The management fees of the mutual funds held in the plans are not the only issue. Other fees can also be hidden in plan management contracts, including wrap fees, annuity contract fees and sales and marketing charges on the mutual funds. Those fees can allegedly significantly negatively impact workers' retirement incomes. According to an estimate published by the Labor Department "...a worker with a $25,000 balance in her 401(k) account, who earned 7 percent annually and paid 0.5 percent a year in fees would have $227,000 saved after 35 years. If an extra 1 percent in fees were drained out of her account every year, she would have just $163,000 at the end of that period." (Reuters.com)
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