RSSThis would certainly seem to be the case based upon this excellent and disturbing post by Kathy Kristof-Senate Moves to Keep 401(k) Fees Hidden.
This issue needs be kept on the front burner. I fear that the Senate Finance Committee is hesitating to act on this issue out of fear that contributions from 401(k) providers will dry up. In my opinion this is the height of lawmakers putting interests of the public last.
I encourage you to email the members of the Senate Finance Committee and ask them what they could possibly still need to "vet." Ask them to reconsider their decision and to pass a measure that mandates uniform, total, and full disclosure of ALL fees and expenses for all 401(k) plans. No loopholes, no
Showing posts with label 401 k how works. Show all posts
Showing posts with label 401 k how works. Show all posts
not abaut 401k plan
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The secret sauce for 401 kplan
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Many registered reps selling 401(k) plans in the small to mid-sized market would have you believe this.
To be clear, I have enormous respect and admiration for American Funds as a fund family. They offer a number of excellent funds. They have a deep management/research group. I use several of their funds in 401(k) plan line-ups and in the accounts of some of my individual clients (no-load share classes).
Contrary to what these registered reps may tell you, an all American Funds lineup is not, in my opinion, a complete 401(k) solution.
401 k how it works
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Employee 401k contribution are automatically deducted from their paycheck each pay period. This money will be before the employees paycheck is taxed over. The contributions are invested at the employees direction in one or more funds in the plan provided. Employers often "match" employee contributions, but are not obliged to. While the investments grow in the employees 401k account, they do not pay taxes on it.
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