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Financial Planning / Foolish 401(k)s


Subject:  Re: Better 401K Administration Date:  3/4/2013  8:18 AM
Author:  mjolah Number:  25020 of 26276

There are hundreds of solutions out there - and the selection of one is a "fiduciary function" that should be performed with due care (and not through necessarily a bulletin board...). If the plan has an advisor or consultant, they should should be engaged to prepare an RFI or RFP to search for another provider (or force the current one to get better - in many cases options are available, but only to those who ask).

As far as the brokerage window is concerned, $50 commissions is steep - but check if there are on-line options that are cheaper. Many use Schwab or TD Ameritrade for brokerage platforms, and both charge what I consider outrageous fees for phone call trades, but very reasonable fees for on-line trades.

The $100 "maintenance fee" for having a brokerage account is actually pretty standard. Check your fee disclosure documents (required last summer, and annually thereafter). The recordkeeper gets "revenue sharing" from the core mutual funds in teh plan, but nada, zip, zilch for assets in brokerage accounts. To ensure all participants pay the freight, a maintenance charge is assessed. Fee disclosure documents should tell you more.
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