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.
The information contained in the attached booklet 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
- Why consider fees?
- What are 401(k) plan fees and who pays for them?
- What fees are associated with my investment choices in a 401(k) plan?
- Where can I get information about the fees and expenses charged to my 401(k) plan account?
- What other factors might impact the fees and expenses of my 401(k) plan?
- Is there a checklist I can use to review my 401(k) plan’s fees?
- What other sources of information are available?