A 401(k) plan is a popular way to save for retirement, but each employer detไermines what to offer with their own plans. Different 401(k) plans can have different fees, m🔯atching contribution limits, and investment options.

To determine whether your 401(k) is competitive, you can compare its terms and offerings with other 401(k) terms. To do that, you can use 澳洲幸运5官方开奖结果体彩网:a website like BrightScope or Morningstar, which pr⛄ovide ratings for🍒 individual 401(k) plans, as well as on specific investment choices.

In this article, we’ll show you how to compare your 401(k) with others, and what factors you should review to assess your pl🌼an.

How to Compare 401(k) Plans

You 澳洲幸运5官方开奖结果体彩网:can compare your 401(k) plan with others at various different levels. For a𒉰 quick assessment, online tools such as will allow you to review how your plan compares with the average plan.

If you want to make a more in-depth comparison, you’ll need to collect some key information about your plan. Your 澳洲幸运5官方开奖结果体彩网:summary plan description (SPD) and annual report (Form 5500) can provide key information. If you don’t ꦐreceive this report automatically, you can request it from your company.

With thisᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚ information, you can conduct a review of administrative costs, fund choices and their expenses, and employer matching contributions. You’ll also learn about additional features, such as the ability to make after-tax Roth contributions.

You can then compare these options and costs against other 401(k) plans offered in your industry. Two main companies provide this information: and . You can 💦use either website to access informationꦑ on funds and see their rating. 

When comparing your 401(k) with others, you should look at four key benchmarks: matching contributions, fees, options, and investment quality. Here are these benchmarks in more detail.

Matching Contributions

Not all employers offer 澳洲幸运5官方开奖结果体彩网:matching contributions, but they can be an important benefit of your 401(k) plan. The average matching contribution limit is 4.5% of your salary, and the median matching contribution limit is 4.0%, according to a Vanguard study.

You should also look at the vesting schedule for any matchi🃏ng contributions. A vesting schedule is how long you’ll need to stay at the company before you have the rights to𝔉 the contributions.

Fees

Fees can vary significantly in 401(k) p𓆉lans and can impact how quickly you save for retirement. Even a difference of just 0.5% in plan fees can make a significant difference to how much money you sa🌳ve for retirement.

Plans can charge administrative fees in a number of ways, so it can be difficult to compare them. A good start, however, is to look at your Form 5500. On this form, you might see your fees listed as a dollar amount. You’ll need to divide that figure by the total assets in the plan to get your expense ratio.

Options

Another important aspect of your 401(k) plan is how much choice it gives you. Employers choose which investments to offer in their 401(k) plans, and they have a responsibility to offer “prudent” options to plan participants. Thu♉s, they tend t🐷o limit your investment options.

You can expect some basic minimum options for your 401(k), however. You should have access to well-diversified U.S. stock, foreign stock, and core bond funds. A 401(k) should also offer a range of target-date funds. Most employers don’t provide access to exotic, volatile investments for your 401(k), but it’s fair to expect a good mix of stock and bond funds.

Investment Quality

You should also assess the quality of investments available to you. You can use Morningstar’s rating system to see whether the funds you can buy for your 401(k) are of high quality, as indicated by a Morningstar Analyst gold rating. 

If you find that the funds are expensive or have performed poorly, you can ask your 401(k) plan administrator if they would consider adding more options.

The Bottom Line

Tools provided by Bloomberg, BrightScope, and Morningstar can help you to 澳洲幸运5官方开奖结果体彩网:compare your 401(k) with those offered b🐼y other companies in your sector. You should compare your plan across four main areas: matching contri🀅butions, fees, options, and investment quality.

If you find that your plan is more expensive or more limited than some others, you can talk to your plan administrator. If they are unwilling to make your plan more competitive, you can consider diverting some of your retirement investments into other instruments.