Apart from fees charged for administration of the plan itself, Blue Cross Blue Shield 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.' |
|
Sales Charges
Also known as loads or commissions. For Blue Cross Blue Shield 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 Blue Cross Blue Shield 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.
Featured Video
Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
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 Blue Cross Blue Shield 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 Blue Cross Blue Shield offer to its employees?
Blue Cross Blue Shield offers a 401(k) retirement savings plan to help employees save for their future.
How can employees of Blue Cross Blue Shield enroll in the 401(k) plan?
Employees can enroll in the Blue Cross Blue Shield 401(k) plan by completing the enrollment process through the company’s HR portal.
Does Blue Cross Blue Shield provide any matching contributions to the 401(k) plan?
Yes, Blue Cross Blue Shield offers a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.
What is the eligibility requirement for employees to participate in Blue Cross Blue Shield's 401(k) plan?
Employees are typically eligible to participate in Blue Cross Blue Shield's 401(k) plan after completing a specified period of service, as outlined in the plan documents.
Can employees of Blue Cross Blue Shield change their contribution percentage to the 401(k) plan?
Yes, employees can change their contribution percentage to the Blue Cross Blue Shield 401(k) plan at any time, subject to the plan's guidelines.
What investment options are available in Blue Cross Blue Shield's 401(k) plan?
Blue Cross Blue Shield offers a variety of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.
Is there a vesting schedule for the employer match in Blue Cross Blue Shield's 401(k) plan?
Yes, Blue Cross Blue Shield has a vesting schedule for employer matching contributions, which determines when employees gain full ownership of those funds.
How can employees access their 401(k) account information at Blue Cross Blue Shield?
Employees can access their 401(k) account information through the online portal provided by Blue Cross Blue Shield’s retirement plan administrator.
Are there any fees associated with Blue Cross Blue Shield's 401(k) plan?
Yes, there may be administrative fees associated with the Blue Cross Blue Shield 401(k) plan, which are disclosed in the plan documents.
What happens to an employee's 401(k) balance if they leave Blue Cross Blue Shield?
If an employee leaves Blue Cross Blue Shield, they have several options for their 401(k) balance, including rolling it over to another retirement account or leaving it in the Blue Cross Blue Shield plan if permitted.