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Some 401ks have access to different share classes that have (nearly) identical funds with different fee structures.
by whatok 7y ago
Some 401ks have access to different share classes that have (nearly) identical funds with different fee structures.
- MrRadar 7y agoThis. The employees participating in the 401k plan don't choose which funds the plan includes, HR people (who are often not very well-versed in investing) do. Those HR people will choose these high-ER funds because the 401k provider usually offers discounts to their direct costs for having them, essentially shifting the cost of running the 401k plan from the employer to the employees.