Home > Benefits > Beginner
Benefits Beginner: Introduction to 401(k) Plan Fees

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
The document that describes the underlying investments in a 401(k) plan is called _______.
Choose wisely. There is only one correct answer.
The prospectus. The other two reports refer to the 401(k) plan itself.
2.
All fees levied on your 401(k) plan must be paid by you.
Choose wisely. There is only one correct answer.
False. Some fees are paid by your employer.
3.
If you take advantage of an optional feature in a 401(k) plan, do you pay for it on your own or does the plan cover it as part of your normal expenses?
Choose wisely. There is only one correct answer.
You pay for it on your own. Optional features are paid for by you.
4.
Fees for optional services in your 401(k) plan would be paid by _______.
Choose wisely. There is only one correct answer.
You only. Others do not pay for optional services that you use.
5.
401(k) plan fees will have a negligible effect on your account balance over many years.
Choose wisely. There is only one correct answer.
False. Over many years, even small fees will really eat into your account balance.
6.
Which type of fund in a 401(k) plan is offered by an insurance company?
Choose wisely. There is only one correct answer.
Variable annuity. Annuities are set up by insurance companies and therefore have insurance characteristics about them.