Author Topic: please forgive the very basic question about fees!  (Read 402 times)

msbutterbean

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please forgive the very basic question about fees!
« on: January 03, 2019, 01:14:54 PM »
I believe this is a simple yes or not question, but I want to make sure I'm not misunderstanding what I'm reading as I compare my company 401K plan to the Vanguard IRA option.

Assets in my company's plan incur the fund expense as well as an administrative fee. A Vanguard IRA only has the expense ratio? And no administrative fee? (I guess that's two questions.) The only reference I can find to fees is a $20 per year account fee, which is waived because I signed up online and am using all electronic notifications.

Eric

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Re: please forgive the very basic question about fees!
« Reply #1 on: January 03, 2019, 01:56:04 PM »
I believe this is a simple yes or not question, but I want to make sure I'm not misunderstanding what I'm reading as I compare my company 401K plan to the Vanguard IRA option.

Assets in my company's plan incur the fund expense as well as an administrative fee. A Vanguard IRA only has the expense ratio? And no administrative fee? (I guess that's two questions.) The only reference I can find to fees is a $20 per year account fee, which is waived because I signed up online and am using all electronic notifications.

Correct.  Nearly all 401k plans have additional fees on top of the fees the funds charge (expense ratios).  There's no additional fees for an IRA with Vanguard (assuming you're buying their funds, if not a trading fee may apply).

msbutterbean

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Re: please forgive the very basic question about fees!
« Reply #2 on: January 08, 2019, 08:20:43 AM »
Thanks!