The Structure of 401(k) Fees

Source: Richard W. Kopcke, Francis Vitagliano, and Dan Muldoon, Center for Retirement Research at Boston College, Issue in Brief, IB# 9-3, February 2009

The brief’s key findings are:

    * 401(k) fees are complex and may not closely correspond to costs.
    * Fees also raise design issues, such as transfers from high-balance to low-balance participants and from participants to non-plan investors.
    * Better disclosure could help employers and participants avoid unreasonable costs.
    * Policymakers may also want to opine on the transfers embedded in today’s fee structure.

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