Pub. 5 2014 Issue 1

www.wvbankers.org 24 West Virginia Banker Mutual funds also may charge 12b-1 fees, which are ongoing fees paid out of fund assets. 12b-1 fees may be used to pay commis- sions to brokers and other salespersons, to pay for advertising and other costs of promoting the fund to investors and to pay various service providers to a 401(k) plan pursuant to a bundled services arrangement. They are usually between 0.25 percent and 1.00 percent of assets annually. Management fees 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 manage- ment fees may be used to cover administrative expenses. Manage- ment fees can vary widely, depending on the investment manager and the nature of the investment product. Surrender and transfer charges are fees an insurance company may charge when an employer terminates a variable annuity contract) before the term of the contract expires. This fee may be imposed if these events occur before the expiration of a stated pe- riod and commonly decrease and disappear over time. It is similar to an early withdrawal penalty on a certificate of deposit or to a back-end load or redemption fee charged by some mutual funds. The bottom line—look for funds with low expense ratios and understand your total transaction costs. TOTAL RETIREMENT SOLUTION Seek providers who approach plan design as a total retirement solution, and have the ability to offer defined benefit, defined con- tribution and nonqualified plans. An integrated approach means that all the information you and your employees need is available through a single provider, simplifying information access for you and your staff. Does the provider have a team of in-house retirement benefits experts (ERISA attorneys, actuaries, benefits consultants, investment managers and education specialists) avail- able on a direct access basis? Is this a standard part of the product offering or is there an additional cost for these services? Look for providers who can deliver: • Coordinated plan enrollment, conversion and implementa- tion • A single point of contact for plan administration • Integrated plan reviews & communications • Across the board plan design changes and amendments • A single Internet site with access to consolidated plan infor- mation • Comprehensive compliance testing across all plans n THE PENTEGRA ADVANTAGE Because selecting the right retirement plan is so important, we invite you to consult Pentegra Retirement Services. With more than 65 years of experience in serving the retirement plan needs of financial institutions nationwide, Pentegra delivers distinct advantages. For more information, contact Mark Hogan, Regional Director, Pentegra Retirement Services by calling 513.321.5807 or via email mhogan@ pentegra.com. www.CBBonline.com • 804.239.0452 Do Business With Someone Who Thinks Like You.  Designing the Right Retirement Plan for Your Organization — continued from page 23