That merely means describing the transaction fees you pay, such as sales commissions. They don't even have to tell you exactly what those expenses are. In any case, transaction fees are the least of it. In general, however, employers shouldn't have to pay more than 1 percent for everything, Butler says, and could pay much less. If your company doesn't give you a prospectus, get one from the fund itself.
Many large employers have low-cost, customized funds run by selected money managers.
The administrative fees are often paid by your employer. Increasingly, however, employers are passing part or all of this cost to you. Some companies tell you what percentage they take from your account. The plan's annual report discloses the total dollar cost of investment management and administration, along with other payouts. But it doesn't express the cost as a percentage of your account.