So, my main client (I'm 1099) just sent out an email with the details of the new 401K plan. Now, I'm not an employee, so this has no impact on me personally. But OOF those are some bad ER's. The S&P Index fund is 0.65% or something. 2045 target fund is a healthy 1.3%.
There appears to be a safe-harbor style match 100% on 3%, 50% on the next 2%, so if you defer 5%, you get 4% matched. Immediately vested.
Seems to accept traditional and Roth, but doesn't separately list after-tax. But it does have in-service withdrawals, up to 2 per 12 month period it says. Appears there is a $50 fee involved.
Company is not huge, but has something like 300 employees. Grew rapidly - the largest of 3 smaller companies acquired 2 others in short order in 2018 - the one I've been working with was at ~70 employees, although they use a lot of sub-contractors on my project in particular. At the all-hands they mentioned they were trying to grow even more rapidly and wanted to get away from 1099 deals (this could impact me, although I'm inclined to tell them to shove it if they want to try and force me into W-2 at the next renewal).
Anyway, I was thinking of sending a "dude, wtf with this 401K?" email, but I probably shouldn't. I know it isn't the worst 401K ever, but the ERs collectively have me pro-actively thinking what my demands would be if it is a W-2 or bust offer come March.
