Breaking down retirement plan fees
Understanding the costs associated with your organization’s retirement plan can seem complicated. But it doesn’t need to be that way. We’re breaking it down to help you get a better grasp on possible options and help you make more informed decisions.
Know your options
With so many ways to cover the costs, you’ve got a lot of options. But that might add to the confusion. This fee payment decision tree (PDF) can help. Use it to get some facts and better understand the implications of the decisions you make.
Keep in mind every plan sponsor and every plan looks a little different, so there’s no one-size-fits-all approach. You’ll want to evaluate which method or combination best meets the needs of your organization’s plan.
Document, document, document
Once you get a handle on plan fees, you should document and file your organization’s decision-making process. What’s most important are the reasons why you make the decisions about how you collect and pay for plan costs.
A sample fee policy statement (Word) ccan make your job a little easier and provide an objective process for managing and allocating fees. It’s a good thing to have in place if there are questions about your policy.
Need more help?
If you want to know more about plan fees or what they mean for your organization, talk with your financial professional or third party administer if you work with one. Or give us a call at 800-986-3343. We want to help.
The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.
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