Some companies are large enough that they have their own institutional funds to offer their employees in the 401K, some companies aren’t and thus rely on the offerings of a large brokerage house like T. Rowe Price, Vanguard, or Fidelity. Either way, it’s crucial that you review the fund fees of the funds you’re invested in so that you understand how much you’re paying per year to a manager to handle your money. When you do, remember that index fund mirroring most benchmarks for performance, usually the S&P 500, can be bought with expense ratios of less than half a percent (Vanguard’s 500 Index Fund has an expense ratio of 0.18%!).
So what do you do if your company has ridiculous fees? First, I would decide on which funds are cheapest and offer the right performance, both in terms of asset allocation and past performance (past performance is not indicative of future returns), and then I’d consider where I could move the funds to. If your company offers a self directed 401K, where you can buy individual stocks, consider moving your funds there and buying a mutual fund elsewhere.
Whatever you decide to do, it’s crucial to understand how much you’re paying because it can eat into your returns.