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Uncovering Hidden 401k FeesQuestion Plan Sponsors Should Be Asking 1. What "class" of shares is held by my plan and are there other "classes" available to the plan? If other "classes" are available, what are the relative expenses paid by each? 2. Are shareholder servicing or sub-transfer agent fee being paid by the investment funds held by my plan? If so, who is getting them and are they subsidizing other costs? 3. Are 12b-1 fees being paid by the "class" of shares held by your plan (review the prospectus)? If so, who is getting them on your plan? 4. Can any investment option be replaced with a different share class with a lower 12b-1 fee? 5. If you are using a consultant to help you select and monitor your plan investment options, are they receiving any type of revenue or compensation directly from the investment managers? Do the investment managers purchase any services directly from the consultant? Ask if they are receiving benefits from 28(e) soft dollars from mutual funds within your plan? 6. Which fees and expenses are charged directly to the plan and which are imbedded in the expense ratio of the fund? 7. Do any of our plan investment options have any charges for early termination of our relationship with an investment option? 8. Does our plan request an annual comprehensive fee review from our service provider that discloses ALL revenue they receive as a result of our plan? 9. Have I documented my ongoing review of the fees paid by our plan? Learn more about 401k plan fees and expenses here. | ||||
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