Factors That Impact 401(k) Fees For Booz Allen Hamilton Holding Employees

Healthcare Provider Update: Healthcare Provider for Booz Allen Hamilton Holding Booz Allen Hamilton Holding Corporation offers healthcare benefits primarily through employer-sponsored insurance plans. The company collaborates with leading insurers in the market to provide comprehensive coverage options for its employees, ensuring that they have access to a variety of healthcare services. Commentary on Potential Healthcare Cost Increases in 2026 As the healthcare landscape shifts towards 2026, Booz Allen Hamilton and its employees may face substantial increases in healthcare costs, driven by factors such as the impending expiration of enhanced federal premium subsidies from the Affordable Care Act (ACA) and escalating medical expenses. Projections indicate that healthcare premiums could surge by as much as 75% for many employees if subsidy protections are removed, particularly in states where insurers are seeking significant rate hikes. This trend underscores the importance of proactive financial planning for employees, as navigating these potential cost increases will be crucial for maintaining adequate health coverage in the coming years. Click here to learn more

More and more Booz Allen Hamilton Holding employees are investing in their futures through 401(k) plans. Booz Allen Hamilton Holding employees who participate in 401(k) plans assume responsibility for their retirement income by contributing part of their salary and, in many instances, by directing their own investments.

As a Booz Allen Hamilton Holding employee, if you are among those who direct your investments, you will need to consider the investment objectives, the risk and return characteristics, and the performance over time of each investment option offered by your plan. Fees and expenses are one of the factors that will affect your investment returns and will impact your retirement income. This article will outline some of the major factors that may impact the severity of fees relating to your Booz Allen Hamilton Holding 401(k) plan:

'Fees and expenses are one of the factors that will affect your investment returns and will impact your retirement income.'

Funds that are “actively managed” (i.e., funds with an investment adviser who continually researches, monitors, and actively trades the holdings of the fund to seek a higher return than the market) generally have higher fees. The higher fees are associated with the more active management provided and sales charges from the higher level of trading activity. As a Booz Allen Hamilton Holding employee, you may want to consider how while actively managed funds seek to provide higher returns than the market, neither active management nor higher fees necessarily guarantee higher returns. 

Funds that are “passively managed” generally have lower management fees. Passively managed funds seek to obtain the investment results of an established market index, such as the Standard and Poor’s 500, by duplicating the holdings included in the index. Thus, passively managed funds require little research or trading activity. For Booz Allen Hamilton Holding employees, it is worthy to account for the information when deciding who will manage your funds, and if their rates are adequate for the services provided.

If the services and investment options under your plan as a Booz Allen Hamilton Holding employee are offered through a bundled program, then some or all of the costs of plan services may not be separately charged to the plan or to your employer. For example, these costs possibly may be subsidized by the asset-based fees charged on investments. Compare the services received in light of the total fees paid.

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Plans with more total assets may be able to lower fees by using special funds or classes of stock in funds, which generally are sold to larger group investors. “Retail” or “brand name” funds, which are also marketed to individual and small group investors, tend to be listed in the newspaper daily and typically charge higher fees. As a Booz Allen Hamilton Holding employee, you should inform your employer of your preference.

Optional features, such as participant loan programs and insurance benefits offered under variable annuity contracts, involve additional costs. Consider whether they have value to you as a Booz Allen Hamilton Holding employee. If not, let your employer know.

Retirement plans, such as 401(k) plans, are group plans. For those working in Booz Allen Hamilton Holding, your employer may not be able to accommodate each employee’s preferences for investment options or additional services.