How Much Does Fidelity Charge for 401k

Fidelity’s 401(k) plan offers various fee structures that vary depending on investment options and account features. For example, some plans may charge an annual administrative fee based on the total assets in the plan, typically ranging from 0.03% to 0.15%. Additionally, there may be investment fees associated with mutual funds or exchange-traded funds (ETFs) included in the plan. These fees can vary depending on the specific investment options selected. It’s important to carefully review the plan’s fee schedule to understand the potential costs involved before enrolling and making investment decisions.

Fidelity 401k Plan Fees

401k plans are an excellent way to save for retirement, and Fidelity is one of the leading providers of these plans. However, it’s important to be aware of the fees associated with a Fidelity 401k plan before you sign up.

Fees Assessed by Fidelity

  • Plan administration fees: These fees cover the cost of managing your plan, including tasks such as recordkeeping, participant communication, and investment management.
  • Investment fees: These fees are charged by the investment funds that you choose to invest your money in. They can include management fees, sales loads, and other expenses.
  • Transaction fees: These fees are charged for certain transactions, such as buying or selling investments.

Plan Administration Fee

Fidelity’s plan administration fee is tiered based on the size of your plan. The fee is calculated as a percentage of your plan’s assets under management (AUM). The following table shows the plan administration fee schedule:

Plan AUMFee
$0 – $5 million0.65%
$5 million – $10 million0.60%
$10 million – $50 million0.55%
$50 million – $100 million0.50%
Over $100 millionNegotiable

Investment Fees

Fidelity offers a wide range of investment options for your 401k plan. The investment fees vary depending on the fund you choose. Some funds have no fees, while others have fees as high as 2%. You should carefully consider the fees associated with each fund before you invest. You can find the fees for each fund on Fidelity’s website.

Transaction Fees

Fidelity charges transaction fees for certain transactions, such as buying or selling investments. These fees are typically small, but they can add up over time. You should be aware of the transaction fees associated with your plan before you make any trades.

Total Fees

The total fees you will pay for a Fidelity 401k plan will depend on the size of your plan, the investments you choose, and the transactions you make. You should carefully consider all of these factors before you sign up for a plan.

Fidelity 401k Fees: Understanding the Costs

Fidelity Investments is a leading provider of 401k plans, offering a range of investment options and services. Understanding the fees associated with your 401k is crucial for making informed financial decisions. Fidelity’s 401k fees can vary depending on the plan offered by your employer and the investment choices you make.

Employer Contribution Matching

Many employers offer matching contributions to their employees’ 401k plans. These matching contributions are typically a percentage of your salary, up to a certain limit. Fidelity does not charge any fees for employer matching contributions.

Investment Fees

  • Mutual Funds: Fidelity offers a wide range of mutual funds with varying expense ratios. Expense ratios cover the costs of managing the fund, including investment advisory fees and administrative expenses.
  • ETFs: Exchange-traded funds (ETFs) also have expense ratios, which are typically lower than those of mutual funds.
  • Managed Accounts: Fidelity provides managed account services, which include professional investment management. These services typically come with higher fees than passive investment options.

Other Fees

  • Administration Fees: Some 401k plans may charge administration fees to cover the costs of plan management and recordkeeping. These fees are typically deducted from plan assets.
  • Trading Fees: If you trade within your 401k account (e.g., buying or selling mutual funds), you may incur trading fees.
  • Loan Fees: If you take out a loan from your 401k account, you will be charged loan fees. These fees can include origination fees, interest charges, and late payment fees.

Fee Table

| Fee Type | Description | Range |
|—|—|—|
| Expense Ratios | Mutual Funds and ETFs | 0.05% – 1.50% |
| Management Fees | Managed Accounts | 0.50% – 1.50% |
| Administration Fees | Plan Management | $20 – $100 per participant per year |
| Trading Fees | Buy/Sell Orders | $0 – $50 per trade |

It’s important to note that fees can vary significantly based on the specific 401k plan and investment options you choose. Carefully consider the fees associated with your plan before making investment decisions.

Investment Options

Fidelity offers a wide range of investment options for 401(k) plans, including:

  • Mutual funds
  • Exchange-traded funds (ETFs)
  • Target-date funds
  • Managed accounts
  • BrokerageLink accounts

Expenses

The fees associated with a Fidelity 401(k) plan vary depending on the investment options you choose and the services you use. Some of the most common fees include:

  • Investment management fees: These fees are charged by the fund manager to cover the costs of managing the fund. The fees are typically expressed as a percentage of the assets in the fund.
  • Transaction fees: These fees are charged each time you buy or sell a fund. The fees are typically a flat fee per trade.
  • Administrative fees: These fees are charged by the plan administrator to cover the costs of administering the plan. The fees are typically expressed as a percentage of the assets in the plan.

In addition to these fees, you may also be charged fees for other services, such as financial advice or rollover assistance. It is important to compare the fees charged by Fidelity with those charged by other providers before you choose a 401(k) plan.

Fee TypeDescriptionTypical Fee
Investment management feesFees charged by the fund manager to cover the costs of managing the fund.0.05% to 1.00% of assets
Transaction feesFees charged each time you buy or sell a fund.$0 to $50 per trade
Administrative feesFees charged by the plan administrator to cover the costs of administering the plan.0.05% to 0.25% of assets
Financial advice feesFees charged by a financial advisor for advice and guidance.$0 to 2% of assets
Rollover assistance feesFees charged for assistance with rolling over money from another retirement account.$0 to $100

Fidelity 401k Fees

Fidelity does not charge any fees for managing your 401k account. However, there are some underlying investment fees that may apply, depending on the specific investments you choose.

Tax Implications of Fidelity 401k

Contributions to a Fidelity 401k are made on a pre-tax basis, meaning they are deducted from your paycheck before taxes are calculated. This can result in significant tax savings, as you will pay less in income taxes now.

Withdrawals from a Fidelity 401k are taxed as ordinary income. However, there are some exceptions to this rule. For example, withdrawals after age 59½ are not subject to the 10% early withdrawal penalty. Withdrawals for certain qualified expenses, such as medical expenses or education expenses, may also be exempt from taxes.

Investment Fees

  • Expense ratio: This is a percentage of your assets that is used to cover the costs of managing the fund.
  • Load fee: This is a one-time fee that is charged when you purchase or sell a fund.
  • Transaction fee: This is a fee that is charged when you make a trade.

Fee Structure

Fee TypeAmount
Expense ratio0.01% – 1.00%
Load fee0% – 5%
Transaction fee$0 – $50

It is important to compare the fees of different Fidelity 401k plans before you enroll. You should also consider the investment options that are available in each plan.

Welp, there you have it, folks! I hope this little dive into Fidelity’s 401k fees has been helpful. Remember, it’s always a good idea to compare options and shop around to find the best fit for your financial goals. Whether you’re just starting out with retirement planning or fine-tuning your existing strategy, knowledge is power. Thanks for sticking with me, and don’t forget to drop by again soon for more money talk and financial adventures. Until next time!