group of diverse people at meeting table. (Photo: Shutterstock)

Fifty years ago, the 401(k) plan was created as a supplemental plan to a pension. They were initially used by large corporations and were never meant to be a one-size-fits-all solution for the entire US workforce.

Fast forward 50 years: Today most businesses can’t offer a 401(k) plan. The cost to offer a plan is too high, and there is an excessive amount of regulatory complexity, and the liability that comes with being a fiduciary. For employers that do make the leap to offer a 401(k), they are often faced with complex regulatory requirements, and realize after the fact, that they’re saddled with the hidden costs of audits and other fiduciary requirements.  And if you’re a small or mid-size employer, your employees will pay about double the cost to invest, since investment fees for smaller 401(k) plans are about double.

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and events.
  • Access to other award-winning ALM websites including and

Already have an account?


Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including and
  • Exclusive discounts on and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2023 ALM Global, LLC. All Rights Reserved.