FEES
Most advisors charge a percentage of assets under management for their retirement plans services. We, however, use a flat fee structure. Your Plan’s fee will vary depending on what type of a Plan you have. For Defined Contribution Plans with Participant-Directed Accounts (PDAs), our ERISA 3(38) Fiduciary services flat annual fee is a base fee of $2,500 plus $200 per Participant with a one-time setup fee of $2,500 plus $100 per Participant. Our ERISA 3(21) Fiduciary services flat annual fee is $2,500 with a one-time setup fee of $2,500.
For Defined Benefit (and Cash Balance) Plans, fee structure slightly varies. The flat fee will be based on the asset size of the Plan. Fee schedule as follows:
- For Plan assets valued between $0 and $5 million, $2,500
- For Plan assets valued between $5 million and $10 million, $5,000
- For Plan assets valued between $10 million and $15 million, $7,500
- For Plans assets valued higher than $15 million, $10,000
We also charge a one-time setup fee of $2,500 for Defined Benefit (and Cash Balance) Plans.
Additional fees apply for the optional Self-Directed Brokerage Accounts (SDBAs). Please visit the Self-Directed Brokerage Accounts page for more details.
Recordkeeping, TPA, and Custodial Fees are in addition to our annual fee. Vanguard’s Bundled and Unbundled package fees as follows:
Bundled Package
| Number of Participants | Base Fee | Per Participant Fee |
|---|---|---|
| Up to 15 participants | $3,825 | |
| 16–50 participants | $3,825 | + $75 per participant above 15 participants |
| 51–100 participants | $6,450 | + $70 per participant above 50 participants |
| 101–500 participants | $9,950 | + $65 per participant above 100 participants |
| 501–1K participants | $35,950 | + $60 per participant above 500 participants |
| >1K participants | $65,950 | + $55 per participant above 1,000 participants |
Unbundled Package
| Number of Participants | Base Fee | Per Participant Fee |
|---|---|---|
| Up to 15 participants | $2,750 | |
| 16–50 participants | $2,750 | + $70 per participant above 15 participants |
| 51–100 participants | $5,200 | + $65 per participant above 50 participants |
| 101–500 participants | $8,450 | + $60 per participant above 100 participants |
| 501–1K participants | $32,450 | + $55 per participant above 500 participants |
| >1K participants | $59,950 | + $50 per participant above 1,000 participants |
Under Vanguard’s Bundled option, they charge a one-time flat fee of $1,000 for new plans and $1,500 for existing plans. Under their Unbundled option, they charge a one-time flat fee of $500 for new plans and $850 for existing plans.
If you select the Vanguard Unbundled package or have a Defined Benefit or a Cash Balance Plan, you will be required to hire an TPA other than Vanguard. We have partnered with Farmer & Betts to provide TPA services for Plans that use Vanguard’s Unbundled package or have a DB or a CB Plan. Below is their fee schedule:
| Annual Fee | ||
|---|---|---|
| TPA Service Type | Base Fee | Per Participant Fee |
| 401(k) & Profit Sharing Plan Only | $1,250.00 | $30.00 |
| 401(k) & Profit Sharing Plan with a Defined Benefit Plan | $3,550.00 | $50.00 |
| 401(k) & Profit Sharing Plan with Cash Balance Plan | $4,550.00 | $50.00 |
| Defined Benefit Plan Only | $1,950.00 | $50.00 |
| Cash Balance Plan Only | $2,950.00 | $50.00 |
| One-Time Setup Fee | ||
|---|---|---|
| TPA Service Type | Base Fee | Per Participant Fee |
| 401(k) & Profit Sharing Plan Only | $1,250.00 | $10.00 |
| 401(k) & Profit Sharing Plan with a Defined Benefit Plan | $2,750.00 | $20.00 |
| 401(k) & Profit Sharing Plan with Cash Balance Plan | $2,750.00 | $20.00 |
| Defined Benefit Plan Only | $1,250.00 | $10.00 |
| Cash Balance Plan Only | $1,250.00 | $10.00 |
| One-Time Setup Fee Will Be Waived for Existing Plans. To get a fee estimate, use our Fee Calculator. | ||
For our Limited Scope ERISA 3(21) Fiduciary Services, we charge a flat annual fee of $2,500 plus a one-time setup fee of $2,500. Additional fees apply for Full Scope and Specific Scope ERISA 3(21) Fiduciary Services. Please contact us for more details.
Up to $16,500 in Tax Credits for Small Business Retirement Plans
Passed in 2020, SECURE Act has been one of the most comprehensive updates to retirement plans in more than a decade, and one of the major benefits is the Small Business Tax Credits component of the act.
Companies with up to 100 employees can claim a tax credit to offset startup costs associated with establishing a new 401(k) plan. Companies can get a tax credit of up to $5,000 per year for the first three years, with a maximum total credit of up to $15,000. Startup costs include:
- Annual and setup fees for Third-Party Administrator services
- Annual and setup fees for ERISA Fiduciary services
- Annual and setup fees for Recordkeeping services
Furthermore, there is also a $500 tax credit available for plans that add an automatic enrollment feature to a new or existing retirement plan for participants. This credit is also available for the first three years the feature is effective, with a maximum total credit of up to $1,500. This means that the total maximum eligible tax credit for establishing a 401(k) plan is $16,500 for the three years.
To learn more details about the IRS tax credits, click here.