Working for a company that started out small, grew a little and now keeps shrinking. Been there 6 years and maxed out 401k contributions and now have a balance of about 200k. Turns out because of a lot of turnover I have one of the larger balances of the remaining 15-20 people in the company and they are deducting over 10% of the company’s quarterly 401k fees out of my 401k account. Is this crazy or have other people run into this with shrinking companies? Anything I can do other than leave?

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It's surprisingly legal, but really bites. To reduce your share, you can transfer your 401K funds to an IRA, assuming your plan allows for an "in service rollover".

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Run

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I can't help, but thanks for posting this. I'm interviewing with a company with less than 50 employees and usually max out every year. I'll have to watch for this.

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No option for in service rollover unfortunately. Fees this year are 20-40% higher than last year. Only get a 50% match up to 7% as well. Not a lot of upside to staying with a shrinking company I guess, so maybe it’s a sign to start looking for the exit. Thanks for the replies.

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Pleasant surprise: even as a seasonal front-line employee, my employer contributes $1.25 for every 1.00 that I contribute to my 401k, up to 6% of my pay including bonuses. I thought it must be a typo when I first saw it in writing. Frankly, it is the most generous 401k I have ever seen in my 40 years of employment. Thank You!

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I came from higher ed and the last match program I had was 10% for me putting in zero and another 1-for-1 up to 20%

I was getting ready to just quit around Liberation Day but the hit my portfolio took made me stick around. That excuse is gone now so probably time to bounce.

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