Back in August, my 401k provider sent a disclosure required by the new Department of Labor rules. It basically said they may deduct fees from my account and when they do, the amount would show up on the quarterly statement. It didn’t say how much those fees would be. See my previous post New 401k Fee Disclosure Does Not Disclose Admin Fees.
I received my quarterly statement covering July to September. This is the first statement covered by the new disclosure rules. I eagerly looked for admin fees on the statement.
To my delight, it showed that no fees were taken, at least none in this quarter.
The fees shown on the statement do not include the expense ratios of the investment options. Those were already disclosed in August.
Of course not having fees deducted in one quarter doesn’t necessarily mean I don’t pay admin fees period. If admin fees are deducted once a year at year end or in January, I will have to look for them in future statements.
401k plan providers have 45 days after the end of a quarter to issue the account statements. If you also received your statement for Q3, take a look and see how much admin fees were deducted from your account. If you haven’t received the statement yet, expect it before mid-November.
Whether you pay admin fees or not, it’s still a good idea to contribute the maximum allowed every year. According to the report from Vanguard How America Saves 2012, only 12% of the participants contribute the maximum. Put yourself in that 12%.
[Photo credit: Flickr user MPD01605]
Say No To Management Fees
If an advisor is charging you a percentage of your assets, you are paying 5-10x too much. Learn how to find an independent advisor, pay for advice, and only the advice.