Are Your Retirement Plan Participants
Receiving Their Fair Share?
Receiving Their Fair Share?
What if everyone in your plan shared plan fees equitably?
Common Retirement Plan Fiduciary Issue:
Different Mutual Funds produce different amounts of Revenue Sharing (Hidden Fees)
Assume you have two participants with identical account balances of $500,000. Each participant is
invested in a different mutual fund and the revenue sharing from each fund is outlined below:
Susan is investing in Mutual Fund A
$1,750
– Amount of hidden fees paid by Susan
Calculation: $500,000 account balance with hidden fees of 35 basis points = $1,750
Calculation: $500,000 account balance with hidden fees of 35 basis points = $1,750
Jim is investing in Mutual Fund B
$1,250
– Amount of hidden fees paid by Jim
Calculation: $500,000 account balance with hidden fees of 25 basis points = $1,250
Calculation: $500,000 account balance with hidden fees of 25 basis points = $1,250
Is this fair?
Can you explain to Susan why her fees are higher than Jim's?
Ask Us Why This is Important Under the New 408(b)(2) Retirement Regulations.
