You’ve taken a closer look at the 401(k) plan offered by your company and you’ve found out the worse:
It is very expensive.
401(k) plans are provided by employers as a benefit, much like insurance coverage or employee discounts. That means that of the employers that offer 401(k)s, no two employers will have the same plan.
The fact is:
401(k)s are not free to run.
Employers have to pay 401(k) administrators to set up and manage the plan. Some employers cover these costs. Others pass them on to their employees.
Typically, you also have to invest the money in your 401(k) into some type of mutual fund or money market account. These funds can charge significant fees as well.
All told, you could be paying huge fees to invest in your 401(k). This begs the question: how can you invest in a 401(k) with high fees?
Read more at My Bank Tracker.