Do you pay a load for 401k funds?

[m3racer]

I called my 401k provider and they said I don't pay any loads on my funds because they are a part of a 401k plan. I asked them if I could get this in writing but they said no. This sounds very fishy to me. Unfortunately my 401k only offers funds with loads of 5.75% according to their fund prospectus.

[disneysteve]

The prospectus should also spell out the different fee structures for 401k plans. It should be quite simple to figure this out. Just look at your last statement. If you contributed $1,000 and $1,000 went into the account, there is no load.

Typically, there are no loads for 401k plans, even if an outside investor buying the same fund would pay a load.

[GREENBACK]

I called my 401k provider and they said I don't pay any loads on my funds because they are a part of a 401k plan. I asked them if I could get this in writing but they said no. This sounds very fishy to me. Unfortunately my 401k only offers funds with loads of 5.75% according to their fund prospectus.

I'm guessing that the load is being waived from what you're describing. Not sure about the put it in writing part. May just be a policy not to do that.

[creditcardfree]

I'd call back and ask for a prospectus, they have to provide it to you. Your human resources may also have a copy. Most likely you were given correct information, but a look at the prospectus would confirm that.

The prospectus should outline fees for different types of shares with in the same mutual fund. "A" shares are front end load, usually 5.75%, "B" shares are back end load, which means that you pay when you redeem. 401K's often are invested in a different share class, which helps the fund calculate fees appropriately.

Good luck confirming the information. What mutual fund company is your 401K with?

[Broken Arrow]

My old 401(k) does, but my new 401(k) with Fidelity does not.

The front load on my old 401(k) was also 5.75%, but I decided to swallow that bitter pill to capture employer matching, which more than offsets the load....

But I'm glad to be out of there anyways. I plan to roll my old 401(k) out of there as soon as it's practical, which will be next January when the employer contribution hits my account.