The tool is free to use and does not require any sort of registration, so advisers may use it whether or not they work with Lincoln Trust. It is designed for advisers as they assist current and prospective clients in reviewing their 401(k) plans. Plan sponsors may also find the comparison tool useful in fulfilling the due diligence functions required as part of the 408(b)2 disclosure regulations that took effect last year.
Users simply input the various cost components of the plans they want to compare, which they can acquire from individual plan providers. The plan comparison tool displays a side-by-side comparison of plan costs, as well as benchmark costs of comparable plans and information on the positive effect that reducing costs—particularly investment expenses—has on long-term retirement savings.
"With so many different fees attached to the typical 401(k) provided by mutual fund and insurance companies, it can be difficult to determine the total cost of maintaining a retirement plan," said Lincoln Trust Executive Vice President Tom Gonnella. "This tool makes it easier to assess total costs and allows for at-a-glance comparisons of up to three providers."
Gonnella noted that the plan comparison tool does not require users to consider a Lincoln Trust plan as one of the three options. "Users access the tool through our website, but they're not limited to our platform," he said.
Information about the Plan Comparison Tool can be obtained from https://comparison.lincolntrustco.com/.