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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.