Cost matters when saving for retirement! When 401(k) provider fees are paid from plan assets, they can dramatically handicap the growth of your account over time.
The following table demonstrates this principle by showing how different 401(k) provider fees would affect a 401(k) participant’s account balance after 40 years of saving - assuming $5,000 in annual contributions and a 7% annual rate of return. The provider fees came from a recent small business 401(k) fee study. If no fees were paid, the participant would have $1,103,085.27 account balance.
