Are (Your) Plan Participants Clueless About Fees?

A recent survey suggests that three-quarters of Americans are in the dark when it comes to 401(k) fees. Is that the case with the plans – and plan sponsors – you work with?

The TD Ameritrade survey of more than 1,000 investors found that the vast majority of people either erroneously believe they do not pay any 401(k) fees (37%), are unaware whether their plan has fees (22%), or do not know how to determine the fees (14%). And while about a quarter (27%) said they know how much they are paying in fees – well, you can’t help but wonder if they really do.

This week, we’d like to know about the participants – and plan sponsors – with which you work. Do they know how much they are paying? And what are participants doing with those 401(k) fee disclosures?

Reply to this week’s NAPA Net reader poll at https://www.research.net/r/29H9F5R.

And, of course, we’ll have it all wrapped up for you on Friday.

Add Your Comments

One Comment

  1. url url'>Tim Halchuck
    Posted February 5, 2018 at 10:26 am | Permalink

    We only use recordkeepers that fully disclose all fees and post them to the web and participant statements. We then always go over the costs in detail during the group meetings so that participants know what they will see. We have lost a few smaller plans to other advisers who presented quotes that listed very little or no fees but used ERISA Budget language, but we have gained far more than we lost by being open and upfront.

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