Percentage = [(56/Capital) + 0.13%] 56 = cost to employer Capital = how much the employer has in the 401k 0.13% = average fund fee So if Capital = 200k Per

Percentage = [(56/Capital) + 0.13%] 56 = cost to employer Capital = how much the employer has in the 401k 0.13% = average fund fee So if Capital = 200k Percentage = [56/200k + 0.13%] = 0.028% + 0.13% = 0.16% My guess is that they're focusing on new plans, not allowing rollover from previous plans and not allowing employees to keep the plan after they leave the company. In this situation they're able to have mostly savers with low or very low balances, and they charge on average higher fees than Vanguard and others.