Found a hidden fee in my 401k statement

I was looking at my quarterly statement from Fidelity last night. Noticed a line item called 'recordkeeping fee' for $12.50. Had no idea what it was. Found a thread on Bogleheads explaining most plans have these buried in the fine print. Check your last statement. Anybody else getting hit with these small fees?

2 comments

2 Comments

ryan_carr5918d ago

Recordkeeping fee" is just a fancy name for "we charge you extra" basically.

schmidt.grant18d ago

I saw this article the other day that broke down what these fees actually cover. Turns out a lot of it is just paying for the paperwork and storage of all those records they have to keep on you. But then you look at the number and it's like 50 bucks a year just to have them shuffle some papers around. It's a total money grab dressed up in legal talk. My buddy had a 401k from an old job and they were hitting him with this fee too. He finally moved it to an IRA and poof, no more recordkeeping nonsense. It's just another way for these companies to squeeze a little more out of you without really doing anything extra.