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7. Which of the following statements best describes how your company's 401(k) plan is managed,
which includes functions such as reporting plan information to the federal government and
evaluating the services provided to the plan and the fees for those services?
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a. |
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b. |
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c. |
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d. |
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a. Recordkeeping and administrative services
(i.e. tracking individual account contributions and reporting).
These fees could be charged as a flat amount or a percentage of plan assets.
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(View responses) |
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b. Investment management fees, which are ongoing charges for managing the assets of the
investment fund. They are generally stated as a percentage of the amount of assets invested.
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(View responses) |
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c. Retirement plan consultant or investment advisor, which includes fees
charged by an advisor, often a consultant, hired to help the plan sponsor
select funds for the plan and to monitor investments.
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(View responses) |
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d. Other service fees, such as trustee, legal, and audit fees (Please do not include individual participant
transaction fees, such as fees for loans.)
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(View responses) |
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a. Marketing and distribution fees, also known as 12(b)-1 fees, may be used to
pay commissions to brokers and other salespersons, for expenses such as
advertising and other costs of promoting the fund to investors.
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(View responses) |
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b. Sub-transfer agent (Sub-TA) fees, which are typically fees used to reimburse a plan's
recordkeeper for shareholder services that the fund would have otherwise provided, such as maintaining
participant-level accounts and distributing the fund's prospectus.
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(View responses) |
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c. Excess commission, also known as SEC rule 28(e) soft dollars, which are extra commissions charged by brokerage
firms and paid to investment advisors and others - in the form of services other than execution of securities transactions,
such as research products - for directing business to brokerage firms.
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(View responses) |
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d. Trading / transaction costs, which include commissions associated with an investment manager's
buying and selling of securities within a particular investment vehicle, such as a mutual fund.
These are the costs associated with portfolio turnover.
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(View responses) |
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e. Wrap fees, which are generally associated with annuities, are aggregate
fees that encompass multiple components, such as investment management fees,
surrender charges, mortality and expense risk charges, and administrative fees.
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(View responses) |
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