K plan: What Does “Free” Really Cost?
By: Wayne Hemrick Posted: Apr 22, 2011 ]]> In a 401(k) plan, your account balance will determine the amount of retirement income you will receive. Regardless of your position in the company, if you are a plan participant, these fees will have an impact – so it’s essential to have a clear understanding of what you are truly paying for with your retirement dollars. The information below helps define what are the most common retirement plan fees and is intended to encourage you, both as a 401(k) plan participant and plan sponsor, to: • Gain a clear understanding of fees and hidden costs • Compare all services received with the total cost • Recognize that “free” is not really free 401(k) Plan Costs There are several different types of fees that may apply to your plan, but they generally fall into two main categories: plan administration costs and investment expenses. Plan Administration Costs The everyday operation of a 401(k) plan involves fees for basic administrative services that are n
