Tag: 401k
Abstract State wage-payment laws, which forbid deductions from wages and salaries without the written permission of the employee, constituted a binding constraint on firms’ choices to adopt automatic enrollment in 401(k) plans prior to 2006. Since the passage of the Pension Protection Act of 2006, which clarified the legality of auto-enroll plans and superseded thes…
The brief’s key findings are: 401(k) plan expenses include both explicit fees and trading costs. Trading costs are a major expense for actively-managed funds. While such funds do not necessarily produce higher net returns, they do handle the bulk of 401(k) equities. Without giving up active management, shifting to exchange-traded funds and commingled trusts can…
