3 Steps to Reducing 401k Fees

Your retirement funds can be significantly eaten up by 401k fees. Many people have no idea how much they are paying in 401k fees, and that can cost them. If you are interested in reducing your 401k fees, here are a few steps that you could try.

1. Stop Moving Money Around

Many times, when you buy and sell securities within your 401k, you will incur fees. If you would leave your money in a certain type of investment over a longer period, you could minimize many of these fees. Choose a few different investments and stick with them over the long term.

2. Talk to Employer

Ask your employer about the fees that are being charged by the 401k provider. You could simply send an e-mail to your human resources department or to the owner of the company if you work for a small company. There will generally be a fee schedule you can see. This may get them thinking about the fees, and they might become interested in shopping around for bids.

3. Negotiation

Many times, when you talk to your employer, they will talk to your 401k provider about the fees. If the fees are too high, the employer may be able to negotiate lower fees from the provider.

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