The information contained in this booklet, “A look at 401(k) Plan Fees“, answers some common questions about the fees and expenses that may be paid by your 401(k) plan. It highlights the most common fees and encourages you, as a 401(k) plan participant, to:
- Make informed investment decisions;
- Consider fees as one of several factors in your decision making;
- Compare all services received with the total cost; and
- Realize that cheaper is not necessarily better.
More and more employees are investing in their futures through 401(k) plans. Employees who participate in 401(k) plans assume responsibility for their retirement income by contributing part of their salary and, in many instances, by directing their own investments.
If you are among those who direct your investments, you will need to consider the investment objectives, the risk and return characteristics, and the performance over time of each investment option offered by your plan in order to make sound investment decisions. Fees and expenses are one of the factors that will affect your investment returns and will impact your retirement income.
Keep in mind, however, that this booklet is a simplified explanation of some common 401(k) fees. It is not a legal interpretation of the nation’s major retirement benefits protection law, the Employee Retirement Income Security Act (ERISA), or other laws, nor is this information intended to be investment advice.
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A look at 401(k) Plan Fees
This publication has been developed by the U.S. Department of Labor, Employee Benefits Security Administration
To view this and other EBSA publications, visit the agency’s Web site at: www.dol.gov/ebsa To order publications or to request assistance from a benefits advisor, contact EBSA electronically at: www.askebsa.dol.gov Or call toll free: 1-866-444-3272 This material will be made available in alternative format to persons with disabilities upon request:
Voice phone: (202) 693-8664
TTY: (202) 501-3911
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