MoneyHoney, thanks for the youtube link, it worked fine. As I replied to Brian, I believe Jerry's company is not doing it's fiduciary responsibility because fees are 3.6%. Acceptable total fees would be in the range of 1.5% to even 2%.
Here is what the U.S. Dept. of Labor says:
Fiduciaries have important responsibilities and are subject to standards of
conduct because they act on behalf of participants in a retirement plan and
their beneficiaries. These responsibilities include:
-
Acting solely in the interest of plan participants
and their beneficiaries and with the exclusive purpose of providing
benefits to them;
-
Carrying out their duties prudently;
-
Following the plan documents (unless inconsistent
with ERISA);
-
Diversifying plan investments; and
-
Paying only reasonable plan expenses.
http://www.dol.gov/ebsa/publications/fiduciaryresponsibility.html
I don't think there is any argument that could possibly call 3.6% fees reasonable.
MoneyHoney, isn't there an employee committee that has some input into the 401k operations? If you want a sample letter to send to company HR or plan admistrators regarding their responsibility, I can link one.
Paul
