Free Guide + Worksheet · 7 pages
How to Read Your 401(k) Fee Disclosure
Where plan costs appear in the 408(b)(2) and participant disclosures, a worksheet to add them up, and how to benchmark them independently.
About This Guide
Find Your Plan's All-In Cost
ERISA requires plan fiduciaries to make sure the plan pays only reasonable expenses. That starts with knowing what the plan pays. This guide shows where costs appear in the disclosures your providers send you, how to spot revenue sharing, and how to add everything up with a one-page worksheet. Then it explains how to compare the result independently.
What's Inside
What You'll Find
- The two fee disclosures every plan sponsor should have, and what each shows
- The four buckets of 401(k) cost and where to find each one
- Direct and indirect compensation, and the clues that revenue sharing is present
- A fill-in worksheet for total cost, cost as a percentage of assets, and cost per participant
- A worked example
- Three ways to benchmark, and red flags worth a closer look
Who It's For
- Business owners, CFOs and controllers
- HR and benefits leaders responsible for the plan
- Committees documenting their annual fee review
Common Questions
About This Guide
No. It is general educational information about how 401(k) plans work. Every plan is different, so please discuss your plan with your ERISA counsel, third-party administrator and tax professional.
Yes. Enter your name, work email and a few details about your company, and you can download the PDF right away. We may follow up to see if it was helpful and to offer a complimentary plan review, and you can tell us if you would rather we did not.
Yes. Contribution limits change every year and SECURE 2.0 provisions are still phasing in. The guide notes the date its information was current and points you to the sources to confirm.
Yes. Many of the plans we review already have a provider. Often we can step in as the plan's investment adviser alongside an independent third-party administrator without changing recordkeepers, so no assets move. A review comes with no cost and no obligation.
Prefer to Talk It Through?
Request a Complimentary Plan Review
Send us your plan's most recent fee disclosure and we will review its costs, investments and structure, then explain what we find in plain terms. No cost and no obligation.
This guide is general educational information, not individualized investment, tax or legal advice and not a substitute for advice from your ERISA counsel or third-party administrator, and is not an offer to buy or sell any security. Investing involves risk, including possible loss of principal. Radius Wealth Management LLC is a Registered Investment Adviser. Registration does not imply a certain level of skill or training. 1 Marina Park Drive #1410, Boston, MA 02210.