Short answer: Fees in a Fidelity-run 401(k) come from three places: the plan’s administration and recordkeeping costs, the expense ratios of the funds you choose, and charges for services you use, such as a loan. Your employer, not Fidelity, decides which of these exist and who pays them. You can see your plan’s exact fees in the annual fee disclosure in NetBenefits. The biggest fee you control is usually the investment expense ratio.
The Three Kinds of 401(k) Fees
| Fee type | What it pays for | Who usually pays | How it shows up |
|---|---|---|---|
| Plan administration and recordkeeping | Running the plan: recordkeeping, legal, compliance, customer service | Employer, participants, or both, depending on the plan | A line item such as “record keeping fee” on your statement, or paid by the employer so you never see it |
| Investment fees | Managing the funds you hold (the expense ratio) | Participants, taken out of fund returns | Not billed separately; it lowers the fund’s returns |
| Individual service fees | Optional services such as loans, hardship withdrawals or BrokerageLink trades | The participant who uses the service | A one-time or per-use charge |
If you see a “record keeping fee” on your Fidelity statement, read our short guide to the Fidelity record-keeping fee.
How to Find Your Plan’s Fees in NetBenefits
- Log in to NetBenefits and open your workplace plan.
- Look for plan information and documents, then the participant fee disclosure or comparative chart. The label varies by plan.
- Find the table that lists each investment option’s expense ratio, and the section on administrative and individual service fees.
- Check your quarterly statement for any fee line items taken from your balance.
Employers must give you a fee disclosure each year, so if you cannot find it, ask your HR or benefits team. Fidelity cannot change your plan’s fees, because the employer sets them.
Why Small Fees Add Up
Fees are taken out of your returns every year, so they compound against you. Here is an illustration: a $25,000 balance growing for 35 years at a 7% return before fees, with no new contributions.
| Total annual fees | Balance after 35 years |
|---|---|
| 0.5% | $226,556 |
| 1.0% | $192,152 |
| 1.5% | $162,846 |
The 1.5% fee leaves about 28% less than the 0.5% fee. This is a simplified calculation with a constant return, not a forecast, but it shows why comparing expense ratios matters.
How to Lower the Fees You Pay
- Compare funds in your plan. Broad index funds and index-based target-date funds usually cost much less than actively managed funds. If your plan offers Fidelity ZERO funds, they have no expense ratio.
- Know the cost of loans and withdrawals. Some plans charge origination or annual loan fees. See our 401(k) loan guide.
- Watch short-term trading fees. Some funds charge a fee if you sell soon after buying.
- Be careful with BrokerageLink. It adds choice but also possible trading costs. See our BrokerageLink guide.
- Compare your plan to an IRA when you leave. A rollover can lower costs in some cases, but you give up plan features. See our rollover guide.
- Always capture the full match first. Employer matching contributions usually outweigh fee savings. See our contribution limits guide.
Do Former Employees Pay More?
In some plans, the employer pays part of the administration cost for current employees, and former employees pay it from their balance. If you leave a job and keep the account, check whether the fee changes. That is one factor in the decision to leave the money, roll it to a new plan, or roll it to an IRA.
Business Owners: What Does a Fidelity 401(k) Cost the Employer?
Employers pay setup and administration costs that vary by plan size and design, and new tax credits can offset them. See our small business 401(k) guide and our Solo 401(k) guide.
Frequently Asked Questions
What are the fees on a Fidelity 401(k)?
They depend on your employer’s plan. Common ones are plan administration and recordkeeping, fund expense ratios, and per-use charges such as loan fees.
Can I avoid the Fidelity 401(k) record keeping fee?
Usually not, because the plan sets it. You can reduce your total costs by choosing lower-cost funds and asking HR how fees are paid.
Where do I see my 401(k) fees?
In NetBenefits under your plan’s documents and fee disclosure, and on your statement for any fees charged to your account.
What is a good expense ratio for a 401(k) fund?
Lower is better. Broad index funds are often well under 0.2%, while actively managed funds often cost several times that. Compare the options in your own plan.
Does Fidelity charge fees for a 401(k) loan?
Some plans charge a loan fee. Check your plan’s fee disclosure or the loan screen before you confirm.
UseFidelity.com is an independent site and is not affiliated with Fidelity Investments. This article is general information, not tax, legal or investment advice. Figures last checked 3 November 2026.
Sources
- Fidelity NetBenefits participant fee disclosure notices published by employer plans
- Illustration calculated by UseFidelity: $25,000, 35 years, 7% return less fees, no contributions