If you are employer and want to establish 401k Retirement plan for your employee you should

be aware of the benefit and disadvantage of all 401k retirement plans. As you may know that

to become employer it takes time and effort and of course capital because you have to pay

your employee for a job that they performed. In today’s day more and more employees are

investing in their futures through 401k retirement plan and you need to provide that plan

to your employee if you want to retain your employee in job. Employees who participate in

401k plans assume responsibility for their retirement income by contributing part of their

salary and, in many instances, by directing their own investments. What is your

responsibility as employer? Of course deduct portion of your employee income and put into

401k plans. You have to open 401k plan in banks, or financial institution and financial

institution will managing your 401k plan. Most employee wish to invest money by their own

on stock market by stock, bonds, mutual funds and other financial product but in realistic

they can’t invest money on their own they can only choose with mutual funds they wish to

have on their portfolio.  Consider fee when you open 401K for your employee!

In a 401(k) plan, your account balance will determine the amount of retirement income you

will receive from the plan and of course if you negotiate fee with your account

administrator then you will gain more value on your account!. While contributions to your

account and the earnings on your investments will increase your retirement income, fees and

expenses paid by your plan may substantially reduce the growth in your account. I would

like to show example how fee may affect investing on your 401k retirement account. Assume

that you are an employee with 40 years until retirement and a current 401(k) account

balance of $50,000. If returns on investments in your account over the next 40 years

average 12 percent and fees and expenses reduce your average returns by 0.5 percent, your

account balance will grow almost 2 million at retirement, even if there are no further

contributions to your account. If fees and expenses are 1.5 percent, however, your account

balance will be less of $200 thousand dollars.
401K fee 
Plan Administration Fees - The day-to-day operation of a 401(k) plan involves expenses for

basic administrative services -- such as plan record keeping, accounting, legal and trustee

services -- that are necessary for administering the plan as a whole
Investment Fees - By far the largest component of 401(k) plan fees and expenses is

associated with managing plan investments. Fees for investment management and other

investment-related services generally are assessed as a percentage of assets invested. You

should pay attention to these fees. You pay for them in the form of an indirect charge

against your account because they are deducted directly from your investment returns. Your

net total return is your return after these fees have been deducted. For this reason, these

fees, which are not specifically identified on statements of investments, may not be

immediately apparent.
Individual Service Fees - In addition to overall administrative expenses, there may be

individual service fees associated with optional features offered under a 401(k) plan.