2% seems high, but you need to be careful. During bubble-1, the startup I was working ended up soliciting feedback on the option proposed by our payroll compan

2% seems high, but you need to be careful. During bubble-1, the startup I was working ended up soliciting feedback on the option proposed by our payroll company (I believe). Most of the "management fees" on the funds were in the 1-2.5% range. I went to the morning star website and showed what poor ratings this batch of funds got as well as pointed to some fidelity/vanguard funds that were in the < 0.5% range for fees, yet in the same class. In the end, we ended up with better options. You need to pay attention to these things.