Why Construction Companies Can’t Afford to Ignore Their 401(k) Plans

Recently, I was working on a 401(k) Benchmarking & Analysis Report for a local construction company. During our review, we uncovered several deficiencies in their retirement plan. Some were small adjustments—but others were major issues that the Department of Labor (DOL) often targets during audits.

These problems weren’t just bad for the plan itself (like high fees and low participation rates)—they also increased the fiduciary liability of the plan sponsor and, most importantly, hurt the participants who rely on the plan to build their retirement future.

The good news? This company took action. They scheduled a meeting with us to start correcting these issues and strengthening their plan.

But that experience made me wonder: How many other construction companies are facing the same challenges?

What We Found in Local Construction Company 401(k) Plans

Curious, I reviewed a list of local construction-related businesses* to see how their 401(k) plans stacked up. The results shocked me: about 85% of the companies had similar issues. And we’re not just talking about small firms. These plans represented companies with assets from $2 million to $35+ million, and workforces ranging from 20 employees to over 1,000.

It’s surprising that such a large and vital industry—with a workforce that literally builds our communities—often places such a low emphasis on their 401(k) plans.

Common Pushback from Plan Sponsors

When I reach out to construction company plan sponsors as a retirement plan advisor, I often hear two common default responses:

• “We already have an advisor.”

• “We don’t have time.”

But here’s the reality:

1. If you already have an advisor, and these problems still exist, your advisor isn’t doing their job. That means you may be getting a false sense of security while your fiduciary risks are piling up.

2. If you don’t have time to review your 401(k) plan, chances are you’re also not spending enough time managing or administering it properly. The good news is, these responsibilities can be outsourced to experts like IFS—professionals with experience and a track record of working specifically with company retirement plans.

When Was the Last Time You Reviewed Your Plan?

401(k) plans are one of the most valuable benefits you can provide to your employees—and one of the easiest places for costly mistakes to hide. Many plan sponsors don’t realize they’re overpaying on fees, carrying unnecessary fiduciary risks, or offering employees a plan that doesn’t set them up for success.

So, ask yourself: When was the last time your 401(k) plan was reviewed by a retirement plan specialist? Chances are, you’d be surprised by the findings.

At Integrated Financial Solutions (IFS), we specialize in helping construction industry plan sponsors identify risks, reduce costs, improve participation, and—most importantly—deliver better retirement outcomes for employees.

Reach out to IFS today and discover what surprises your 401(k) plan may be hiding.

*This review included construction companies and related fields: building, materials, plumbing, trades, specialty services, architects, and engineers. Our review was based on the most recent 5500 filings and does not reflect any additional administrative or service issues.