In a bundled approach to 401(k) plans, what is a potential benefit?

A bundled approach to 401(k) plans typically means that one provider offers a range of services that may include investment management, recordkeeping, and administrative support under a single contract. This integration can lead to streamlined service delivery, which is a significant advantage for employers.

Having all necessary services provided by one entity can simplify communication and coordination. It reduces the need for the employer to manage multiple vendors, which can save time and effort. Furthermore, it often leads to more efficient operations since the provider can coordinate between different aspects of the plan, such as compliance, reporting, and participant communication. This streamlined approach can ultimately enhance the experience for both employers and participants, making it easier to manage the retirement plan effectively.

Options suggesting increased complexity in management, higher fees for services, or an increased need for employer oversight contrast with the benefits of a bundled approach, as such an approach aims to reduce these burdens rather than increase them.