TD Ameritrade has partnered with FeeX, Inc., to launch a fee analyzer tool to give participants insight into their 401(k), 403(b) or other defined contribution (DC) plan.
The tool considers administration and individual mutual fund fees and can show participants how these fees compare to fees in an individual retirement account (IRA).
In line with this launch, TD Ameritrade conducted a survey of 1,000 investors and found that only 27% know how much they are paying in 401(k) fees. Thirty-seven percent mistakenly think they are not paying any fees, 22% do not know if their plan has a fee, and 14% do not know how to determine the fee.
“While often overlooked, fees can put a drag on investment performance and impact portfolio value over the long term,” says Matthew Sadowsky, director of retirement and annuities at TD Ameritrade.