The Structure of 401(k) Fees


The brief’s key findings are:

  • 401(k) fees are complex and may not closely correspond to costs.
  • Fees also raise design issues, such as transfers from high-balance to lowbalance participants and from participants to non-plan investors.
  • Better disclosure could help employers and participants avoid unreasonable costs.
  • Policymakers may also want to opine on the transfers embedded in today’s fee structure.