NORTHEASTERN PENNSYLVANIA – October, 2026
Technology Evolves. Shouldn’t the 401(k)?
Businesses routinely invest in new technology, equipment and operating systems to remain competitive. Yet many companies may still be operating retirement plans that have not been thoroughly reviewed or benchmarked in years.
Recent retirement legislation, including the SECURE Act of 2019 and SECURE 2.0 of 2022, has reshaped the retirement plan landscape and expanded opportunities for businesses and their employees. For employers with traditional 401(k) plans, these changes may create opportunities to potentially reduce costs, streamline administration and enhance retirement benefits.
According to Owen Edwards, Certified Financial Fiduciary® with Royal Fund Management, business owners should periodically evaluate whether their retirement plans continue to meet the needs of both the company and its employees.
“I believe every business owner with a 401(k) should have their plan benchmarked periodically,” said Edwards. “Not because they necessarily need to change plans, but because they have a responsibility to know what they’re paying, what their employees are receiving and whether their plan remains competitive.”
Could a Business Be Getting More for Less?
Among the options available to employers are Multiple Employer Plans (MEPs) and Pooled Employer Plans (PEPs). These arrangements allow participating businesses to join larger retirement plan structures and potentially benefit from economies of scale.
Depending on an employer’s existing plan and available alternatives, a MEP or PEP may provide several potential advantages, including:
- Potentially lower costs: Economies of scale may help reduce administrative and investment expenses for employers and employees.
- Reduced fiduciary responsibilities: Professional plan administrators and investment fiduciaries may assume specified responsibilities, allowing business owners to remain focused on operating their companies.
- Competitive investment options: Participants may gain access to professionally monitored investment lineups, ongoing investment reviews and potentially more cost-effective investment choices.
- Simplified plan administration: Professional support may assist with administrative functions, regulatory reporting and compliance-related responsibilities.
- Enhanced employee benefits: Competitive retirement plan services, investment options and educational resources may help employees pursue their long-term retirement goals.
A 401(k) Review Is About More Than Saving Money
Reviewing a retirement plan is not simply about determining whether a company can lower its costs. It is also an important part of understanding and meeting fiduciary responsibilities.
The Internal Revenue Service encourages employers to conduct regular retirement plan checkups, while the Department of Labor recommends establishing a formal process for evaluating plan service providers, fees and performance.
However, many business owners may not know how their current retirement plans compare with today’s available alternatives.
At a Minimum, Get a Benchmark
A business does not necessarily need to replace its existing 401(k) plan. However, understanding how the plan compares with current industry alternatives can provide valuable information for making informed decisions.
A comprehensive 401(k) benchmark can evaluate existing plan costs, investment options, administrative services and fiduciary responsibilities while comparing them with available alternatives and potential areas for improvement.
“At a minimum, get a benchmark. If nothing else, you’ll have it for compliance if you are audited” Edwards said.
Whether a business ultimately maintains its current plan, negotiates improvements with existing providers or explores alternatives such as a MEP or PEP, having current information can help business owners evaluate what may be most appropriate for their company and employees.
As retirement plan regulations and available options continue to evolve, periodically reviewing a company’s 401(k) can be an important component of responsible plan oversight.
After all, a retirement plan should continue to work effectively for both the business and its employees—not simply because it was the right choice when it was established, but because it remains competitive today.
About Owen Edwards
Owen Edwards, Certified Financial Fiduciary®, serves select clients throughout Pennsylvania and nationwide. Since 1996, Edwards is known for his educational, client-first approach and his belief in helping people gain clarity and control over their financial lives.
Learn more: http://OwenEdwardsInvestments.com/
Owen Edwards is an Investment Adviser Representative of and investment services offered through Royal Fund Management, LLC, an SEC Registered Adviser. 401(k) Maneuver is another business name for Royal Fund Management, LLC.
