Apart from fees charged for administration of the plan itself, Aflac employees must consider how there are three basic types of fees that may be charged in connection with investment options in a 401(k) plan. These fees, which can be referred to by different terms, including: Sales Charge, Management Fees, and Other Fees.
| 'Investment products that require significant management, research and monitoring services generally will have higher fees.' |
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Sales Charges
Also known as loads or commissions. For Aflac employees, These are transaction costs for buying and selling of shares. They may be computed in different ways, depending upon the particular investment product.
Management Fees
Also known as investment advisory fees or account maintenance fees. These are ongoing charges for managing the assets of the investment fund. They are generally stated as a percentage of the amount of assets invested in the fund. Sometimes management fees may be used to cover administrative expenses. Those employed in Aflac should know that the level of management fees can vary widely, depending on the investment manager and the nature of the investment product. Investment products that require significant management, research and monitoring services generally will have higher fees.
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Other Fees
This category covers services, such as record keeping, furnishing statements, toll-free telephone numbers and investment advice, involved in the day-to-day management of investment products. They may be stated either as a flat fee or as a percentage of the amount of assets invested in the fund. As a Aflac employee, understanding the different types of fees and how they are applied is imperative when looking to avoid overpaying and being taken by surprise.
What type of retirement savings plan does Aflac offer to its employees?
Aflac offers a 401(k) retirement savings plan to its employees.
Does Aflac match employee contributions to the 401(k) plan?
Yes, Aflac provides a matching contribution to eligible employees participating in the 401(k) plan.
How can employees at Aflac enroll in the 401(k) plan?
Employees at Aflac can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
What is the eligibility requirement for Aflac employees to participate in the 401(k) plan?
Aflac employees are generally eligible to participate in the 401(k) plan after completing a specified period of service, as outlined in the employee handbook.
Can Aflac employees take loans against their 401(k) savings?
Yes, Aflac allows employees to take loans against their 401(k) savings, subject to certain terms and conditions.
What investment options are available in Aflac's 401(k) plan?
Aflac’s 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.
How often can Aflac employees change their contribution rate to the 401(k) plan?
Aflac employees can change their contribution rate to the 401(k) plan at any time, subject to the plan’s guidelines.
What is the vesting schedule for Aflac's 401(k) matching contributions?
Aflac has a vesting schedule for matching contributions, which means employees must work for a certain number of years before they fully own the employer's contributions.
Are there any fees associated with Aflac's 401(k) plan?
Yes, Aflac’s 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.
Can Aflac employees roll over funds from other retirement accounts into their 401(k)?
Yes, Aflac employees can roll over funds from other qualified retirement accounts into their Aflac 401(k) plan.