Pre Loader

Fees

/Fees

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 FeePer 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.