More and more employees are investing in their futures through 401(k) plans. Employees who participate in 401(k) plans assume responsibility for their retirement income by contributing part of their salary and, in many instances, by directing their own investments.
If you are among those who direct your investments, you will need to consider the investment objectives, the risk and return characteristics, and the performance over time of each investment option offered by your plan in order to make sound investment decisions. Fees and expenses are one of the factors that will affect your investment returns and will impact your retirement income.
A new rule requires the plan's administrator (often your employer) to provide plan, investment, and fee information to you. As a result of these new rules, you can determine the reasonableness of the costs you're being charged to save for retirement and compare the costs associated with different investments.