401(k) fees: A breakdown of 401(k) plan costs
401(k) fees: Revenue sharing
Revenue-sharing fees are built into the expenses participants pay for mutual funds. Though they are bundled into the cost of investments, revenue-sharing fees pay service providers other than the investment manager. These fees sometimes offset administrative costs, with the remainder credited back to the plan. Other times they line the pockets of third parties with no fiduciary obligations to employees.