> You way involves the employer making a deduction from each paycheck and then making an ACH payment for each employee to the institution of the employee's choosing.
The other replyer already addressed the fact that companies already do this with paychecks.
With what I'm proposing, the only reason a company would even need to deal with an employee's 401K information is if they do contribution matching (which many companies don't). It's up to the individual to make the contributions from their paycheck and claim a deduction on their tax return at the end of the year.
> when buying mutual funds through your 401(k) you aren't charged any fees for trading.
They make up for that with high management fees.
> Through my IRAs at least I get charged a commission for every purchase
Not all brokerages do that. In any case, here it's a fee you're choosing to pay presumably because you get other things from that financial firm that you value. With a 401K your tax break is being held hostage in return for whatever fees your employer managed to negotiate on your behalf.
