Calculating American Funds 401(k) Fees Using Their 408b-2

We know, it’s hard to believe 401(k) pricing can be this low!

Step #1 — Confirm the AF 408-b2 covers all of your 401(k) fees

Step #2 — Total your 401(k) plan’s direct fees

Step #3 — Total the revenue sharing

  • Enter the current balance for all plan investments into a spreadsheet.
  • Enter the revenue sharing percentage applicable to each fund. This information is found in Exhibit C of the AF 408b-2.
  • Multiply each fund’s balance by its revenue sharing percentage to determine the dollar amount the fund pays AF in revenue sharing.
  • Sum the revenue sharing paid by all plan funds

Don’t overlook revenue sharing when evaluating your 401(k) plan fees!

Are you paying too much for your company’s 401(k) Plan?

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Eric Droblyen

Eric Droblyen

President and CEO of Employee Fiduciary, one of the country’s fastest-growing, low-cost 401(k) providers.