A plan may deduct fees from a participant’s defined contribution plan account. Plan administration fees and investment fees can be deducted from the account either as a direct charge or indirectly as a reduction of the account’s investment returns. Fees for individual services, such as for processing a loan from the plan or a Qualified Domestic Relations Order, also may be charged to the account. Plan fiduciaries have a specific obligation to evaluate the fees and expenses paid by a plan for its operations. Fiduciaries must establish a prudent process for: selecting plan investment alternatives and plan service providers; ensuring that fees paid to service providers and other plan expenses are reasonable in light of the level and quality of services provided; selecting investment alternatives that are prudent and adequately diversified; and monitoring investment alternatives and service providers once selected to see that they continue to be appropriate choices. Additional resources What You Should Know About Your Retirement PlanPDFA Look At 401(k) Plan FeesPDF401(k) Plan Fees Disclosure ToolPDFUnderstanding Retirement Fees and ExpensesPDF
