{"id":876,"title":"Empower Retirement Plans: Where the Fees in Your 401(k) Actually Sit","slug":"empower-retirement-plans-where-the-fees-in-your-401k-actually-sit","lang":"en","description":"This article explains the main fee layers in an Empower-administered 401(k), including investment expense ratios, administrative and recordkeeping fees, and individual service charges. It also shows where participants can find their actual fees and how to review plan disclosures and fund expenses.","content":"

Most workers know how much they contribute to their 401(k) each paycheck. Far fewer can say what they pay to keep the account running. Fees are rarely dramatic in any single year, but they compound quietly. This guide explains the main fee layers in a 401(k) administered by Empower, one of the largest retirement plan recordkeepers, and where to find the numbers for your own account.

Fees Are Set by the Plan, Not Only the Provider

A key point is that your employer, not Empower alone, shapes what you pay. According to Empower's Retirement Fee Analyzer overview, administrative and advice fees passed on from plan administrators can range from 0% in large company plans to over 1% in plans at smaller companies. Two people with Empower accounts can therefore pay very different amounts, depending on how their employers negotiated.

The Three Layers of Fees

Investment expense ratios. Each fund charges a percentage of your assets annually, taken from the fund's returns and reflected in its expense ratio. One Bogleheads forum participant described an Empower-administered plan whose S&P 500 fund listed gross and net expenses of 0.51%. That is a single example, not a benchmark, but it shows where to look.

Administrative and recordkeeping fees. These cover the plan's operation. According to a Bogleheads discussion quoting Empower's disclosure language, general administrative expenses may be charged to the plan, deducted from other plan assets such as a forfeiture account, charged to individual accounts to the extent the sponsor does not pay them, or included in investment-related fees.

Individual service fees. These apply when you use a specific feature, such as advice, managed accounts, or a self-directed brokerage account.

A Concrete Example

Documents from public plans show how a fee schedule can look. In one state plan described in Empower's fee document, a 401(k) charged a flat $1 monthly fee, and a 0.03% asset-based fee was added later. For a $100,000 balance, that works out to $12 in the flat-fee year and $42 the following year ($12 plus $30). The same document notes participants still pay an investment management fee reflected in each fund's expense ratio, and a $50 fee applies to use the self-directed brokerage account. Your plan will differ, but the structure is representative: a small flat fee, a small percentage, and fund-level expenses on top.

Where Fees Can Be Easy to Miss

Some charges don't appear as a plain dollar line. According to Employee Fiduciary's guide to Empower 401(k) fees, a fee-consulting firm, revenue sharing and wrap fees are not disclosed as hard dollar amounts on Empower's fee disclosure but in other sections of the 408(b)(2) disclosure. Revenue sharing appears under payments to investment providers, and wrap fees, common when insurers use variable annuities instead of mutual funds, can appear as a \"Variable Asset Charge.\" The same source estimates about half of administrative fees charged by Empower are paid from fund expenses. Because that firm sells competing services and the post dates to 2023, treat its estimates as a prompt to check your own documents rather than a verdict.

Where to Find Your Actual Numbers

You are entitled to fee information. According to a 2026 overview of ERISA rights, Section 404(a)(5) requires plan administrators to send a fee disclosure at least annually, listing each investment option, its expense ratio, and any administrative fees charged to your account. For Empower plans, this often arrives as a PDF alongside quarterly statements, sometimes titled a \"Notice of Investment Returns & Fee Comparison.\" Empower also publishes guidance on reading the fee disclosure.

The same overview notes that Form 5500, filed with the Department of Labor by plans with more than 100 participants, is publicly available and reveals plan fees. It also says ERISA gives participants legal standing over excessive fees, and reports more than 120 class settlements totaling over $665 million since 2023.

Steps to Take

Download the most recent annual fee disclosure from your account.
List each fund you hold and its expense ratio.
Add any administrative fee shown for the plan.
Compare similar funds inside your plan, since index funds often carry lower expense ratios than actively managed ones.
Use Empower's Retirement Fee Analyzer to see the long-term effect.
Ask HR or the plan committee about fund choices and fee structure.

FAQs

Does Empower set my 401(k) fees?
Partly. Your employer negotiates the arrangement, so fees vary widely between plans.

What is an expense ratio?
The annual percentage of your fund balance deducted to run the fund.

Are administrative fees always charged to me?
Not always. Employers may pay some or all, or they may be paid from fund expenses or plan assets.

How often should I review fees?
At least annually, when the disclosure arrives.

Can I move money out to reduce fees?
Depends on plan rules. Ask about in-service rollovers and compare with an IRA, keeping tax rules in mind.

Conclusion

Fees in an Empower-administered 401(k) come in layers: fund expense ratios, plan administration, and optional services. Your employer's negotiated arrangement drives much of it, and the annual disclosure is the reliable way to see your own numbers. Reviewing it once a year and asking questions of your plan sponsor can protect returns over decades. For personalized guidance, consult a licensed financial professional.

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