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I don't really see how that counts as "401k fees", since those funds charge the same expense ratio to people who buy them on the open market. Investment choice
by vonmoltke 7y ago
I don't really see how that counts as "401k fees", since those funds charge the same expense ratio to people who buy them on the open market. Investment choice, or lack thereof, is an issue that goes beyond fund fees.
- whatok 7y agoSome 401ks have access to different share classes that have (nearly) identical funds with different fee structures.
- MrRadar 7y agoThis. The employees participating in the 401k plan don't choose which funds the plan includes, HR people (who are often not very well-versed in investing) do. Those HR people will choose these high-ER funds because the 401k provider usually offers discounts to their direct costs for having them, essentially shifting the cost of running the 401k plan from the employer to the employees.