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1.
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.
2.
In a 401(k) plan, commissions would be covered under which type of fee?
Investment fees. Commissions cover the buying and selling of investments; therefore, you pay for them as part of your investment fees.
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.
Employers are required by law to ensure that 401(k) plan fees be reasonable.
True. This is one of their duties under the Employee Retirement Income Security Act, or ERISA.
5.
401(k) plan fees will have a negligible effect on your account balance over many years.
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?
Variable annuity. Annuities are set up by insurance companies and therefore have insurance characteristics about them.