Quinn Curtis
Quinn Curtis

Quinn Curtis, Associate Professor of Law at the University of Virginia.  He talks with Les Sinclair about benefits and what to look out for when investing in a 401(k).  

Despite recent rules designed to make 401(k) plans friendlier to retirement savers, new research suggests that we’re still paying too much for investment options that are second rate.

“Overall, we find that investors in an average plan pay 86 basis points in fees in excess of low-cost index funds. We estimate in 16 percent of analyzed plans that fees are so high that, for a young employee, they consume the tax benefits of investing in a 401(k),” write Yale Law School professor Ian Ayres and University of Virginia associate law professor Quinn Curtis in a paper shared by the Social Science Research Network.

Any discussion of high fees in 401(k) plans is usually qualified by a statement that plans run by small employers are likely to cost more because they don’t enjoy economies of scale. But Ayres and Curtis reject that, saying, “We find substantial variation in total costs over plans of similar size.”

They also point to two other issues they say shortchange 401(k) savers:

Read more: http://www.bankrate.com/financing/retirement/protect-us-from-lousy-401k-plans/#ixzz2wVkjFprj
Follow us: @Bankrate on Twitter | Bankrate on Facebook

Latest Stories

in National

Police arrest gunman after fatal siege at Colorado abortion clinic


Police arrested a gunman who stormed a Planned Parenthood abortion clinic in Colorado Springs.

in Black Friday, Lifestyle, National

Black Friday crowds thin in subdued start to holiday shopping


America's annual Black Friday shopping extravaganza was short on fireworks this year.

in Sports

The weekend sports schedule


From the Associated Press, here’s a look at some of this weekend’s major sporting events. All times are listed in…

in Black Friday, Viral Videos

WATCH: Holiday parodies of the year’s biggest hits


From "Bad Blood" and "Watch Me," to "Uptown Funk," here are the year's hottest songs made fit for the holidays.

in Election, Local, Surrounding Counties, UVA, Virginia Assembly

Ex-House Speaker Tom Moss Dies

House of Delegates  052411

A Norfolk Democrat who was the last member of his party to be the Speaker of the House of Delegates died Thanksgiving Day in South Carolina.