This booklet is only the beginning of your educational process. You should ask questions and educate yourself about investments. Monitoring your current investment selections and reviewing the investment alternatives offered under your plan are part of a process that you, as an informed participant, will need to undertake continually.

Keep in mind that the law requires the fees charged to a 401(k) plan be "reasonable" rather than setting a specific level of fees that are permissible. Therefore, the reasonableness of fees must be determined in each case.

For additional information regarding the level of fees typically charged to 401(k) plans and 401(k) plan fees and expenses generally, see the Employee Benefits Security Administration's Study of 401(k) Plan Fees and Expenses [PDF].

In Conclusion...

When you consider the fees in your 401(k) plan and their impact on your retirement income, remember that all services have costs. If your employer has selected a bundled program of services and investments, compare all services received with the total cost.

Remember, too, that higher investment management fees do not necessarily mean better performance. Nor is cheaper necessarily better. Compare the net returns relative to the risks among available investment options.

And, finally, don't consider fees in a vacuum. They are only one part of the bigger picture including investment risk and returns and the extent and quality of services provided.

What Other Sources of Information are Available?

Listed below are some organizations and their Web sites, phone numbers and publications that can help in your research.

Employee Benefits Security Administration :

• Protect Your Pension: A Quick Reference Guide
• What You Should Know About Your Pension Rights
• Study of 401(k) Plan Fees and Expenses [PDF]
• Toll-Free Employee & Employer Hotline number, 1.866.444.EBSA (3272)