Each Wednesday 401kBasics posts a new article in a weekly series called “Keep the Course”. This series is designed to give the average consumer information on how to keep their 401k plan on track! Your feedback or suggestions on future articles is welcome.
Over the next few weeks, 401kBasics will feature some of the most commonly asked questions.
“My retirement plan deducts fees directly from my account each month, is this allowed?
All 401(k) plans have fees, however not all of them are treated equally. Some plans have the majority of the fees paid by the plan sponsor, whereas others have fees deducted from participant accounts directly, and even other plans have indirect fees taken from the investment earnings. The fee structure is something that your plan sponsor agreed upon when establishing the plan.
In the past, these fees have been difficult to determine, however the DOL is cracking down on this area of retirement plans and is insisting that the fee structure for plans is more transparent. So, sadly, the answer is “yes”, you can have fees taken from your account.
This site is for entertainment purposes only. 401kBasics and it’s authors are not financial advisors and no information found on this site should be construed as financial advice.