Someone’s Making Fast Money off 401(k) Plans

Mutual fund companies are reaping immediate benefits of the 401(k) plans they oversee while investors are not, New York Times columnist Gretchen Morgenson reported Sunday.

Brent L. Glading, who used to work as an executive for Merrill Lynch and Dreyfus Funds, among other firms, told Morgenson that one mutual fund company was making $8 million in revenue from the $2 billion, 20,000-participant 401(k) plan it oversaw, while costs to run it ran $2 million.