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.

[{"selector":"#anim-ce616208-cf67-47c9-8f20-f718837e68a1","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-73685f68-5048-456b-bdae-54d04cb0a617","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Learn more

What Are Reasonable Fees for a 401(k)?

[{"selector":"#anim-27fd9767-c37b-469c-8954-b278f1a2a159","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-158f7d20-1033-4ae5-b862-530dd5ab178b","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Learn more

Choosing Lower-Cost Funds

[{"selector":"#anim-985ff8fb-f9d1-4ab3-8357-d13fd5554204","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-5e7ed0f8-f93d-4649-93b2-a3d694a1e03c","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Medium Brush Stroke Learn more

Why Fees Matter

[{"selector":"#anim-3df6442c-858b-4473-9690-dda755a36ec0","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-aada41e5-bc24-48ed-95f2-1b82805c5944","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Learn more

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

[{"selector":"#anim-8a35fee7-b5c4-44d1-a47b-2d9858856aa6","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-dd384f05-f147-40d7-80cf-01d8b9a4c0a0","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Medium Brush Stroke Learn more

SWIPE UP NOW TO READ MORE!

[{"selector":"#anim-7b327ce5-b9a9-448b-9223-9e8cf74496d8","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-8040d5a0-a82f-470f-b287-64ce5c13f9b1","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Learn more

Finding a financial advisor doesn’t have to be hard. SmartAsset’s free quiz matches you with fiduciary financial advisors in your area or who serve your area. If you are ready to be matched with financial advisors that can help you achieve your financial goals, take the quiz now.

[{"selector":"#anim-ae98eae6-1931-49e6-97e3-dbbe12d68a55","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f079380e-552e-45c7-9140-c140a47108d4","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-819589e4-6651-473b-8281-73005b8186b5","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ae0fc45e-a370-483a-96cc-82bb5943fabc","keyframes":{"transform":["translate3d(0px, 99.16371%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The surprising generation watching TV with subtitles The world’s best destinations for wildlife lovers

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.

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).

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

SWIPE UP NOW TO READ MORE!

Finding a financial advisor doesn’t have to be hard. SmartAsset’s free quiz matches you with fiduciary financial advisors in your area or who serve your area. If you are ready to be matched with financial advisors that can help you achieve your financial goals, take the quiz now.

READ MORE