My brother recently qualified for his companies 401k and asked me for help deciding what to do. Since I use the TSP, I don't understand everything about his paperwork. Can someone help me answer this question?
In the screenshot of his paperwork, you see that the paragraph describes an "Administration Expense" that is pro rata. Then below that in the table it says the "Administration Fee" is $150/month. Are these two separate fees? Is it one flat fee of $150/month? One pro rata fee that is a percentage of $150/month? Something else entirely?
Any fees over $200/month would entirely wipe out his company match, leaving him with no benefit over an IRA and a lot of not great investment options. So if the fees are high, I might just direct him to an IRA. Beyond what I listed above, there are also a couple small ($5-10/month) fees.
Any help is appreciated. Thanks!