401(k) - recovery of administrative fees from EE's

Pricehcs · July 2004

Two questions. The first is a general business practice question (is this right vs. wrong, a prevailing practice vs. unheard of, etc.) How many of you pass through some/all of the administrative fees charged by your 401(k) vendor.

Assuming anyone says yes, the second question is on the tactical level of how (every payroll deduction, annual fee...)

I find my opinion on this topic significantly torn between being a financial business partner to my company and being a steward to the employees to try to maximize the company's benefit provided towards their retirement. Thoughts?

#1 thing a consultant shouldn't say: "I could tell you the answer right now, but we're committed to a three month project..." #-o

HRGuyMS · July 2004

Our 401k administrator deducts any fees from the employees accounts (i.e., if there is a $3 per month fee per employee then a percentage of shares are sold from the account once a month to pay those fees).

durasupreme · July 2004

[font size="1" color="#FF0000"]LAST EDITED ON 07-14-04 AT 02:06PM (CST)[/font][br][br]Ditto to HRGuyMS's response - our participants are responsible for the administrative fees. Fees are deducted from participant account balances, not sure how often but assume probably quarterly, possibly annually.

Kiwi · July 2004

I'll ditto dura's ditto. Our 401k administrator takes account fees out of the participant's account balances. The company only pays fees for things that cover the whole plan, such as testing or 5500 prep.

401(k) - recovery of administrative fees from EE's

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