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Subject:  Re: 401K for small business Date:  7/31/2013  12:38 PM
Author:  2gifts Number:  118949 of 127753

I was just reading through it and it says no initial set-up fee and no annual fees?? I thought there were some kind of fees, for a 401K, similar to mutual fund fees. Can anyone address this? Sorry to be so confused..

I had DH's solo 401k at Fidelity for several years. If you set it up there, then there are no fees. Remember that a 401k is not a mutual fund. It is an account in which you have money that can be invested in a whole host of things just like your IRA. If you use the one at Fidelity, and I think Vanguard may also offer them, then there are no set-up or maintenance fees, and you can invest in whatever you like, but using Fidelity funds in a Fidelity account typically makes the most sense because there are no fees to invest in those funds. If you buy other stocks or other funds through their brokerage, then you will have commissions and such.

If you choose to hold your account at another brokerage house, they may have fees. In my case, we moved a bunch of investments including DH's 401k to a financial planner, and they outsource the 401k account management to someone else, so now I pay $250/year for what (little) they do to maintain the account, and so now I do have fees associated with it, but that is broker-dependent.
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