Breaking down fee levelization —revenue sharing with fee adjustments

We’ve been talking a lot about the various ways business owners (e.g., those with a 401(k) or 403(b) plan) can cover the administrative costs of a retirement plan. Some use revenue sharing from the plan’s investment options to cover these fees. Others use fee levelization, which allows the owner to split administrative costs equally among retirement plan participants.

When it comes to fees, there’s no one right answer. But, whatever the owner chooses, there should be a rationale for it. That’s where we come in. We’re here to help you understand the various fee levelization (a.k.a. fee equalization) options.

And there are a few ways to do this. This video briefly explains one option – revenue sharing with fee adjustments…

feeConsider using it the next time you talk about fee levelization with a retirement plan client or prospect.

Need to explain another fee levelization option?

Want other ways to start the conversation?

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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.

Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group®, Des Moines, Iowa 50392.

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