Why Your 401k Plan May Be Overpaying for Recordkeeping

In this episode, Lucas and Luna dig into a hidden cost in many 401k plans: recordkeeping fees that are bundled into investment funds rather than charged transparently. They explain how the Department of Labor's fee disclosure rules from 2012 were supposed to help, but a common practice called 'revenue sharing' still obscures what participants actually pay. Using the example of a mid-sized company with $50 million in plan assets, they show how excess fees can compound into tens of thousands of dollars lost over a career. Lucas walks through how to read a 408(b)(2) fee disclosure and compare it to a benchmark like the BrightScope or NAPA average. The hosts also discuss why smaller plans are most vulnerable and what a plan fiduciary should ask their provider. If you've ever wondered why your 401k statement lists 'other expenses' or why your plan's target-date fund has a higher expense ratio than the retail version, this episode is for you. #401k #RecordkeepingFees #RevenueSharing #FeeDisclosure #RetirementPlan #PlanFiduciary #BrightScope #NAPA #InvestmentFees #HiddenFees #ParticipantCosts #DepartmentOfLabor #408b2 #TargetDateFund #ExpenseRatio #EmployerPlan #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo