Are 401(k) Fees Falling?

A recent report notes that the average expense ratios that 401(k) plan participants pay have fallen for the seventh year in a row, while much of the controversy around the fiduciary regulation revolves around whether removing the conflicts of interest will raise or lower fees. What’s your sense – are 401(k) fees falling?

OK, that report – from the Investment Company Institute – only dealt with one element of plan fees (mutual fund expenses), and even then we’re talking about averages. This week, we’d like to know what you’re seeing among the plans you work with – and want to work with.

Reply to this week’s NAPA Net reader poll at… and of course we’ll “wrap” it all up for you on Friday!

Add Your Comments

One Comment

  1. Jim Bush
    Posted June 19, 2017 at 11:27 am | Permalink

    Yes, definitely fees as a total percentage of plan assets are falling. We provide benchmark reports for our clients and I always review the prior year before presenting the current year. I think there are several reasons, but there is one nobody is talking about. Plans are growing. As they cross asset based fee breakpoints, the fees on new money are lower. I would also credit the 408(b)(2) regulations and the general trend away from revenue sharing arrangements.

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