From what I’m able to glean from the story it’s looking like the 1% management fees for the 401k plan itself, not the funds that are held by the plan.
This is the part that makes me think they mean mutual fund fees:
“The higher fees often accompany funds that try to beat market indexes by actively buying and selling securities. Index funds, which track benchmarks such as the Standard & Poor’s 500, don’t require active management and typically charge lower fees.”
Here’s another similar story I just happened across:
And it says:
“Most fees —more than 80 percent of them — are covered by a plan’s ‘expense ratio.’ The expense ratio includes recurring fees you’re charged when you invest in a fund.”
Don’t they mean a “fund’s” expense ratio, rather than the “plan’s” expense ratio?
It’s just bugging me cuz I like accuracy. And these stories floating around lately make it sound like it’s fees related to just being in a 401k, when in fact I think they mean mutual fund fees. It’s like they’re dumbing it down on purpose for the low-information types.