Brokerage Windows’ Future Unclear

Brokerage windows are relatively rare in most 401(k) plans. Out of the 686 plans surveyed by the Plan Sponsor Council of America in 2012, only 17% of them offered the option. Not So Transparent: Brokerage windows are supposed to provide plan participants with access to a greater variety of investments. However, they can be problematic because they typically have additional transaction costs the participant must pay. Employers have a fiduciary duty to make sure fees are no more than reasonable, and that investments are prudently selected for the plans.