In what way can age discrimination be assessed in a 401(k) plan?

Assessing age discrimination in a 401(k) plan is primarily focused on ensuring that the plan does not disproportionately favor one age group over another in terms of contributions and benefits. Analyzing contribution amounts across age groups reveals whether certain age brackets are receiving less favorable treatment, which can be an indicator of age discrimination.

When contributions are compared across different age groups, it becomes possible to identify any disparities that may exist. For instance, if younger employees are contributing significantly less than older employees or are experiencing barriers to contributing at all, it could signal an issue with the plan’s design or incentives that could discriminate against younger participants.

The other options provided, while relevant to various aspects of plan administration, do not directly assess age discrimination. Reviewing investment performance histories focuses on how the investments are performing rather than on how the plan treats different age groups. Checking participant employment length is also irrelevant to age discrimination as it does not reflect the contributions or treatment based on age. Lastly, evaluating the diversity of investment options speaks to the variety available within the plan but does not address whether the plan discriminates based on age-related factors. Thus, analyzing contribution amounts is the most direct way to assess potential age discrimination within a 401(k) plan.