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Investment Fees and 401(k) Plans Ingles Markets

Healthcare Provider Update: Ingles Markets, a regional grocery store chain, partners with UnitedHealthcare for its employee healthcare benefits. As we look ahead to 2026, potential healthcare cost increases for Ingles Markets and similar employers are concerning. The projected rise in health insurance premiums linked to the Affordable Care Act (ACA) suggests many employees could see out-of-pocket costs soar by over 75%. This surge is driven by several factors, including higher medical expenses, the potential expiration of enhanced federal subsidies, and significant rate hikes from major insurers, all of which combine to create a challenging financial landscape for both employers and their employees. Click here to learn more

It is very important for Ingles Markets employees to know all the fees that are linked to their 401(k) plans to make sure they are not losing their retirement funds,” suggests Michael Corgiat of The Retirement Group, a division of Wealth Enhancement Group. “The decision on the fees is as significant as the decision on the investments themselves.”

'Brent Wolf from The Retirement Group, a division of Wealth Enhancement Group, points out that knowing all the fees that are associated with 401(k) plans is a great way to protect the retirement assets of Ingles Markets employees. He advises employees to find out more about the fees in order to better control their investments.

In this article, we will discuss:

1. Different Types of 401(k) Plan Fees: Note the three types of fees that are most common in 401(k) plans for Ingles Markets employees – Sales Charges, Management Fees, and Other Fees.

2. Impact of Management Fees on Investments: Learn how management fees can change and how they can affect the potential for your retirement investments to grow.

3. Analogies to Enhance Understanding: A metaphor can be used to explain the idea of 401(k) investment fees which means the expenses incurred in the maintenance of a classic car in order to be able to grasp the notion of these fees in the management of your retirement plan.

Aside from fees charged for administration of the plan, there are three basic types of fees that Ingles Markets employees may have to pay in connection with their 401(k) plan investment options. These fees, which have a variety of names, include Sales Charge, Management Fees, and Other Fees. 'Highly actively managed investment products will have higher fees because they require substantial management, research, and monitoring.'

Sales Charges Also referred to as commissions or load fees. These are the transaction fees that apply to Ingles Markets employees in the course of buying and selling shares. Depending on the particular investment product, they may be computed in a variety of methods. Management Fees Popular names include investment advisory fees, account service fees, or similar names. These are continuous expenses for managing the investment fund's assets.

They are typically expressed as a percentage of the fund's invested assets. Sometimes, management fees are used to cover administrative costs. The levels of management fees can vary depending on the investment manager and investment product. Higher-level management, research, and monitoring requirements usually lead to higher fees on investment products. Other Fees This category includes services involved in the day-to-day administration of investment products, such as recordkeeping, statement distribution, toll-free telephone numbers, and investment advice.

They may be expressed either as a fixed fee or as a percentage of the fund's total assets. It is crucial for a Ingles Markets employee to know the different fees that are incurred and how they are charged to avoid paying more than is necessary and being charged more than is necessary. For more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/the-401k-plan-fees-e-brochure.

Added Fact:

New data reveals that for 60-year-old individuals, it is important to take fees into account when planning for retirement for their 401(k) plans. According to a study conducted by the Center for Retirement Research at Boston College, even an apparently small amount of fee can have a major impact on the retirement assets. Specifically, the study found that a 1% difference in annual fees could lead to a 28% decline in the value of the retirement assets over a 35-year period. This is important because it highlights the need to understand and compare investment fees in order to achieve the maximum growth of a 401(k) plan.

Added Analogy:

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401(k) plan investment fees can be compared to the cost of maintaining a classic car. Just like a classic automobile, your retirement savings are something that you want to care for and protect. The sales charges are the price that you pay to purchase the vehicle just like the transaction costs incurs in the buying and selling of investment shares. The management fees, which are the costs of servicing and tuning a car, guarantee that your investment funds are well handled and watched over to enhance their performance. Meanwhile, the other fees, such as recordkeeping and administrative costs, are something that can be compared to the normal wear and tear and repair costs that come with owning a classic car. You will be able to consider yourself as an expert car enthusiast who knows how to look after their vehicle and make sure that it lasts and has the best value. As with any classic car, there are costs associated with your 401(k) investments and fees are something that should not be taken lightly in order to reach your retirement goals.

Sources:

1. 'Understanding Your Retirement Plan Fees.' U.S. Department of Labor , www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/a-look-at-401k-plan-fees . Accessed 8 Feb. 2025.

