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the contracting agency i work for FINALLY sent me the info on their 401k plan. they also alerted me that because employees' contributions have slacked dramatically this year, they will be disbanding the plan in december unless it picks up. i had initially thought to contribute as much as i could until december, then lie low until such a time as the plan gets re-instated.

but then i got the info about the plan itself. it's through MFA, and the funds i can choose from are all actively managed funds with sales loads. this is not what i wanted.

my first question: is it lame to pump cash into a 401k plan that seems likely to die in three months, leaving me invested in funds i paid a fee for? i can roll them over if the plan ends, but i lose the money i paid in fees. and if i keep them at MFS i'm still stuck in an actively managed fund with a higher expense ratio (three or four times higher!) than i'm used to at vanguard.

my second question: if i do invest in the plan, is there a way i can minimize how much i have to pay in sales load? having assumed that i never wanted to be invested in a load fund, i don't know how they work--do you pay the fee when you initially invest in each fund, or every time you put money in?

thanks to whoever can weigh in on some of these . . .

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