Chapter 6
Paying Attention to Administrative Issues
IN THIS CHAPTER
Digging into the fees
Paying plan advisors
Finding information
Seeking changes to your plan
401(k) plans involve a lot of number crunching and record keeping. Someone has to keep track of how much money is in each person’s account and where the money is invested. Someone also has to produce your monthly, quarterly, or annual account statement. The plan needs to carry out federally required testing and reporting. These administrative functions need to be paid for, and guess who pays for them? You’re right, for most plans, you do.
Your employer has the option of paying all non-investment fees or having you pay them. You don’t usually pay them directly; instead, you pay them indirectly as charges to your account. In most instances you won’t see these charges because they’re buried by reducing your investment return, or they are deducted from participant accounts and appear on their account statements.
Figuring on the Fees
A 401(k) plan provides a service to you, and as with most services, it’s not free. You’re charged ...
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