On Your Side
Leading the way on 401(k) feesGreg CarpenterMobile, Ala.
By Asa Fitch

(MONEY Magazine) – Ever wonder who pays for your 401(k) plan? No, sorry, not your employer. But how would you know? The true price of the typical 401(k) plan is hidden, partly because of revenue-sharing deals between the plan's mutual funds and its administrators. As a result, even most employers—who are supposed to negotiate the costs on your behalf—can't figure it out. Enter Employee Fiduciary, a small 401(k) provider that is taking an innovative approach to lowering costs. The strategy: Go paperless to save on administration expenses, allow plan sponsors to choose from the whole universe of funds and let everyone know up front what it all costs. The company charges $25 a year per participant (minimum: $1,500 a year) vs. the standard $125 per head. Any fees it gets from participating funds go to defray plan costs. CEO Greg Carpenter, who co-founded the firm in 2004, is betting there is a growing market for 401(k) plans that put employees' interests first: "People are mad as hell, and they're not going to take it anymore."

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.