Taking Aim at 401(k) Fees

Schwab rolls out a retirement savings plan that’s all index funds.

As regulators focus more on the fees participants pay for their 401(k)s, Charles Schwab is launching a 401(k) plan that offers only index mutual funds, which are often much less expensive than actively managed funds. The new product, Schwab Index Advantage, also provides personalized investment advice and access to an FDIC-insured bank account for investors.

Schwab Index Advantage will have a line-up of about 40 index funds in 16 different asset categories, says Steve Anderson, senior vice president at Schwab Retirement Services.

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