Questions to Ask 401(k) Plan Advisor

Written by True Tamplin, BSc, CEPF® | Reviewed by Editorial Team

Updated on December 13, 2022

Asking your 401(k) plan advisor questions is a great way to make sure you are getting the most out of your retirement account. Here are a few things to ask:

  • Does my employer match my contributions?
  • Are you a fiduciary for your recommendations?
  • When will I be vested?

401(k) Plan Advisor Fees

The fees charged by 401(k) plan advisors vary. Generally, the greater the value of assets they oversee, the smaller a percentage they charge; however, you can still expect to pay between 1% and 0.5% of the amount being overseen. Some advisors overseeing a small amount of funds may charge more than 1%.

What Does a Financial Advisor Do for a 401(k) Plan?

The goal of a 401(k) plan advisor is to educate the client to ensure the most successful retirement possible, as well as mitigating fiduciary risk to the employer. They assess employee needs, ensure continued investments, educate employees about investment options, and may even provide one-on-one guidance.

Personal 401(k) Plans FAQs

What is a 401(k) plan?

A 401(k) plan is a retirement plan offered by an employer designed to help employees save for retirement.

What Are Questions to Ask 401(k) Plan Advisor?

Here are a few things to ask your 401(k) plan advisor: Does my employer match my contributions? Are you a fiduciary for your recommendations? When will I be vested?

What is the difference between a Roth 401(k) and traditional 401(k)?

With a Roth 401(k), taxes are paid as money is put into the retirement account. With a traditional 401(k), taxes are paid as money is taken out.

Are there other retirement savings plans other than a 401(k) plan?

Alternatives to 401(k) plans include traditional IRAs, Roth IRAs, pension plans (if your employer offers one), and 403(b) retirement plans for employees of non-profit organizations.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

Find Advisor Near You