Retirement Account Maintenance Fees
OppenheimerFunds collects annual maintenance fees for OppenheimerFunds-sponsored (RPSS) retirement accounts including Traditional/Rollover IRA, Roth IRA, Coverdell Education Savings Account, SEP IRA, SARSEP IRA, SIMPLE IRA, Profit Sharing Plan, Money Purchase Pension Plan, Single kSM, and 403(b) accounts.
Below is an overview that provides you with important information about how the annual maintenance fee process works.
Timing of the collection of the annual maintenance fee
The annual maintenance fee for all impacted accounts will be collected every December.
Collection of fees on redemption
The applicable annual maintenance fee is collected when an accountholder requests a full redemption of an OppenheimerFunds-sponsored retirement account. By collecting the annual maintenance fee when a full redemption is taken, OppenheimerFunds is able to cover the cost of tax reporting and regulatory requirements on accounts that take a full redemption prior to the December annual fee collection.
1. I have more than one retirement account with OppenheimerFunds. Does a fee apply to each of my accounts?
We collect an annual maintenance fee for each type of retirement plan you have. For example, if you have two 403(b) accounts, a Traditional IRA account and a SIMPLE IRA account you will be charged three times; once for the two 403(b) accounts, once for the Traditional IRA account and once for the SIMPLE IRA account. Plan types include Traditional/Rollover IRA, Roth IRA, Coverdell Education Savings Account, SEP IRA, SARSEP IRA, SIMPLE IRA, Profit Sharing Plan, Money Purchase Pension Plan, Single kSM, and 403(b) accounts. The number of funds you are invested in does not affect the annual maintenance fee.
2. What are the annual maintenance fees for the various retirement accounts?
Coverdell Education Savings Account
Profit Sharing Plan
Money Purchase Pension Plan
If the total value of the participant’s OppenheimerFunds retirement and non-retirement accounts is $50,000 or more, the annual fee is just $10. The fee is assessed once, regardless of how many Oppenheimer funds are invested in through that account.
3. Can you send me a bill instead of deducting it from my account?
No. Our systems cannot accommodate billing for this fee, but please note that the withdrawal of the maintenance fee is a non-taxable distribution and is not reported to the IRS.
4. Can I prepay the fee?
No. Our systems are unable to separate a fee payment from an account contribution.
5. What account/fund does my fee deduct from of and how is that account determined?
Fees are taken from Oppenheimer Cash Reserves or Oppenheimer Money Market Fund, if applicable. If not, the lowest valued fund account with assets to cover the fee is assessed next, and so on until the full fee amount is collected.
6. Does this apply to outside-sponsored plans with Oppenheimer fund investments?
No. This applies only to OppenheimerFunds-sponsored (RPSS) accounts for which OFI Global Trust Company is the trustee or custodian.
7. What if I have more questions or need other assistance regarding my OppenheimerFunds retirement account?
For additional assistance, please contact 1.800.835.7305.
This material is provided for general and educational purposes only, and is not intended to provide legal, tax or investment advice, or for use to avoid penalties that may be imposed under U.S. federal tax laws. Contact your attorney or other advisor regarding your specific legal, investment or tax situation.
MRF-2-5-9/11 May 20, 2011
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008