Hi all,
I work at a small non-profit organization that began a 5% match on a 403b plan about 18 months ago. I was thrilled to have the option to get a match, I left a job at a large corporate workplace that had a 6% match and while the work here has been very fulfilling it was disappointing to lose that benefit.
The plan offers some good low cost index funds (0.02 - 0.08 ERs) and I'm pleased with these offerings. However, I recently went through the annual fee disclosure and realized there are some large fees (relative to my account) that I wasn't aware of and I wanted to get feedback from this community on those fees. I'm considering talking to the person who administers our fund about some changes but wanted to see if I'm just being sensitive or if these fees are concerning to those that have a broader view of the 403(b) plan landscape.
The fees we are charged are:
1. Per Participant Recordkeeping Fee:
$24 per year per participant, charged as a flat rate.
2. Single Sum Recordkeeping Fee:
$2000 per year, distributed pro-rata based on the relative asset size of each participant's account.
3. 3(38) Service Provider Fee:
0.01% per year, taken from the participant's account balance.
4. Fees by (a company I've never heard of, I assume they own the small shop that sold us the plan?) --- Financial:
0.05% per year, taken from the participant's account balance.
5. Fees by (The guy that sold us the plans company) --- Wealth, LLC:
0.75% per year, taken from the participant's account balance.
To be clear, no one here does any advised stuff and most of us are in simple index funds so I'm not sure why we need to pay 0.75% to the company that sold us the plan. Further, the flat single sum recordkeeping fee cost me almost $400 last year on a ~13,000 balance, pretty huge fee considering the relatively small balance.
Opinions and thoughts appreciated!
I work at a small non-profit organization that began a 5% match on a 403b plan about 18 months ago. I was thrilled to have the option to get a match, I left a job at a large corporate workplace that had a 6% match and while the work here has been very fulfilling it was disappointing to lose that benefit.
The plan offers some good low cost index funds (0.02 - 0.08 ERs) and I'm pleased with these offerings. However, I recently went through the annual fee disclosure and realized there are some large fees (relative to my account) that I wasn't aware of and I wanted to get feedback from this community on those fees. I'm considering talking to the person who administers our fund about some changes but wanted to see if I'm just being sensitive or if these fees are concerning to those that have a broader view of the 403(b) plan landscape.
The fees we are charged are:
1. Per Participant Recordkeeping Fee:
$24 per year per participant, charged as a flat rate.
2. Single Sum Recordkeeping Fee:
$2000 per year, distributed pro-rata based on the relative asset size of each participant's account.
3. 3(38) Service Provider Fee:
0.01% per year, taken from the participant's account balance.
4. Fees by (a company I've never heard of, I assume they own the small shop that sold us the plan?) --- Financial:
0.05% per year, taken from the participant's account balance.
5. Fees by (The guy that sold us the plans company) --- Wealth, LLC:
0.75% per year, taken from the participant's account balance.
To be clear, no one here does any advised stuff and most of us are in simple index funds so I'm not sure why we need to pay 0.75% to the company that sold us the plan. Further, the flat single sum recordkeeping fee cost me almost $400 last year on a ~13,000 balance, pretty huge fee considering the relatively small balance.
Opinions and thoughts appreciated!
Statistics: Posted by caderader — Wed Aug 21, 2024 7:48 am — Replies 5 — Views 227