The U.S. House Education and Labor Committee is currently meeting to debate 401(k) fees, which are often hidden and higher than they need to be.

By one consultant’s estimation, someone with a current $30,000 balance contributing $150 per pay period for the next 25 years will earn about $500,000 if their portfolio returned 8 percent.

Add 1 percent in fees and the balance drops $80,000. Add another percent and the balance is reduced by $150,000.

Yikes.

Do you know how much you pay in 401(k) fees? Have you tried to find out?

I’ve looked at my company’s Form 5500, which discloses some fees under ERISA, but I’ll tell ya, it’s

This entry was posted on Tuesday, March 6th, 2007 at 11:55 am and is filed under fees, retirement. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.