Expense charges on my 401K plan

[Guest rodeo618]

I started a job with a different company about 5 years ago and had a rollover fron my previous emplyer to a new 401K plan.The current plan is accessible thru the internet and I have noticed that the Managing company charges my account a monthly"expense" of about $75 per month.I have questioned my company about this and they have provided no explanations.I have requested info from the Managing company on at least 10 different occasions.They have not even returned 1 single call and I call them every day.I have a brother in law who also works here and is in the same plan,but his"expenses show about $10 per month.My questions are: What are the legal "expenses" a managing company can charge?Do I need an Attorney? Can someone help?

[E as in ERISA]

There are reasonable explanations for the differences. Is your account significantly larger than your brother-in-law's because of your rollover? They may be allocating expenses among participants based on the account balance -- so you are allocated more. However, that appears to be a pretty significant charge. Can I assume that it is a small plan, with few participants and you have a comparatively large balance, so that you are getting a large share of the base expenses? (If so, you might compare what it would cost to have it in an IRA). In a large plan with lots of participants, I would expect fees to be not much more than $100 per year per person (assuming that they are passed through at all). Or do you have a self-directed account and are executing a lot of transactions? There may be extra expenses associated with that.

That said, they should be able to give you some explanation to you what the expenses are. If they are an ERISA 404© plan, they would be required to provide you at least some detail of the expense (how much detail is the subject of debate).

[mbozek]

I think you need to call the plan admin and review the Summary plan description for what expenses can be charged to participant's account. $900 is a lot of money just for plan admin- many funds do it for $15-30 a year. Are you sure it isnt the management fee from the fund? Do you have a directed brokerage account under the plan? Under ERISA a plan can charge fees that are reasonable for the service provided.

[Guest rodeo618]

The plan is a small company plan,but is thru Metlife and it is a 401K plan.My rollover intially was $34000 and I have since contributed an add'l $14000.My Metlife agent has told me that no fees would apply to the rollover and it is entirely in a money market acct.The add'l balance is in Metlife funds and I have not made any self directed changes to incur fees.I have contacted my Metlife agent and he is out of the country on personal leave and have spoken with the contact that he directed me to.She has referred my requests to the "area" rep who has yet to call me and I call and request every day.So far I have received not 1 single call.

[Guest mariecummiskey]

follow mbozek's suggestion regarding reading the spd. put your request for info in writing, to plan admin, trustee. maybe cc metlife.