Is There a Checklist I Can Use to Review My 401(k) Plan's Fees?

There are an array of investment options and services offered under today's 401(k) plans. While there is no easy way to calculate the fees and expenses paid by your 401(k) plan due to the number of variables involved, you can begin by asking yourself questions and, if you cannot find the answers, by asking your plan administrator. Answers to the following 10 questions will help in gathering information about the fees and expenses paid by your plan.

401(k) Fees Checklist

• What investment options are offered under your company's 401(k) plan?

• Do you have all available documentation about the investment choices under your plan and the fees charged to your plan?

• What types of investment education are available under your plan?

• What arrangement is used to provide services under your plan (i.e., are any or all of the services or investment alternatives provided by a single provider)?

• Do you and other participants use most or all of the optional services offered under your 401(k) plan, such as participant loan programs and insurance coverages?

• If administrative services are paid separately from investment management fees, are they paid for by the plan, your employer or are they shared?

• Are the investment options tracking an established market index or is there a higher level of investment management services being provided?

• Do any of the investment options under your plan include sales charges (such as loads or commissions)?

• Do any of the investment options under your plan include any fees related to specific investments, such as 12b-1 fees, insurance charges or surrender fees, and what do they cover?

• Does your plan offer any special funds or special classes of stock (generally sold to larger group investors)?