Do you know how much you’re paying in 401(k) fees?

If the answer is “no,” you’re not alone. Not only are you not alone, you’re in good company.

401(k) plans are the most common retirement vehicle for US workers, but half of participants admit they don’t know what fees they’re paying, according to a 2013 study by research firm LIMRA. More than twenty percent mistakenly think they don’t pay any fees. These fees – even a small percentage over a long period of time – can have a big impact on your retirement savings.

How to find out what fees you’re paying

Figuring out how much you’re paying in 401(k) fees isn’t always easy. Here are the best places to start:

• Check the prospectus. Along with historical investment performance, the prospectus will contain expenses associated with your investments. But the length and font size of some prospectuses can make them intimidating.
• Ask your employer. They are required to provide you information on your 401(k) plan. The information your employer provides will probably be more user-friendly than a prospectus. Ask for a copy of the annual notice showing investment options, fees, and expenses.
• Read your year-end statement. Most of us are guilty of just tossing it in the shred bin, but your year-end statement shows how your plan is performing as well as fee information.
• Use a free online tool. Morningstar and BrightScope are good resources. The former allows you to research investment fees while the latter rates and compares your company’s plan with those of similar companies. Also, the Employee Benefits Security Administration has a great resource called A Look at 401(k) Plan Fees.

Make the most of your 401(k)

You may find that the fees associated with your investments are low compared to others. But if the opposite is true, there are some options you can consider:

• Change your investment elections to funds with lower fees and equal return potential.
• Take advantage of your company’s 401(k) match, but consider a third party investment for any additional savings. There are many options including Roth or Traditional IRAs, annuities, mutual funds, and taxable investment accounts.
• Reallocate deferred compensation to your spouse’s plan if it’s more advantageous, i.e., reduce your deferral rate and increase your spouse’s deferral rate an equal amount.

Finding the fees associated with your 401(k) plan may not be at the top of your to-do list, but a little research could go a long way, possibly saving you thousands over the life of your plan. Like most financial matters, there are many things to consider before deciding to make changes to your 401(k) plan. Consult the appropriate professionals for advice specific to your situation.