Choose wisely. There is only one correct answer to each question.
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1.
Which 401(k) document details information about your account, as opposed to the 401(k) in its entirety?
Account statement. The account statement covers your own plan.
2.
Fees for optional services in your 401(k) plan would be paid by _______.
You only. Others do not pay for optional services that you use.
3.
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.
4.
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.
5.
Which of the following 401(k) plans likely has the highest fees?
One with actively managed funds. Actively managed funds have a lot of buying and selling going on, which results in various investment fees that you must pay.
6.
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.