What's a 'good' 401(k) expense ratio?

Under 0.30% all-in (funds + recordkeeping) is excellent. 0.30–0.60% is reasonable. Above 1% is worth flagging with HR or rolling out after you leave the employer.

How do I find my 401(k) fees?

Check the annual 404(a)(5) fee disclosure your plan sends, or log in and download the most recent participant fee notice. It lists every fund's expense ratio plus any flat or asset-based plan fees.

Cost · Retirement

How much does a 401(k) cost in fees?

By Yinka Olayokun Published April 8, 2026 Updated May 18, 2026

Direct Answer

A typical 401(k) costs between 0.20% and 1.50% of assets per year, all-in. Index-fund-heavy plans at large employers often run under 0.30%; small-plan menus stuffed with active funds can exceed 1.50%. On a $100,000 balance, that gap costs about $1,200 a year — and roughly $86,000 over 30 years at a 7% return.

Cost scenarios

Scenario	Cost	Notes
Low-cost large plan (Vanguard/Fidelity index funds)	0.20% / year	~$200/yr per $100k
Average plan	0.55% / year	~$550/yr per $100k
Small employer, active funds	1.50% / year	~$1,500/yr per $100k

What you actually pay

401(k) costs come in three layers: investment expense ratios on the funds you choose, recordkeeping/administration fees the plan charges to manage the accounts, and (sometimes) individual service fees like loan origination. The figures employers disclose on the 404(a)(5) participant notice combine the first two — that's the number to compare across plans.

How to cut your 401(k) fees today

Move from actively-managed funds to the lowest-expense index option on your plan menu (often a target-date or total-market fund). After leaving an employer, rolling an old 401(k) into an IRA with a low-cost broker typically drops total costs by 0.30–0.80% per year.

Frequently Asked Questions

What's a 'good' 401(k) expense ratio?: Under 0.30% all-in (funds + recordkeeping) is excellent. 0.30–0.60% is reasonable. Above 1% is worth flagging with HR or rolling out after you leave the employer.
How do I find my 401(k) fees?: Check the annual 404(a)(5) fee disclosure your plan sends, or log in and download the most recent participant fee notice. It lists every fund's expense ratio plus any flat or asset-based plan fees.

Sources

401(k) Plan Fees Disclosure Rule (DOL 404(a)(5)) , U.S. Department of Labor. Verified May 10, 2026.

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