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How much is your 401(k) fee really costing you?

The average employer 401(k) charges 0.85% annually in combined fund + admin fees. A Fidelity or Vanguard IRA with index funds costs 0.05%. On a $200,000 balance over 20 years, that difference compounds to over $80,000 — money that goes to the plan administrator instead of your retirement.

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All-in: fund expense ratios + admin fees. Check your plan's fee disclosure (ERISA 404a-5). If unknown, use 0.85%.

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Where to find your plan's actual fee

  1. ERISA 404a-5 fee disclosure— Your plan administrator is required by law to send you an annual fee disclosure. Check your email or plan portal for “participant fee disclosure” or “404a-5 notice.” It lists the expense ratio for each fund plus any admin fee.
  2. BrightScope or FeeChecker — Third-party databases that index plan-level fees from public filings. Search your employer name to see how your plan compares to peers.
  3. Your fund's expense ratio— Log into your plan, find the fund you're invested in, and look for “expense ratio” or “annual operating expenses.” Add any separate admin or recordkeeping fee (often $25–$100/yr flat or 0.10–0.30% of balance).

This calculator provides an educational estimate of fee drag. It assumes a constant balance (conservative — balances typically grow) and compounds the annual fee savings at 7% real return. It is not a projection of actual investment performance. Verify your plan's exact fee with your plan administrator before making rollover decisions.