Changes to Kidder Benefits 401k Platform

401KIf you maintain a 401k plan with Kidder Benefits on their platform you received an email yesterday regarding some changes coming to the plan.  KFG’s 401k plan is among the handful of client plans affected by these changes.

Kidder used a platform for record keeping and investments maintained by Expert Plan.  Expert Plan was acquired by Ascensus 18 months ago.  Up until now, there had been no change in Expert Plan’s business model because of the acquisition so most participants in the plan were unaware of the acquisition.

Just weeks ago Kidder received notification that Expert Plan will be changing their business model and eliminating the platform by November.  This means that current participants will be automatically moved to their new platform (Kidder will still be the administrator) or find a new platform provider.

The downside to staying with Expert Plan is that we will not have the same selection of investment managers or the same fee structure.  Apparently, Ascensus is raising fees by over double what we currently pay.

To make a long story short, if the total assets in your plan are over $200,000 we will have Kidder move your platform to TD Ameritrade.  If they are under $200,000 we will have Kidder move your plan to the Hancock platform.  Rick has spent the day analyzing all the possible combinations and he is confident this course of action results in the lowest overall cost to you going forward.  If you need more information, please call or email Rick.


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