Overlooking this 401(k) detail could cost you big during retirement

A 401(k) plan doesn’t have an expense ratio, per se, but the overall  cost of the plan includes the expense ratios of the funds in an  investor’s account, as well as other charges.

What Are Reasonable Fees for a 401(k)?

To determine the amount you’re paying for a 401(k) plan, divide the total plan cost (usually available on your 401(k) statement) by your total investment.

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Choosing Lower-Cost Funds

Actively managed funds have a fund manager who employs different buying and selling strategies.

Why Fees Matter

A lower expense ratio could help an investor maximize their 401(k).

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Look closely at 401(k) participant fee disclosure notices, which participants should receive at least annually with any plan.

How to Reduce Your Expense Ratio


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