Employee Fiduciary

Nov 14, 2023

News provided by Share this article Share toX MOBILE, Ala., Nov. 14, 2023 /PRNewswire/ -- Employee Fiduciary, LLC, a leading provider of 401(k) recordkeeping and Third-Party Administration (TPA) services, has launched a new calculator to demonstrate the future value of 401(k) fees. This tool is designed to show retirement savers how much they can increase their savings in retirement by lowering their 401(k) fees today. "Few savers appreciate the cumulative effect of 401(k) fees in our experience. When a 401(k) account pays fees, the saver won't just miss their principal in retirement. They'll also miss the compound interest the payments would have earned had their amount remained invested instead. Our calculator demonstrates the significance of these losses. We think this information will motivate savers to lower their amount today," says Employee Fiduciary's President and CEO, Eric Droblyen, CPC, QPA. The calculator, available now at www.employeefiduciary.com/401k-fee-future-value-calculator , offers users a view of how fees can impact their retirement. Features of the calculator include: A user-friendly interface where individuals can adjust and customize their current age, retirement age, current account balance, annual contributions, and rate of return. A dynamic bar chart that displays projected balances at four different annual fee rates: 0.00%, 0.25%, 0.50%, and 1.00%. A breakdown showing the potential retirement balance for each fee scenario, with color coordination to match the bar chart for ease of understanding. "To make retirement as affordable as possible, workers must keep their 401(k) fees to a minimum throughout their working years," says Droblyen. He sees this calculator as a tool to help savers understand how much cost matters when saving for retirement. Earlier this year, Employee Fiduciary formally submitted a comment letter to the U.S. Department of Labor (DOL) in response to the department's Request for Information concerning the SECURE 2.0 Reporting and Disclosure requirements. In the letter, Droblyen addresses several key areas of concern, with a primary focus on the need for enhanced clarity and transparency in how 401(k) fees are presented to participants. This new calculator fits directly into Employee Fiduciary's goal of empowering 401(k) participants to understand the cumulative effect of fees and to advocate for lower fees. About Employee Fiduciary Employee Fiduciary, LLC, founded in 2004 and headquartered in Mobile, AL, is a leading provider of low-cost 401(k) plans for small to medium-sized businesses. The company's founding principles are transparent fees, personal care, and expert plan design. The company serves over 5,000 small businesses and approximately 145,000 participants nationwide. For more information about Employee Fiduciary, visit www.employeefiduciary.com , and follow us on Facebook ,  X , and   LinkedIn . For Additional Information