Back in May, we ran a story called “Americans Don’t Know They’re Paying for Their 401(k)” — and got some colorful emails in return. Understandably, readers wanted to know what they could actually do with their 401(k) at providers like ADP, Voya, and others — all of which (un)surprisingly offer few low-cost options.

So today, we answer.

The pain of a bad plan: When people discover the hidden costs baked into their 401(k), it’s understandable to feel discouraged, watching hard work get siphoned away — some have even sworn off contributions altogether. Yes, fees can quietly drag down your retirement savings, but there’s no reason to give them up altogether — not least, because of your employer’s 401(k) match. So what’s the easiest thing you can do if there are no alternatives?

• Contribute to your 401(k) up to the percent match your company offers — if they match 100% of the first 4% of your salary and you make $65K, contribute at least 4%.
• Once you lock in the “free money,” keep contributing unless your fees are exceedingly unreasonable (above 1%).

If Nothing Else: “Say Goodbye”

We found that many 401(k) plans have at least one low-cost option — like a passive S&P 500 ETF — where you can allocate your entire contribution. That’s perfectly fine, even if it comes at the expense of diversification. But you might have another alternative at your disposal: taking your 401(k) elsewhere.

• About 70% of plans offer in-service withdrawals, which let you roll over a portion of — or all — of your 401(k) to an IRA at a different provider offering more optionality while still employed by the company sponsoring the plan.
• For example, you could make an in-service withdrawal once a year, while investing in the lowest-cost options available in your 401(k), and gain diversification from outside investments like an IRA.

What if in-service withdrawals aren’t allowed? If your plan doesn’t offer them, you could just invest in your 401(k)’s cheap funds and roll over once you leave your job.

What’s the best way to roll over? You can usually do it yourself by filling out an online form. But the easier route might be through a service like Capitalize, which can help you find and consolidate your old 401(k)s into a lower-cost IRA. In some cases, your new provider will even cover the transfer fee.