Administrative and Investment Fees That May Be Charged

Q. What kinds of administrative and investment fees might be charged to a 403(b) plan? 

A. The following are examples of such fees:

• Recordkeeping and administrative services: track individual contributions and reporting returns
• Consulting and investment advice: help the plan sponsor select funds for the plan and monitor investments
• Investment management: covers managing investment fund assets; fees are generally stated as a percentage of the amount of assets involved
• Marketing and distribution: commissions to brokers and other salespersons, for expenses such as advertising and other costs of promoting the fund to investors
• Trading/transaction costs: commissions and other fees associated with an investment manager’s buying and selling of securities within a particular investment vehicle
• Wrap fees: aggregate fees that encompass multiple components, such as investment management fees, surrender fees,b and administrative expense fees.
• Other administrative services: trustee, legal, and audit services