Are loads normally waived in 401k funds?

Question

Are loads normally waived in 401k funds?

Answer 1

No, it is illegal to waive fees for a select group of investors.

Usually the fees paid by a 401K administrator is not a material significance in the performance or the calculation of the value of the investments made by the plan.

However, since the administrator is purchasing larger quantities than an individual investors many funds have a sliding fees schedule that would be somewhat benefical to the plan

Answer 2

No. But sometimes they are are. You have to check.

http://www.dol.gov/ebsa/publications/401...

http://www.marketwatch.com/news/story/pu...

Answer 3

Good question.  Principal.com just added an A fund to our choices.  The investment profile link to Morningstar info shows a max sales charge of 4.25%, but the fact sheet from Principal does not mention any fee other than the 12-b fee that is part of the expense ratio.

Return is similar to, but down less than a similar fund we have.  Companies and percentage of countries are different, so maybe I should toss something in there to see how they compare.  Accounting for the momentary difference, the long term returns are comparable.

Answer 4

No, not if you're buying loaded funds.  Stick with no-loads.