Why 401(k) plans with index funds can benefit employees

The New York Times reports 401(k) plan administrators are reluctant to incorporate index funds into their 401(k) plans. This is because the fees generated by mutual funds provide more income for fund managers. This may be a violation of fiduciary responsibility however, and disadvantage employees. There are multiple benefits to 401(k) retirement plans with index fund options can offer, this article provides a few of those reasons.

Complete article link: http://www.helium.com/items/2157731-reasons-401k-retirment-plans-should-invest-in-index-funds