Author Topic: Administrative And Record Keeping Fee on A 401(k) - What's High, Low?  (Read 1089 times)

Ramza Beoulve

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I was reading through my annual 401(k) documents and I noticed the sections on the typical fees.

  • Administrative Fee - 0.70%
  • Recordkeeping Fee - $29.95 per year
I've only been with one employer so I don't know the relative cost if this is high, medium or low.

"On average, expenses associated with the administration of the plan are currently approximately 0.70% of participant account balances. There is a quarterly fixed fee charged to you account for recordkeeping services and most other expenses are allocated to accounts on a proportionate basis."
« Last Edit: January 07, 2016, 08:14:59 PM by Ramza Beoulve »

seattlecyclone

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Re: Administrative And Record Keeping Fee on A 401(k) - What's High, Low?
« Reply #1 on: January 08, 2016, 09:25:52 AM »
Seems high. My employer is a giant megacorp so it has certain economies of scale, but I'm only charged a $20 annual fee and no percentage fee on top of the very cheap fund expense ratios.

Murse

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Re: Administrative And Record Keeping Fee on A 401(k) - What's High, Low?
« Reply #2 on: January 08, 2016, 04:55:17 PM »
I was reading through my annual 401(k) documents and I noticed the sections on the typical fees.

  • Administrative Fee - 0.70%
  • Recordkeeping Fee - $29.95 per year
I've only been with one employer so I don't know the relative cost if this is high, medium or low.

"On average, expenses associated with the administration of the plan are currently approximately 0.70% of participant account balances. There is a quarterly fixed fee charged to you account for recordkeeping services and most other expenses are allocated to accounts on a proportionate basis."

Just being frank, the fees are high but at the same time you should still be coming out way ahead depending on your income.