Don't Miss

Fidelity Tax on Vanguard Funds Highlights Flaws of Revenue Sharing in 401k Plans

Fidelity Tax on Vanguard Funds Highlights Flaws of Revenue Sharing in 401k Plans. The recent move to tax Vanguard funds used by Fidelity’s record keeping clients, while unusual, makes economic sense yet highlights the flaws of revenue sharing.

New plan sponsors that use Fidelity’s 401k recordkeeping services with less than $25 million must pay a surcharge of 5 BPs or 0.05%. Watch my vlog to understand why Fidelity is taking this unique move and why plan sponsors should consider using clean shares or those that do not have revenue sharing embedded in the expense ratio of investments.

x

Check Also

Retirement Advisor

Retirement Advisor Specialists Make Knowledgeable Contributions

Retirement Advisor Specialists Make Knowledgeable Contributions Retirement Advisors come with various backgrounds and experiences.  When a Plan sponsor is a niche-player – such as understanding a construction firm or a manufacturing company – a retirement advisor who brings the same ...