Author Topic: Question on 401k fees  (Read 1203 times)


  • 5 O'Clock Shadow
  • *
  • Posts: 40
Question on 401k fees
« on: April 12, 2016, 11:12:16 AM »
I often read that 401k's are bad because they have high fees.

Does that simply mean that the only funds that some 401ks offer have high expense ratios? Or is there some other hidden 401k-only fee that I'm unaware of?


  • Walrus Stache
  • *******
  • Posts: 6635
  • Age: 37
  • Location: Seattle, WA
    • My blog
Re: Question on 401k fees
« Reply #1 on: April 12, 2016, 11:14:37 AM »
Each 401(k) plan is different. Some only have funds with higher fees, where even an S&P 500 index fund might charge 0.5% or more. Others have annual administration fees. Other 401(k) plans offer Vanguard institutional class funds with lower expense ratios than you can get as an individual investor. It all depends on the arrangement your employer offers.