403b Vanguard Transaction Fee

Investing
#1

Hi all! I have my 403b at Vanguard and just noticed that there is a monthly $5 administration fee. The expense ratio is also .08%, which is higher than most of the index funds that I opened with Fidelity. I also don’t see that Fidelity charges me an administration fee.

Is this fee par for the course with a 403b plan? I’m considering switching it over to Fidelity, but I’ve heard great things about Vanguard. Interested in everyone’s thoughts!

Thank you!
Sara

#2

Hi @selaplan!

0.08% is a great expense ratio! That’s not high. Anything under about 0.25% is good. The $5/month fee is annoying but not the end of the world.

Are you still with the employer of the 403b plan? If not, then a rollover IRA may be best. The backdoor Roth / pro rata rule is the only thing to keep in mind. If you are still with the employer, you usually can’t roll the assets out of the plan!

I hope this help!

Shane