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Benefits Beginner: Introduction to 401(k) Plan Fees

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1.
All fees levied on your 401(k) plan must be paid by you.
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False. Some fees are paid by your employer.
2.
The document that describes the underlying investments in a 401(k) plan is called _______.
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The prospectus. The other two reports refer to the 401(k) plan itself.
3.
Fees for optional services in your 401(k) plan would be paid by _______.
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You only. Others do not pay for optional services that you use.
4.
Which type of fund in a 401(k) plan is offered by an insurance company?
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Variable annuity. Annuities are set up by insurance companies and therefore have insurance characteristics about them.
5.
What is the purpose of paying fees on your 401(k) plan?
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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.
6.
If your 401(k) plan is an index fund, it is _______ managed.
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Passively. Because index funds are made of the same investments that are in market indexes, they change very little.