Hidden fees can destroy a good 401(k), America's Best 401k can help you find your best option!
Posted by BoldTV on Tuesday, September 26, 2017
Investing for retirement is difficult when working, but having a 401(k) makes life easier. However, there are fees in 401(k) plans that may drain funds from your accounts that you aren’t aware even exist. Knowing the exact fees taken by a company’s 401(k) program can help determine how much money is lost.
What is a 401(k)?
In a recent survey by GoBankingRates, 43 percent of respondents in the 18-to-24 age group reported that they don’t know what a 401(k) plan is. A 401(k) is a retirement plan that allows employees to put a portion of their pre-taxed salary into a 401(k) account. This money is not taxed until it is taken out of the account.
Employers will sometimes match contributions made by employees; some match the contributions dollar for dollar while others match a percentage of the contribution. The caveat is that employees will have to wait for the money to vest before gaining access to it, usually by working for the company for a set amount of time — the duration varies between different companies. After the money vests, it becomes available to the employee.
People aren’t aware of the fees that may be taking a chunk of their 401(k) savings. America’s Best 401k seeks to help people figure out the excessive fees that are part of their 401(k) plan. It also assists business owners set up a 401(k) plan that helps employees while also limiting corporate liability. America’s Best 401k gives a solution for employees that believe their money is being mishandled and want to correct what’s happening.
Choosing the right 401(k) plan helps invest in the future, but unfortunately, excessive fees may reduce the amount available when the money is finally needed later in life. America’s Best 401k helps people get a sense of their 401(k) plan by comparing it to others and seeing where there may be excessive fees. Seeing potential dangers in current 401(k) plans helps avoid pitfalls that may diminish returns in the future.
Have something to add to this story? Comment below or join the discussion on Facebook.
Header image: Adobe Stock