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Factors That Impact 401(k) Fees For Peabody Energy Employees

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More and more Peabody Energy employees are investing in their futures through 401(k) plans. Peabody Energy 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 Peabody Energy 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 Peabody Energy 401(k) plan:

'Fees and expenses are one of the factors that will affect your investment returns and will impact your retirement income.' man in white dress shirt holding black pen

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 Peabody Energy 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 Peabody Energy 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 Peabody Energy 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 Peabody Energy 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 Peabody Energy employee. If not, let your employer know.

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

What is the primary purpose of Peabody Energy's 401(k) Savings Plan?

The primary purpose of Peabody Energy's 401(k) Savings Plan is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax basis.

How can employees at Peabody Energy enroll in the 401(k) Savings Plan?

Employees at Peabody Energy can enroll in the 401(k) Savings Plan by completing the enrollment process through the company's benefits portal or by contacting the HR department for assistance.

Does Peabody Energy offer a company match for 401(k) contributions?

Yes, Peabody Energy offers a company match for 401(k) contributions, which helps employees increase their retirement savings.

What is the maximum contribution limit for Peabody Energy's 401(k) Savings Plan?

The maximum contribution limit for Peabody Energy's 401(k) Savings Plan is determined by the IRS and may change annually; employees should check the current limits for the specific year.

Can employees at Peabody Energy change their contribution percentage at any time?

Yes, employees at Peabody Energy can change their contribution percentage at any time, typically through the benefits portal or by contacting HR.

What investment options are available in Peabody Energy's 401(k) Savings Plan?

Peabody Energy's 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Is there a vesting schedule for the company match in Peabody Energy's 401(k) Savings Plan?

Yes, Peabody Energy has a vesting schedule for the company match, meaning employees must work for the company for a certain period before they fully own the matched contributions.

How can employees at Peabody Energy access their 401(k) account information?

Employees at Peabody Energy can access their 401(k) account information through the company's benefits portal or by contacting the plan administrator.

What happens to Peabody Energy's 401(k) Savings Plan if an employee leaves the company?

If an employee leaves Peabody Energy, they have several options for their 401(k) savings, including rolling it over to another retirement account, cashing it out, or leaving it in the Peabody Energy plan if allowed.

Are there loans available against the 401(k) balance at Peabody Energy?

Yes, Peabody Energy's 401(k) Savings Plan may allow employees to take loans against their account balance, subject to specific terms and conditions.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Peabody Energy announced significant restructuring plans in 2024, including job cuts and the closure of some mining operations. This decision aims to streamline operations and reduce costs amid fluctuating coal prices.
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For more information you can reach the plan administrator for Peabody Energy at , ; or by calling them at .

*Please see disclaimer for more information

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