Many retirement savers have no clue how much the fees are (or if there are any at all) for their 401(k), according to a Wall Street Journal blog article. The article cites research from the National Association of Retirement Plan Participants (NARPP) in which more than half of working Americans (58%) still don’t realize they are paying fees on their workplace retirement savings plans.
Many of those workers might be surprised to learn how much they are paying to keep the account:
The irony is that those participants that think they pay nothing in fees account for about $35 billion in fee-revenue annually, or $835 per unwitting participant, according to the NARPP study.
The article points out regulations were created in 2012 to require financial institutions to make it easier for consumers to understand fees associated with their accounts. But as the data suggests, many consumers are still in the dark about what they’re paying for.
While self-directed 401(k)s
are different than traditional 401(k)s because they require more oversight and a custodian that can hold the account, Equity Trust offers a fee schedule
that clearly illustrates what it costs to hold a 401(k) with the company. This removes any unknowns about the cost of holding an account.
Learn more about what an Equity Trust account fee covers – schedule a free consultation
with a Senior Account Executive.