Since 2012 with fee disclosure regulations, we have seen 401(k) fee compression and the latest 401(k) Averages Book shows that it’s continuing.
Among the key findings in the newest edition of the 401(k) Averages Book:
- Large 401(k) plan fees: Fees for larger plans with an average range of 1,000 participants and $50 million in assets declined from 0.90% to 0.88% in 2021. It was 0.95% in 2017.
- Small 401(k) plan fees: Fees for plans with an average range of 100 participants and $5 million in assets declined from 1.20% to 1.19%. In 2017, it was 1.25%. Note the huge difference in fees as compared to larger plans.