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.

helpful

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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