How to explain fee levelization —zero revenue sharing investment options approach

It’s no secret, many retirement plans use revenue sharing from the plan’s investment options to cover necessary fees, such as administrative costs.

But, it often means 401(k) plan participants pay unequal proportions of those fees. Fee levelization — or fee equalization — helps business owners (e.g., those with a retirement plan) split administrative fees equally among all employees enrolled in the plan.

There are a few ways to do this. This short video explains how one option — zero revenue sharing investment options approach — work.

Consider using it the next time you tee up a conversation about fee levelization with a retirement plan client or prospect.

Want a few more ideas in your back pocket?

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The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.

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