Monday, June 11, 2012
ABOUT THOSE 401(k) FEES . . .
1:43 PM | 
Posted by
pensionfinancialservices |
According to
a New York Times blog by Ann Carrns,
citing recent findings by a Government Accountability Office study, “many
employers are clueless about the fees they and their employees pay for
operation of their 401(k) plans.”
The G.A.O.
report, Carrns writes, was prepared for the House Committee on Education and
the Workforce and “is based, in part, on a survey of 365 administrators of
different 401(k) plans.”
So, whether
you’re an employer or employee, this immediately begs the question as to how
plan fees—whether the company itself has a clear or cloudy understanding of
them—impacts on retirement savings. One good piece of advice in the column is
for employees to bring the question of 401(k) fees up with their employer,
asking, for example, whether the retirement plan has revenue-sharing arrangements,
or investment-management fees, with an outside firm and how that might affect an
individual account.
This
“widespread misunderstanding” among many companies about a variety of 401(k)
fees—and whether it remains the same or can increase under certain conditions--
is a subject you can also take up with the experts at Pension Parameters Financial Services, Inc.
“In terms
of dollars, for employer and employee alike, fees aren’t chicken feed,” says its
president Kevin F. McCormack. “We value nothing greater than knowledge and
information, and we pride ourselves on letting our customers fully and clearly know
how fees work, how they apply, if at all, to various retirement plans and,
mostly, how they impact the bottom line.”
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