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Still the people who work for small employers too often find themselves in plans offered by full service brokerage companies or insurance companies. They can be paying loads of as much as 5%. They can be trapped in plans with surrender charges if they try to move their funds.

As often as not on this board we hear from people who have complained (usually by polite letter) about the costs or investment choices offered in their small employer plan. As often as not, employee is asked to suggest a better custodian. And then the question comes here for suggestions.

The best low cost plan I am aware of is Principal Financial, and I doubt it is inexpensive. I was not aware that small plans from Vanguard or Fidelity are available. Usually people report here they are not interested in small plans.

If you are aware of low cost plans for small employers, please post them. That is a frequent question on this board.

We also hear that many companies are able to fund the costs of their 401k plans from matching funds that employees abandoned by leaving prior to vesting.
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