Types of Fees That 403(b) Plan Services Providers Charge

Plan service providers charge various types of fees for different services.

Administrative fees can cover services such as record keeping for the plan and communications with participants; as well as services incurred on an individual participant basis, such as fees for processing a participant loan or distribution. Investment-related fees are associated with buying, selling, and managing investments, but they can also include embedded costs of plan administration. 

Asset-based investment fees, a type of investment-related fee, are typically the largest fees a participant will pay. Often called the expense ratio, this fee expresses the percentage of assets under management that is deducted each year for fund expenses.