What you need to know about the fees on your retirement account

September 2, 2021

Contributing to a 401(k) plan is one of the most efficient ways to accumulate wealth for retirement. But new data reveals that many savers may not be getting the most out of their employer plans.

That's because roughly 40% of 401(k) plan participants don't fully understand what fees they're paying, according to a report released Thursday by the Government Accountability Office.

Are you in the dark about your 401(k)?

About 87 million workers have access to 401(k)s. But a lack of knowledge with regard to 401(k) fees could cause savers to lose out on a lot of money over time.

There are two kinds of 401(k) fees you'll need to look into: administrative and investment. Administrative fees aren't really within your control (though you can opt to save in an IRA over a 401(k) if your plan's fees are out of hand). But you do have the ability to keep your investment fees to a minimum.