Our employer is switching from a Wells Fargo 401k administered plan to a Principal plan and is touting the new plan as including "low expense fee options", such as Fidelity and Vanguard. However, Principal is charging an annual "administrative expense" of nearly 1% of the entire account balance (yes, every single year). The Wells Fargo plan did not have this fee. They simply charged an annual $12 fee, which is nearly 0% as compared to my account balance. Wells Fargo also offered multiple low expense fee options, therefore there are no upsides to this new plan.
I am currently maxing out the existing WF plan ($18,000 year, plus 4.5% salary employer match). I am also maxing out a Roth IRA. I have no debt, other than a mortgage with a 2.5% rate. Obviously, I do not plan to roll over the WF to Principal as the new plan administrators are encouraging us to do. They are officially severing our ties with WF at the end of the month and all new contributions will go to the Principal plan. What are my options here? I want to maximize my tax advantaged accounts, but I refuse to handover 1% of my annual balance to these people. I plan to contribute 6% of my salary to get the 4.5% employer match, but where do I put the remainder of the $18,000 - 6% salary contribution?
Submitted June 12, 2017 at 10:28AM by RecycledDinosaurs http://ift.tt/2sTMHER
