After last year’s ruling by the Supreme Court in Tibble vs. Edison International, lawsuits have been brought against several large 401(k) plans, alleging that the plan fiduciaries have not done a good enough job of selecting the lowest-cost share classes available.
As Morningstar’s John Rekenthaler wrote in a recent article, participants in Anthem’s 401(k) plan have brought an especially ambitious suit, alleging that the plan’s funds are more expensive than they need be, despite the fact that they are mostly relatively low-cost Vanguard funds. It will be interesting to see how such cases play out in the next few years — and whether or not they bring any significant changes to the industry.
- The New 401(k) Argument: Vanguard Costs Too Much from John Rekenthaler
- The Best Financial Advice Fits on an Index Card from Chris Arnold
- Where’s the Payoff for Active Investing? from John Rekenthaler
- HSA + IRA Better than IRA Alone from Michael Kitces
- IRA Investors Avoiding the Panic Button from Vanguard
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