SAN FRANCISCO (Feb. 6) -- The Online 401(k)(TM),
(www.theonline401k.com) the leading provider of full-service Web-based
401(k) plans for small and single-person businesses, today announced
that it is launching a formal, public crusade to combat the excessive,
opaque fee structure found in most 401(k) retirement plan offerings.
Chad Parks, CFP®, founder and CEO of The Online 401(k), believes that
the retirement plan industry has taken advantage of the average
participant by structuring plans to include unnecessary layers of fees
and failing to educate participants on how those fees may impact their
retirement savings. "The fact of the matter remains that almost all
participants in 401(k) plans do not know how to account for soft
dollar fees, 12b-1 fees, variable annuity wrap fees, sub-transfer
agent fees or investment management fees that might come out of their
assets that they have set aside for retirement," Parks states.
The Online 401(k) has plans for several events as part of its public
crusade against hidden fees. Among the events planned will be the
eventual rollout of its own rebate program, designed to offset the
administration costs of a 401(k) plan by rebating 12b-1 fees to its
clients. The Online 401(k) has already taken the first step in
combating the participant-unfriendly fee structure espoused by most of
the industry by charging a flat fee for service based on the number of
employees, rather than an asset-based fee.
"The Pension Protection Act of 2006 provided legislative direction on
improving the mechanics of 401(k) plan participation. The Online
401(k)'s goal is to topple the current fee structure within 401(k)
plans and, in the process, educate participants about how expenses can
erode their ability to accrue retirement savings over the long term,"
Parks says.
About The Online 401(k)
Small businesses interested in learning more about The Online
401(k)(TM) can request a quote at http://www.theonline401k.com and
automatically receive a customized proposal via e-mail. Small
businesses can easily establish their 401(k) plan, thanks to a
streamlined plan adoption process. The Online 401(k) offers a wide
variety of investments to choose from on multiple platforms. Once the
401(k) plan is set up, employees can access 401(k) and investment
education, select their investments and manage their individual 401(k)
accounts -- all from the convenience of their desktop.
For more information on The Online 401(k), visit www.theonline401k.com.
Media Contact
Joseph M. Anthony
Gregory | FCA Communications
for The Online 401(k)
610.642.8253, Ext. 139
27 W. Athens Ave., Suite 200
Ardmore, PA 19003
joea[at]gregoryfca.com
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