Annual recurring plan fees are deducted from participant accounts on a quarterly basis. Specific amounts vary from plan to plan.
These fees may cover the plan’s administrative expenses and service provider fees including IRS 5500 filings, record-keeping, accounting, legal, customer service and contribution processing. They are categorized as the following: fixed admin fee, asset based fees, and activity fees.
All 401(k) plans have fees, including your old plan. Usually these fees consist of three parts:
The first two categories of fees are almost always part of the ongoing expenses paid out of the account balances of the plan. Historically, most providers have not completely disclosed these costs to the participants. While it may appear that your old plan had no fees, the fact is they were not disclosed to you. It is common practice for 401(k) plan providers to net fees against investment earnings making them difficult to monitor.
Slavic401k is proud of the fact that we disclose all fees as a line item dollar amount on participant statements and on the website. Your new plan is fully transparent, and in most cases, significantly less in cost compared to your old plan.
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