January 6, 2014
The Truth About 401(k) Fees
Understand the serious toll that 401(k) plan fees can take on your finances.
Did you know that 401(k) plan administrators who run your employer's retirement plan typically charge fees between half a percent and 2 percent of your account balance each year?
Over time, these fees can take a serious toll. The U.S. Labor Department now requires fund administrators to provide breakdowns of their fees to employers, who must pass the information along to workers.
Investment companies must send a detailed statement about their plan's investment options, including fund performance and fees, and release the quarterly performance statements tied to your accounts.
These statements are a wake-up call to choose investment options more carefully.
Bottom line: Examine your 401(k) plan fees and seek out more cost-effective retirement investment funds.
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