401k Fees Not Disclosed

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Topic Author
Kookaburra
Posts: 105
Joined: Thu Apr 02, 2020 11:14 pm

401k Fees Not Disclosed

Post by Kookaburra » Sat May 23, 2020 7:47 pm

Hi Bogleheads

My understanding is that 401k plans are required to provide disclosure/transparency regarding plan fees. By fees, I’m referring to recurring “maintenance” or “advisor” types of fees (read: fluff fees) that result in forced selling of participant shares to cover them. If a 401k plan does not disclose any such fees, can they still deduct them from participant balances? If a plan does deduct them without providing any sort of disclosure or notification beforehand, what recourse does someone have to get recovery?

Thank you!

retired@50
Posts: 2646
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: 401k Fees Not Disclosed

Post by retired@50 » Sat May 23, 2020 7:49 pm

Kookaburra wrote:
Sat May 23, 2020 7:47 pm
Hi Bogleheads

My understanding is that 401k plans are required to provide disclosure/transparency regarding plan fees. By fees, I’m referring to recurring “maintenance” or “advisor” types of fees (read: fluff fees) that result in forced selling of participant shares to cover them. If a 401k plan does not disclose any such fees, can they still deduct them from participant balances? If a plan does deduct them without providing any sort of disclosure or notification beforehand, what recourse does someone have to get recovery?

Thank you!
Every 401k plan participant is entitled to a summary plan document. If you hear otherwise, it's time to get in touch with the Department of Labor.

Read the document from cover to cover. All fees and related plan expenses should be disclosed, assuming you can get through all the legal jargon.

Regards,
This is one person's opinion. Nothing more.

Topic Author
Kookaburra
Posts: 105
Joined: Thu Apr 02, 2020 11:14 pm

Re: 401k Fees Not Disclosed

Post by Kookaburra » Sat May 23, 2020 7:56 pm

retired@50 wrote:
Sat May 23, 2020 7:49 pm
Kookaburra wrote:
Sat May 23, 2020 7:47 pm
Hi Bogleheads

My understanding is that 401k plans are required to provide disclosure/transparency regarding plan fees. By fees, I’m referring to recurring “maintenance” or “advisor” types of fees (read: fluff fees) that result in forced selling of participant shares to cover them. If a 401k plan does not disclose any such fees, can they still deduct them from participant balances? If a plan does deduct them without providing any sort of disclosure or notification beforehand, what recourse does someone have to get recovery?

Thank you!
Every 401k plan participant is entitled to a summary plan document. If you hear otherwise, it's time to get in touch with the Department of Labor.

Read the document from cover to cover. All fees and related plan expenses should be disclosed, assuming you can get through all the legal jargon.

Regards,
The most recent version of the SPD that was provided a year ago did not indicate any such fees. If the document was updated since, it was not re-distributed. If it was updated but not distributed, can they charge the fees?

retired@50
Posts: 2646
Joined: Tue Oct 01, 2019 2:36 pm
Location: Living in the U.S.A.

Re: 401k Fees Not Disclosed

Post by retired@50 » Sat May 23, 2020 8:03 pm

Kookaburra wrote:
Sat May 23, 2020 7:56 pm
retired@50 wrote:
Sat May 23, 2020 7:49 pm
Kookaburra wrote:
Sat May 23, 2020 7:47 pm
Hi Bogleheads

My understanding is that 401k plans are required to provide disclosure/transparency regarding plan fees. By fees, I’m referring to recurring “maintenance” or “advisor” types of fees (read: fluff fees) that result in forced selling of participant shares to cover them. If a 401k plan does not disclose any such fees, can they still deduct them from participant balances? If a plan does deduct them without providing any sort of disclosure or notification beforehand, what recourse does someone have to get recovery?

Thank you!
Every 401k plan participant is entitled to a summary plan document. If you hear otherwise, it's time to get in touch with the Department of Labor.

Read the document from cover to cover. All fees and related plan expenses should be disclosed, assuming you can get through all the legal jargon.

Regards,
The most recent version of the SPD that was provided a year ago did not indicate any such fees. If the document was updated since, it was not re-distributed. If it was updated but not distributed, can they charge the fees?
Maybe try here... The Department of Labor has an explanatory document called "A look at 401k Plan fees". I suggest you give it a serious look. They even have an 800 number.

https://www.dol.gov/sites/dolgov/files/ ... n-fees.pdf

Regards,
This is one person's opinion. Nothing more.

Vanguard Fan 1367
Posts: 1579
Joined: Wed Feb 08, 2017 3:09 pm

Re: 401k Fees Not Disclosed

Post by Vanguard Fan 1367 » Sun May 24, 2020 9:12 pm

My 401 had reams of paper mailed to me and the other participants including the fees. You are positive that those mailings didn’t happen for you?
Upton Sinclair: "It is difficult to get a man to understand something when his salary depends on his not understanding it."

Katietsu
Posts: 3335
Joined: Sun Sep 22, 2013 1:48 am

Re: 401k Fees Not Disclosed

Post by Katietsu » Mon May 25, 2020 12:44 am

I get an email that contains a link that takes me to a page where this information is provided. It is been about 5 years since getting this by paper was an option. Could there be some alternative distribution method that was used to update the information?

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