 1,000 articles published in various publications, he appears regularly in the national media. A “parallel” entrepreneur, he actively runs a handful of businesses, including a small boutique investment adviser, providing hands-on experience for his writing. A trained astrophysicist, he also holds an MBA and has been designated a Certified Trust and Financial Advisor. Share your thoughts and story ideas with him through Facebook (https://www.facebook.com/christophercarosa/)and Twitter (https://twitter.com/ChrisCarosa).

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