401(k) Fees Fall Further

Data shows that 401(k) fees are declining across the board – but wide ranges persist.

The average total plan cost for a small retirement plan (100 participants/$5 million in assets) declined from 1.28% to 1.25% over the past year, while the average total plan cost for a large retirement plan (1,000 participants/$50 million in assets) declined from 0.97% to 0.96%, according to the newly released 17th edition of the 401k Averages Book.

Not surprisingly, smaller plans are paying more, at least as a percentage of assets. The report notes that the average cost for a micro plan (10 participants and $500,000 in assets) is 1.85%, while the small plan and large plan averages are 1.25% and 0.96%, respectively.

The book shows the range between the high and low total plan costs on a small plan is 0.46% to 1.69%, while a large plan is 0.28% to 1.21%.

The 17th edition of the 401k Averages Book is available for $95 and can be purchased by calling (888) 401-3089 or online at http://www.401ksource.com.

Add Your Comments

One Comment

  1. Jack Towarnicky
    Posted March 11, 2017 at 3:24 pm | Permalink

    How much of the decline occurred as a result of adding indexed investments, replacing active investments?

    How much of the decline occurred because of the combination of the shift to per capita fees coupled with increased average account balances?

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