Everyone in the 401(k) business loves to focus on the dramatic stuff. We talk about lawsuits that shake the industry, shocking excessivefee claims, fiduciary scandals that make headlines, and advisors who somehow think providing participant education is the same thing as providing fiduciary advice. But while everyone’s eyes are fixed on the shiny objects, the real danger to most retirement plans quietly hides in the weeds, waiting to strike. It’s not the fees. It’s not the investment lineup. And it’s not whether you chose the right targetdate fund vintage. It’s the compensation definition. Not exactly the plot twist of a summer blockbuster, I know. But if Hollywood ever made a disaster movie about retirement plans, and who wouldn’t want to see “401(k): The Reckoning” starring Dwayne Johnson and Meryl Streep as dueling ERISA litigators, the villain wouldn’t be a cyber-hacker or a corrupt TPA.
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