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Subject:  Re: fees in 401k Date:  12/25/2004  12:04 AM
Author:  W401K Number:  43703 of 88099

You will not see a line item on your statement for expenses of the fund. THese are the expenses that make up the expense ratio, they include, management fees, 12b-1 fees, Custodial, or transfer agent fees, marketing expenses, etc. THese expenses are taken out daily when the NAV of the fund is calculated. Assets of the fund, minus expenses, divided by the number of outstanding shares gives you the NAV. THe expense ratio is part of that fee. It is found in the prospectus. (Prospecti??)
IF your 401k is offered by an insurance company there may be other fees that are deducted from the assets and not disclosed. IF it is with a mutual fund company, any other expenses that are deducted from the Plan assets, other than the expense ratio must be disclosed on the IRS Form 5500 for your plan. In most cases the employer pays the administrative charge and it is not required to be disclosed if that is the case. Ask your employer what they are paying for the plan and ask them for an explanation of the fee you see being deducted.


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