My employer recently added a 457b plan as an option, and I was very excited because all of our 403b options are terrible. After spending quite a bit of time on the phone with TIAA-CREF (the company servicing our 457b plan), I found out that my employer has added extra fees to the otherwise very good options, and now I'm not sure anymore if it's such a good deal, or if I'm overreacting.
Here are the specifics: I want to open a 457b account and put my money into the Vanguard index funds offered and/or the Vanguard Wellington fund. Naturally, they all have very low fees, most around 0.20%. It turns out, though, that my employer assesses a 0.37% fee quarterly on any money held in the 457b. (Whhhyyyyy???) It pisses me off that my employer is basically trying to make money on employee contributions, but on top of that, it seems like 0.37% assessed quarterly will end up effectively amounting to more than 0.37%, right? Do correct me if I'm wrong on that.
So now I'm left wondering if it is still such a good deal, and if I can move past my irritation at my employer for doing this. Thoughts?