IRA sticker shock, ACA rests on the shoulders of the young, and how obesity as a disease affects employers: 3 things you need to know this week | Segal Benz

Retirement plan fees bite into savings, but not the ones you think

For all the talk throughout the retirement plan industry and Congress over the dangers of excessive 401(k) fees, a new report from CNBC reminds us that more of Americans’ nest eggs are funded by IRAs than 401(k) plans. Not by much—$5.4 trillion in IRAs vs. $5.1 trillion, according to the Investment Company Institute. However, it’s worth noting that "IRAs, where 401(k) assets unfortunately end up, have as high if not even higher fees on average," Mercer Bullard, a law professor at the University of Mississippi School of Law, told the network.

Francis Vitagliano, research consultant at Boston College's Center for Retirement Research, adds: "The same light shined on 401(k) assets and fees should be directed at rollover IRAs."

The U.S. Government Accountability Office conducted a study this year that concluded the rollover market is, in the least, confusing to retirement plan participants, if not outright misleading.

So, one more item to add to your retirement plan communications—particularly for your near-retiree populations!

Don’t rock the boat: Report points to young Americans to keep ACA on even keel

A new Reuters/Ipsos poll of 1,053 uninsured Americans, accompanied by 51 detailed interviews, indicates that attracting young, healthy citizens to public exchanges may effectively offset the costs of covering older and sicker fellow Americans—making the Affordable Care Act, and maintaining the nation’s health care system overall, financially feasible.

About half of poll respondents in the age 18–34 demographic support ACA, and one-third say they are "very" or "somewhat" likely to buy insurance through their state's exchange.

If just half of that number actually does purchase coverage from an exchange, reaching the 2.7 million target goal set by the government should be a breeze, Reuters estimates.

This week’s hidden gem: Obesity classified as a disease could make employers sick

Obesity already is a weighty issue for employers—physically and financially. When the American Medical Association this year declared obesity as an official disease, the issue became an even more serious one for U.S. companies.

Speaking with Employee Benefit News, Jay Starkman, CEO of Engage PEO, details how the AMA’s decision could affect employers—especially when it comes to avoiding discrimination claims under the Americans with Disabilities Act or investigations from the Equal Employment Opportunities Commission.