Hidden 401(k) Fees Hurt Workers
Do you know how much you are paying in fees for your 401(k) plan? Most people don't.
It turns out that many plans have multiple layers of fees that are not disclosed to participants. Over the course of a working lifetime, the impact of fees can be astounding.
Since sponsoring companies are responsible for negotiating the terms of these benefits, the terms can often be beneficial to the employer but not so advantageous to the employee. One of the most egregious misuses of employee funds is known as revenue sharing, where the retirement plan provider may rebate some fees to the employer sponsoring the plan. Thus, some of the company expenses are paid by fees from the employee 401(k) plan.
Now, many legislators in Congress are calling for greater transparency in 401(k) plans. To learn more about fees in 401(k), plans and how harmful these fees can be to your retirement plans, click here to read an article from Bloomberg News.
It turns out that many plans have multiple layers of fees that are not disclosed to participants. Over the course of a working lifetime, the impact of fees can be astounding.
Since sponsoring companies are responsible for negotiating the terms of these benefits, the terms can often be beneficial to the employer but not so advantageous to the employee. One of the most egregious misuses of employee funds is known as revenue sharing, where the retirement plan provider may rebate some fees to the employer sponsoring the plan. Thus, some of the company expenses are paid by fees from the employee 401(k) plan.
Now, many legislators in Congress are calling for greater transparency in 401(k) plans. To learn more about fees in 401(k), plans and how harmful these fees can be to your retirement plans, click here to read an article from Bloomberg News.
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