Dalbar - CFO 401(k) Buyers Guide

The Department of Labor has identified a variety of different fees that reduce the value of 401(k) investments. These fees are not usually displayed as a line item next to a specific service but are “hidden” in legal documents. In fact, the usual practice is to show balances after fees have been deducted so that they are not recognizable.

The following is a list of “hidden” fees that could be charged to your 401(k) plan. See Standard Fee Disclosure for more details.

Investment management fees paid indirectly by plan (e.g., mutual fund investment adviser management fees)
Sales loads (front end and deferred)
Redemption fees
Product termination fees (surrender charges, etc.)
Shareholder servicing fees
Sub-transfer agency fees
Finder’s fees/placement fees
Float revenue
Distribution (12b–1) fees
Recordkeeping fees
Account maintenance fees
Insurance mortality and expense charge
Other insurance wrap fees
“Soft dollar” commissions
Insurance brokerage commissions and fees
Securities brokerage commissions and fees

Action:

Ask all service providers and advisers to disclose any of these fees that are applicable to your plan. See CFO 401(k) Buyers Guide for providers who pay or receive these fees.

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