In our recent fee study, we found that 75% of small business plans pay hidden fees, costing their participants 0.42% of their account balance every year.
This bar graph shows the worst-offenders at charging hidden fees. If you use one of these providers, chance are you’re paying hidden fees.
Every dollar you pay in fees is a dollar that doesn’t get to grow.
Thanks to the power of compound interest, seemingly small 401(k) fees can cost you hundreds of thousands of dollars. You or your employees might have to work years longer to have enough to retire comfortably.
The documents we need change depending on your provider. Choose your provider from the dropdown for specific instructions on which documents you need and where to get them.
The Department of Labor requires your provider to furnish a document upon request that discloses all the fees your plan is paying. These documents can often be found in your provider’s employer website, but the easiest way to obtain it may be to simply call your customer service rep and ask for it.
This is a spreadsheet or document that shows the total amount of money invested in each fund for your company’s entire plan. Since the 408(b)(2) only discloses fees as percentages, we’ll need this to calculate exactly how much you’re paying your provider.
This report can be found in your provider’s employer website.
Your provider may not deliver third-party administration (TPA) services – one of the three administration services every 401(k) plan requires – for your plan. In these cases, an unrelated (usually local) TPA delivers these services. If you’re using an outside TPA who is billing you directly, we’ll need to factor their pricing into your fee calculation.
Please provide us with their service agreement or one of their invoices so we can factor in their fees.
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