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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.

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Retirement Security Becomes More Accessible Under Proposed Law

Retirement security for American workers made a giant legislative leap last week.  The House Ways and Means Committee passed the Securing a Strong Retirement Act, also known as SECURE 2.0, to the House floor.  SECURE 2.0 furthers initial progress made ...