Online record keeper Human Interest has eliminated 401(k) transaction fees indefinitely.
The robo record keeper, which was founded in 2015 and provides services to small-employer 401(k) plans, eliminated more than 20 fees, including all distribution fees, rollover fees and other fees. The changes are effective Tuesday, a spokeswoman said.
"A 401(k) is a powerful savings vehicle but many people are not aware that it can come with unexpected financial penalties and punishments. What's worse is that these fees can disproportionately affect the people most in need of securing their financial future," said Jeff Schneble, Human Interest CEO, in a news release. "These fees are often unforeseen and tend to be levied at moments when people are already feeling some pain, such as a divorce or job loss. If you're in the process of a painful life upheaval, paying surprise fees can feel like salt in the wound."