401(k) Fee Impact Calculator

How this calculator works

This tool compares your projected 401(k) balance at retirement with and without plan fees. It uses the formula for compound growth with annual contributions, applying the expense ratio as an annual drag on returns. The "fee cost" represents the difference between the gross-return portfolio and the net-return portfolio over your chosen time horizon.

According to the Department of Labor, a 1% increase in fees can reduce retirement savings by 28% over 35 years. DOL Form 5500 filings require sponsors to disclose plan-level expenses on Schedule C, which PlainRetire tracks in its retirement_plans dataset. See our Data Methodology for how fee data is extracted from filings.

Understanding expense ratios

The average 401(k) plan charges 0.50% to 1.00% in total plan costs according to the BrightScope/ICI 401(k) Fee Report. Low-cost index fund plans average 0.25%, while plans loaded with actively managed funds and revenue-sharing arrangements can exceed 1.50%. Under ERISA Section 404(a), plan fiduciaries must ensure that fees are "reasonable" relative to services provided, but reasonable is not precisely defined, leaving participants to compare costs themselves.

Source: BrightScope, The BrightScope/ICI 401(k) Fee Report, 2023

Frequently asked questions

• What counts as a plan fee? Investment expense ratios, administrative fees, recordkeeping costs, and any revenue-sharing arrangements. All-in cost is what matters.
• Can I negotiate my 401(k) fees? Not directly as a participant. However, large plans (over 1,000 participants) tend to have lower per-participant costs due to economies of scale. The Plan Rankings page shows fee distributions by plan size.
• What is a reasonable expense ratio? The Department of Labor considers plans below 0.50% all-in cost to be competitive. Plans above 1.00% warrant scrutiny and potential fiduciary review.