It’s not a question that keeps most people up at night — but maybe it should. Or perhaps a better question is this: did you know that 401(k) plans have fees associated with them? If you didn’t, you’re in good company. In fact, seven in 10 people didn’t realize that 401(k) plan providers charge fees to participants, according to a recent AARP study.
401(k) plans are still a powerhouse for your retirement funding, especially when some of your contributions are matched by your employer. But over decades, what seems like a small amount can add up big time…to the tune of thousands of dollars — or more. Want to know how much?
Use AARP’s 401(k) fee calculator at www.aarp.org/401kfees to find out about the potentially hidden costs you may not have noticed in your 401(k) plan’s fine print. Using the online calculator is free, quick and easy. You’ll just need your 401(k) statement to get started to quickly see how differences in costs can add up over time.
After you explore the fee scenarios, check out other tips to help make the most of your 401(k). Every dollar makes a difference, so make your dollars work for you.