Editor’s note: This is a transcript of the audio file.
A sound financial investment is your retirement plan – but do you know much you’re paying in 401(k) fees? I’m Clark Palmer with your Bankrate.com Personal Finance Minute.
If you’ve been socking away money into your 401(k) plan and hoping for the day you can retire, you might be shocked to learn that money is being taken from your account. How much you ask? Well, that’s a good question since there are no existing retirement fee disclosures.
Financial services companies that manage 401(k) plans charge fees for administering and managing those plans, and employers and employees must pay those fees. In a recent AARP poll, some 62% of respondents say they’re unaware of how much they pay in fees – but the most common fee range is 1.1% to 5% of the account balance.
Fees can have a dramatic impact on the size of your nest egg. The Department of Labor has issued a final regulation on fee disclosures that was supposed to start in January 2012 … but has now been pushed back to August of this year.
Don’t you think you should know how much your 401(k) plan costs? To learn more on this hot topic, visit Bankrate.com. I’m Clark Palmer.