How to Find Out What Your 403(b) Is Actually Charging You
If you cannot see every fee on your 403(b) in under 10 minutes, your plan is deliberately making it hard. Here is exactly where to look. Six steps, then six actions if you do not like what you find. Updated 17 April 2026.
The 6-step fee audit
Pull your Summary Plan Description (SPD)
The SPD is the plain-English explanation of your retirement plan. Every ERISA plan must provide it free on request. Governmental and church plans may not be required to provide one, but many do.
Where to get it: ask HR, check your provider's online portal, or look in your new-employee welcome packet. It is usually a PDF of 30-100 pages.
What to find: search for the sections labelled 'Fees and Expenses', 'Investment Options', or 'Plan Costs'. These sections should list the investment funds available and their associated charges. If you cannot find fee information in the SPD, that is itself a red flag.
Find Form 404a-5 (Participant Fee Disclosure)
ERISA plans must provide this disclosure annually to all active participants. It is required under 29 CFR 2550.404a-5 regulations. Governmental and church plans are exempt from this requirement.
What it shows: a table of every investment option in the plan with its expense ratio, any additional charges, the benchmark for comparison, and 1-, 5-, and 10-year performance data.
If you have not received this document in the past 12 months, ask HR for it. Plan administrators are legally required to provide it. If they cannot produce it, escalate: this is a compliance failure for ERISA plans.
Check the fund prospectuses
Every fund in your plan has a prospectus. It discloses the exact expense ratio. For annuity sub-accounts, this is called a 'prospectus and statement of additional information'.
What to look for: the line labelled 'Total Annual Fund Operating Expenses'. This is what the fund charges. Anything over 0.5% is worth questioning. Anything over 1% needs a very good reason.
Where to find it: on your plan provider's website under each fund option, or directly at the fund company's website. EDGAR (sec.gov/edgar) has all registered fund prospectuses.
Identify annuity-specific charges
If your plan uses annuity contracts, there are additional layers of charges beyond the fund expense ratio. Look for: Mortality and Expense (M&E) charge (often 0.5-1.5%), Administrative expense charge (additional 0.1-0.5%), Rider charges if you have any optional features (0.5-1.5%), Surrender charges (declining penalty if you withdraw or transfer).
The annuity contract itself (not the fund prospectus) should list these charges. Request a copy of the annuity contract from your provider or HR.
Add the M&E charge plus the rider charges plus the fund expense ratio to get your true all-in cost. This is the number that matters.
Compare to benchmarks
Once you have your all-in cost, compare it to: institutional index fund expense ratios (0.03-0.05%), retail index funds such as Vanguard Total Market (0.03%), target-date retail funds (0.1-0.5%), variable annuity industry average (approximately 2.2% all-in per FINRA data).
A good 403(b) plan should be able to offer you funds under 0.2% all-in. If your cheapest option is above 0.8%, you are in an expensive plan.
Calculate your actual all-in cost
Multiply your current account balance by your all-in fee percentage to see what you pay per year in absolute dollars. Example: $80,000 balance x 2.0% fee = $1,600 per year in fees. Over 30 years at 7% return, that compounded fee drag costs approximately $195,000 in lost growth.
Use our calculator at /calculator to model your exact situation with your balance, contribution rate, and fee percentages.
What to do if you find high fees
Six options ordered by effort. Start with the easiest.
Switch to a lower-fee fund within your existing plan
Many 403(b) plans offer both annuity products and a mutual fund window. Ask HR: 'Does my plan have a 403(b)(7) mutual fund option?' If yes, you may be able to move your balance to index funds without leaving the employer plan. This avoids surrender charges.
Complain to HR or your plan committee
Plan sponsors have a fiduciary obligation to monitor plan costs under ERISA. Putting your concern in writing creates a paper trail. District unions and faculty associations have successfully pressured employers to add low-cost providers.
Contribute only to the employer match, then max an IRA
If you are stuck in a high-fee plan, get the full employer match (free money), then direct additional retirement savings to a Traditional IRA or Roth IRA at Vanguard or Fidelity. IRA contribution limit is $7,000 in 2026 ($8,000 if 50+).
Roll over previous employer accounts
You probably cannot roll over your current employer's 403(b) while still employed (unless your plan allows in-service withdrawals after age 59.5). But any previous-employer 403(b) or 401(k) can be rolled to an IRA immediately for lower fees and more investment choice.
Raise with the plan fiduciary or file a complaint
ERISA plan participants can contact the Department of Labor's Employee Benefits Security Administration (EBSA) if they believe their plan fiduciary is not meeting their duty. Non-ERISA plans have fewer formal complaint channels, but state attorneys general sometimes investigate egregious cases.
Contact 403bwise.org
403bwise is a nonprofit advocacy organisation that tracks 403(b) plan quality by school district, provides model letters for demanding better options, and runs a forum where teachers share information about their plans.