On the surface, the expense of administering accounts with small balances in a retirement plan may seem relatively immaterial and inexpensive. It’s only upon closer inspection, when plan sponsors realize that the number of small accounts in their plan is growing and that many of these accounts are connected with former employees, that the cumulative costs associated with a large number of these types of accounts begins to sink in. Not only do these accounts increase plan administrative expenses, but they may also expose plan sponsors to greater fiduciary responsibility and impair effective plan administration.