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sullivanke

New Axa 403b(7) Offering?

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Very hesitant to believe anything that comes from this company but was wondering if anyone on hear has heard anything about this new plan in light of the new IRS changes wihtin School Districts and how I can investigate further to check for validity.

THANKS>

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"just wanted to keep you updated on the plan . Per the district's request, AXA will be offering a new 403b7 low cost direct option to the district. Companies will include Fidelity, etc. We expect to have it available this month.

 

I know this is something you were interested in considering. Your current assets at AXA can be rolled into the new plan, when available

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After this chain of communication I inquired about fee structure and was fed the following response:

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"The program will be R shares. This is the way many 401k plans are structured, funds are offer at NAV(no sales load) and there is an administrative wrap fee (0.06% is our expectation). You would enroll online directly vs. thru a sales rep. "

 

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Hi sull,

What about 12b fees, actual cost of the mutual fund and the revenue sharing embedded? Then add all of the fees. You want to know what the participant actually pays. Plan administrators love to focus in on only the "low fee" mutual fund price. This an incomplete picture.

Remember the plan administrators and TPA make their money by practicing omission.

Look at the discussion at Morningstar on R3 share class.

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