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Subject:  Re: New law needed for 401k Date:  10/8/2007  1:08 PM
Author:  2gifts Number:  59493 of 88435

In terms of the cost to the company , I seriously doubt if it would be anything significant

I disagree. You said yourself that the problem you are having is that there is instability in your industry, and for whatever reason, people are frequently switching jobs, so the fees could very well add up quickly for the employer. Fees can be charged by the participant, and if that's that case and people who have worked there a year and have over $5000 in their plan decide to leave it there, then the employer will continue to be charged fees for all those accounts for people who are no longer employees.

Employers generally have waiting periods so that they can avoid that sort of churn with employees who leave after a very short time, and have an added incentive for people to want to stay.

You may think the fees are insignificant, but you're not the one paying the fees. If it bothers you so much, then stay longer at these jobs or just save that money in a taxable account.
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