It’s nearly impossible for most 401(k) participants to determine how much they pay in fees.  Those fees are not typically disclosed to investors.  But a bright light is about to shine in this dark corner as new Labor Department rules will require 401(k) fee disclosures.

According to the Investment Company Institute, participants of small 401(k) plans (100 participants) pay on average 1.30% per year.  Large plans (1000 participants) typically charge 1.08% per year.

This transparency to the actual costs will put pressure on employers and plan providers to exercise better due diligence.  This includes switching to lower cost funds, combining inexpensive funds with personalized advice, and creating simple disclosure statements.