Understanding 401(k) Costs and Fees

Small businesses are overlooked in the 401(k) industry and charged higher fees because they have fewer employee participants and smaller account balances.

At Ubiquity, helping small businesses with affordable retirement plans is, and always has been, all that we do.

It is important to understand the types of fees that may be assessed in a 401(k) plan and who can pay those fees, so you can make smart choices when it comes to your retirement savings. In fact, the retirement plan rules require the employer offering the plan to keep an eye on plan costs to ensure they are reasonable based on the services received. The employer must pay some 401(k) fees, and some are deducted from employees’ 401(k) accounts. Here are the fees that typically occur in a 401(k) plan and how they can be paid.