Don't Let Hidden Fees Erode Your Retirement: Checking Your 401(k)

High fees in 401(k) plans can quietly drain thousands from retirement savings. ProPublica highlights simple steps to review and compare costs to ensure your money works harder for you.

Retirement savers often overlook the impact of fees on their 401(k) accounts. Even small percentages can compound over decades, reducing nest eggs by tens of thousands of dollars. ProPublica investigations reveal that many plans charge excessive administrative and investment fees without clear disclosure.

To check your fees, start by reviewing your plan's annual disclosure statement, often called a 404(a)(5) notice. Compare your fund's expense ratios against low-cost index options available elsewhere. Online tools from the Department of Labor can help benchmark costs against similar plans.

If fees seem high, contact your plan administrator to negotiate or switch options. Consider rolling over to an IRA with lower costs when leaving a job. Staying informed protects your future and holds providers accountable for fair practices.