Why pay more when you can make a smart choice for your retirement savings? Consider the benefits of investing with Vanguard.
To get the true story about fees, look at the total, all-in plan price. As the chart shows, our competitors can charge twice as many individual fees.
When you compare the total amount paid for all plan service and investment fees, Vanguard 403(b) Services ranks among the lowest-cost 403(b) plans available.
Our fees are clear and straightforward. While some 403(b) providers may charge many types of fees fees you may not even realize you re being charged Vanguard has just two:
Plan participants will never find a hidden fee or charge. That means no front-or back-end loads, commissions, surrender charges, or asset-based administration "wrap" fees. And we don t charge you for taking a distribution from your account, as many of our competitors do.1
Plan sponsors have two options for paying the recordkeeping fee: as a direct plan sponsor expense, or through automated deductions from participant accounts. If applicable, a plan using a third-party administrator (TPA) may charge a TPA fee, which the plan sponsor can deduct from participant accounts.2
Vanguard Target Retirement Funds offer a complete portfolio in a single fund. With Vanguard 403(b) Services, you have access to our lowest-cost target retirement funds Vanguard Institutional Target Retirement Funds. There are no fund minimums.
Vanguard 403(b) Services has the added benefit of offering additional cost savings through the Admiral Shares of our mutual funds with no minimum investment required.
The Vanguard average expense ratio for mutual funds is 84% less than the industry average.4
For investors, that can mean more potential returns because every penny you save in fund costs is a penny that stays in your account, where it can grow tax-deferred.
Because costs and fees can cut directly into investment returns, it s important to know what your funds cost whether you re an employer choosing a plan or an employee who may have a choice of providers.
A participant who takes a loan from a 403(b) account (if the plan permits) will incur a one time $50 loan initiation fee and a $25 per-year loan maintenance fee.
Plans using a third-party administrator (TPA) may authorize Vanguard to deduct the TPA’s fees from participant accounts. These fees or charges will be listed as a separate line-item fee and be clearly identified on participant statements.
Actual participant and/or plan fees may vary depending on the investments and services used. Fees not reflected in the table may include certain participant transaction fees, such as loans, and fees for other services if applicable.
Vanguard average mutual fund expense ratio: 0.08%. Industry average mutual fund expense ratio: 0.50%. All averages are asset-weighted. Industry average excludes Vanguard. Sources: Vanguard and Morningstar, Inc., as of December 31, 2025.
For more information about Vanguard funds or ETFs, visit
All investing is subject to risk, including the possible loss of the money you invest.
Investments in Target Retirement Funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the "target date") when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in a Target Retirement Fund is not guaranteed at any time, including on or after the target date.