• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

401k Fees

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

B

bwbarbieri

Guest
What is the name of your state?What is the name of your state?New Jersey (work in New York)

I have been trying to pay close attention to my 401k plan. I've learned enough to be able to account for all sources of income and losses in the Account Balance -- except one.

The plan includes "Plan Expenses" that I'm told are paid by the employer for 'recordkeeping'. The employer passes this expense on to employees. One time I called the company providing our 401k, and they were able to tell me an amount deducted for this 'recordkeeping' expense for the month of August. However, they also tell me they are not really allowed to tell me these expenses. Only my Plan Administrator can tell me.

When I talk to the Plan Administrator, he tells me it's impossible to know. How can it be impossible, if the amount is deducted from my personal account, and it seemed pretty easy for one counselor at the 401K company to tell me August's amount?

401k plan expenses can be an important consideration when investing. For example, see http://www.dol.gov/ebsa/publications/401k_employee.html Also, it seems there's some controversy regarding plan expenses information (see http://www.dol.gov/ebsa/pdf/401krept.pdf )

My question is this: Do participants in a 401k plan have a right to know all expenses deducted from their Account Balance? If so, and the Plan Administrator does not reveal these expenses, what options are open to partcipants?
 


Beth3

Senior Member
401(k) administration expenses are typically paid out of the general assets of the fund. I *think* that they are detailed on the SPD that all participants are mailed annually but don't quote me on that.

If you don't receive an exact answer to your questions here, you can give the federal DOL a call and ask.
 
B

bwbarbieri

Guest
The SPD from my company does not mention anything about fees/expenses

What I am looking for are specific expenses deducted from only my account. Not the total amount deducted from the Plan.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top