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The Smart Way to Manage Your Retirement Plan

THE iQ401k DIFFERENCE

Open Architecture Platform Through Vanguard Retirement Plan Access™

We provide access to a true “open architecture” 401(k) platform where each service provider can be added or removed without affecting plan’s structure.  Most retirement plans consist of bundled packages where the Fiduciary, Recordkeeper, Third-Party Administrator, and Custodian are provided by the same company.  This bundled approach is almost never beneficial to the plan, as one company may not be able to provide all these services efficiently in a cost-effective manner.  On our platform, the fiduciary role will be completed by iQ401k (powered by FPL Capital Management), while Vanguard performs Recordkeeper and TPA duties.  If needed, an outside TPA can be retained.  The Custodian will be Vanguard (administered by Ascensus).

1. Market Strategies International. Cogent ReportsTM US Institutional Brandscape, February 18. Respondents selected Vanguard as one of three plan providers they most associated with being a company they trusted. Cogent research provides custom research, syndicated research products and evidence-based consulting to organizations in the financial services, life sciences and consumer goods industries. This institutional investor survey was conducted independently by Cogent. Vanguard neither commissioned nor paid to be included. Cogent has conducted unrelated, custom market research for Vanguard in the past.

2. Pensions & Investments, as of June 30, 2018.

3. Ascensus, 2019.

Our Fee Stays The Same, Even As The Plan Assets Grow.

Reduce Your Retirement Plan Fees by 30% to 40% on Average While Lowering Your Taxes

We offer ERISA 3(38) fiduciary investment management services on a flat-fee basis, while most retirement plans are charged a percentage of assets under management.  Flat-fee structure should benefit most larger plans compared to the percentage of assets fee structure.  Our flat annual fee is a base fee of $2,500 plus $200 per participant.  Visit our Fees page for additional information.

A study of 525 retirement plans recently found that the average annual fee to be 0.52% of assets under management for plans with between $1 million and $5 million in assets. For a 20-participant plan with $2 million in plan assets, that would result in an annual fee of $10,400.

By contrast, that same 20-participant plan with $2 million in assets would cost $6,500 under our flat fee structure.  Our fee stays the same even as plan assets grow.  Also, our fee can be paid outside of retirement plan accounts, which is generally treated as a tax-deductible expense for the plan sponsor, if the fee is paid directly from company assets.

OUR SERVICES

Fiduciary (ERISA 3(38) or 3(21))

Plan design services

Create and manage asset allocation models

Educate Plan Participants

Provide basic investment advice for Plan Participants

Making final investment selections

Monitoring and terminating investment choices for Plan Participants

Directing plan investments

Selecting and retaining the investment lineup for the Plan

Design and maintain Plan Investment Policy Statement

Appointing and deciding whether to continue to retain other limited scope investment fiduciaries

Conduct Plan Participant risk evaluations

Provide quarterly Plan monitoring reports

 iQ401kOther Investment Managers
Flat-Fee StructureYes% of Assets Under Management
Fee PaymentOutside of Plan AssetsFrom Plan Assets
Open ArchitectureYesMostly Bundled
Investment Lineup40 to 50 Funds10 to 15 Funds
Institutional FundsYesMostly Non-Institutional
Low-Cost FundsAlwaysAbove Average Expense Ratios
SDBAsAlwaysMajority Do Not
Plan WebsiteYesNo