Do you know how much your 401(k) is costing you? According to a new report by Demos - a non-partisan research organization - the average American couple could pay nearly 155,000 dollars in fees for their 401(k) plans over their careers. That's a reduction of their eventual nest egg by more than 30-percent!
A study by the Government Accountability Office last month found that many employers did not understand the fees that 401(k) providers charge their workers. The U.S. Labor Department will begin requiring extensive disclosure of all 401(k) charges in July. Mutual-fund firms and other 401(k) companies will have to disclose all fees to employers, and employers will have to pass that along to their workers.