A Look at 401(k) Plan Fees: Where Can I Get My Plan's Information?
If you have questions about the fees and expenses charged to your 401(k) plan, review the documents noted below or contact your plan administrator. The following information is available from your plan.
If you direct the investments in your account, your plan will provide information about your rights and responsibilities under the plan related to directing your investments. This includes plan and investment-related information, including information about fees and expenses that you need to make informed decisions about the management of your account. The investment-related information is provided in a format, such as a chart, that allows for comparison among the plan's investment options. The plan should provide this information before you can direct investments for the first time and annually thereafter. You also will receive a statement with information on fees and expenses for administrative or individual services actually paid from your individual account at least quarterly. This statement does not include charges paid indirectly from the investment options you have chosen.
You may receive a model chart. It includes performance data for each investment option over 1, 5, and 10 years; returns of an appropriate broad-based securities market index (referred to as a benchmark) over these same time periods for comparison; and fee and expense information on the costs of running each investment option (expense ratio) and service and shareholder-type fees (such as sales charges). The chart also includes a glossary to help you understand the investment options offered by your plan.
Your 401(k) plan's summary plan description (SPD) will tell you what the plan provides and how it operates. It may tell you the investments offered by your plan, the fees and expenses paid by the plan, and how those expenses are allocated among plan participants. A copy of the SPD is furnished to participants when they join a plan and then every 5 years if there are material modifications or every 10 years if there is no modification.
The plan's annual report (Form 5500 series) contains information regarding the plan's assets, liabilities, income, and expenses and shows the aggregate administrative fees and other expenses paid by the plan. However, it will not show expenses deducted from investment results or fees and expenses paid by your individual account. In general, the summary annual report, which summarizes the annual report information, is distributed each year.
You also may request copies of prospectuses or similar documents from your plan, as well as financial statements provided to your plan, and share values for your plan's investment options with the valuation date. In addition, you may want to consult the business section of major daily newspapers, business and financial publications, rating services, the business librarian at the public library, or the Internet. These sources will provide information and help you compare the performance and expenses of your investment options with other investments outside of your 401(k) plan. If, after doing your own analysis, you have questions regarding the rates of return or fees of your plan's investment options, ask your plan administrator for an explanation.
U.S. Department of Labor. (n.d.). A look at 401(k) plan fees. Retrieved October 19, 2016, from http://www.usa.gov/