2. '401(k) Fees: Everything You Need to Know.' Investopedia , edited by Caleb Silver, Investopedia, www.investopedia.com/articles/personal-finance/061913/understand-your-401k-fees.asp . Accessed 8 Feb. 2025.

3. Boswell, Brian. 'Understanding Your 401(k) Fees: What’s Normal and Ways to Minimize.' Savvywealth , 13 Jan. 2025, www.savvywealth.com/understanding-your-401k-fees . Accessed 8 Feb. 2025.

4. 'How to Understand and Analyze 401(k) Fees.' GoBankingRates , GoBankingRates.com, www.gobankingrates.com/retirement/401k/common-401k-fees-chipping-away-retirement-savings/ . Accessed 8 Feb. 2025.

5. 'Understanding the Fees in Your 401(k) Plan.' AARP , AARP, assets.aarp.org/www.aarp.org_/articles/money/employerpensions/401k_fees.pdf. Accessed 8 Feb. 2025.

6. Center for Retirement Research at Boston College, 'The Impact of Expense Ratios on Retirement Wealth,' April 2022)

What type of retirement plan does Ingles Markets offer to its employees?

Ingles Markets offers a 401(k) retirement savings plan to its employees.

How can employees of Ingles Markets enroll in the 401(k) plan?

Employees of Ingles Markets can enroll in the 401(k) plan by completing the enrollment process through the company's HR portal or by contacting the HR department for assistance.

Does Ingles Markets provide any matching contributions to the 401(k) plan?

Yes, Ingles Markets provides matching contributions to the 401(k) plan, subject to certain conditions and limits.

What is the eligibility requirement to participate in the Ingles Markets 401(k) plan?

Employees of Ingles Markets typically become eligible to participate in the 401(k) plan after completing a specified period of service, as outlined in the plan documents.

Can employees of Ingles Markets change their contribution percentage to the 401(k) plan?

Yes, employees of Ingles Markets can change their contribution percentage to the 401(k) plan at any time, following the guidelines set forth in the plan.

What investment options are available in the Ingles Markets 401(k) plan?

The Ingles Markets 401(k) plan offers a variety of investment options, including mutual funds, target date funds, and other investment vehicles.

Is there a loan provision available in the Ingles Markets 401(k) plan?

Yes, the Ingles Markets 401(k) plan may allow participants to take loans against their account balance, subject to specific terms and conditions.

At what age can employees of Ingles Markets begin to withdraw funds from their 401(k) plan without penalties?

Employees of Ingles Markets can typically begin to withdraw funds from their 401(k) plan without penalties at age 59½, following IRS regulations.

How does Ingles Markets communicate changes to the 401(k) plan to its employees?

Ingles Markets communicates changes to the 401(k) plan through employee newsletters, meetings, and updates on the HR portal.

Are there any fees associated with the Ingles Markets 401(k) plan?

Yes, there may be administrative and investment fees associated with the Ingles Markets 401(k) plan, which are detailed in the plan documents.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Name of Pension Plan: Ingles Markets does not appear to have a traditional defined benefit pension plan. Instead, they offer a 401(k) plan with company matching. Years of Service and Age Qualification: Ingles Markets primarily offers a 401(k) plan rather than a pension plan. For specific qualifications related to pension plans, further details would need to be reviewed from additional sources or contact Ingles Markets directly. Name of 401(k) Plan: Ingles Markets 401(k) Plan. Who Qualifies: Employees of Ingles Markets who are at least 21 years old and have completed 90 days of service are eligible to participate in the Ingles Markets 401(k) Plan. 401(k) Plan Details: Matching Contributions: Ingles Markets offers a match of 50% on the first 6% of employee contributions. Vesting: The employee’s contributions are always vested; company contributions vest according to a specified schedule.

Layoffs and Restructuring: In 2023, Ingles Markets underwent a significant restructuring plan aimed at optimizing their operations. The company announced a reduction in its workforce in several departments to streamline processes and cut costs. This move was largely driven by the need to adapt to changing market conditions and enhance efficiency. As economic pressures continue, such restructurings become crucial for companies to remain competitive and financially stable.

Ingles Markets offers stock options and RSUs as part of its compensation package. The stock options typically include stock option grants with specific vesting schedules. RSUs are awarded to certain employees based on performance and seniority.

Health Insurance: Ingles Markets offers health insurance plans, including medical, dental, and vision coverage. They provide options for both employees and their dependents. Flexible Spending Accounts (FSAs): Employees can use FSAs for medical expenses. 401(k) Retirement Plan: Includes company matching contributions. Paid Time Off: Includes vacation days, personal days, and sick leave. Employee Assistance Program (EAP): Provides support for personal and professional challenges.