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Plan Fees

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Why It Does Not Make Sense to Pay 401(k) Plan Fees from Plan Assets

While it is convenient, it is not beneficial to pay 401(k) plan fees from plan assets.  When plan fees are deducted from plan assets, they are usually done on a pro rata basis – plan participants with the highest account balances pay the highest fees.  This could greatly affect your overall investment return over a longer investment horizon when you factor in compounded growth.  These fees could leave a six-figure dent in your retirement savings.  This is especially true if your 401(k) provider charges a high