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1.
All fees levied on your 401(k) plan must be paid by you.
False. Some fees are paid by your employer.
2.
Which type of fund in a 401(k) plan is offered by an insurance company?
Variable annuity. Annuities are set up by insurance companies and therefore have insurance characteristics about them.
3.
If your 401(k) plan is an index fund, it is _______ managed.
Passively. Because index funds are made of the same investments that are in market indexes, they change very little.
4.
Your 401(k) plans annual report details the expenses that you paid individually for your plan.
False. The annual report is a general document that covers the 401(k) plan overall. You should consult your account statement for information on any fees that you paid individually.
5.
You may have to pay a fee if you take out a loan from your 401(k) plan.
True. This is an optional service, and there is often a fee for it.
6.
What is the purpose of paying fees on your 401(k) plan?
Fees provide services that keep your account running. The purpose of fees is to provide various services for the health and maintenance of your account.