Question

1) Describe and detail all of the fees/costs associated with a 401(k). write at least one paragraph.

Answer 1

The costs of investment management and other investment-related services are included in the money charges – usually the largest component of 401(k) fees. These charges are usually charged as an asset percentage. They can be divided into expense percentages, revenue and fixed costs. Properly managed funds are more costly than actively managed funds. Investment prices.

If it's a bank, someone manages your 401(k). No matter what. The fees cover general management, such as record keeping services, accounting, legal services, and trustees. It also helps to provide you with any extra resources, including customer support agents, educational workshops and online access to information on the plans. Some employers pay the fee for account holders, but you are generally paid a flat fee or a percentage of the total balance.

Like additional administrative charges, service charges are. They include features that you choose, like a 401(k) loan, 401(k) investment to an IRA, or financial consultation. When the participant takes advantage of a specific feature, they are charged separately. In order to investigate whether you charge a service, and if you do, how much it cost, before you do anything other than the basic buy and sell within your 401(k).