Open Architecture Retirement Plan Platform Through Vanguard Retirement Plan Access™
iQ401k is an “open architecture” retirement plan platform that offers business owners unparalleled flexibility and unique capabilities. Our retirement plans are designed to reduce fees and taxes, which can help businesses acquire new talent*, retain employees**, and grow their company. Investment Fiduciary services are provided by FPLCM, while Vanguard Retirement Plan Access (VRPA) performs Recordkeeper duties. Farmer & Betts will provide most Third-Party Administrator services. We offer multiple custodian options based on the retirement plan structure.
*Nearly 90% of participants considered a 401(k) Plan a must-have when looking for a new job according to a Charles Schwab 401(k) Participant Study done in 2023
**Nearly 70% of participants were more likely to stay with an employer that offered a 401(k) Plan according to the same study
Footnotes and Disclosures
Reduce Your Retirement Plan Fees by 40% to 60% on Average While Lowering Your Taxes
We charge a flat per participant fee for our ERISA 3(38) Fiduciary investment management services while most advisors charge a percentage of assets under management. Flat-fee structure should ultimately benefit most larger plans compared to the percentage of assets fee model. Our flat annual fee is a base fee of $2,500 + $200 per participant. Visit our Fees page for additional information.
A recent study of 525 retirement plans showed 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 $3 million in plan assets, that would result in an annual fee of $15,600.
By contrast, that same 20-participant plan with $3 million in assets would cost $6,500 under our flat fee structure, and our fee stays the same even as plan assets grow. Also, our fees can be paid outside of retirement plan accounts, which is generally treated as a tax-deductible expense for the business owner.
ERISA 3(38) or 3(21) Fiduciary Services
Plan Design Consulting
Design & Maintain Investment Selection
Design & Manage Asset Allocation Models
Perform Plan Participant Risk Evaluations
Provide Investment Advice for Plan Participants
Design & Maintain Investment Policy Statement
Provide Quarterly Monitoring Reports
Conduct Annual Plan Reviews
Access to Financial Wellness Tools
Assist Plan Fiduciaries with Service Providers
Provide Fee Benchmarking Reports
|Flat-Fee Structure||Per Participant||% of Assets Under Management|
|Fee Payment||Outside of Plan Assets||From Participant Accounts|
|Open Architecture||Yes||Proprietary Options|
|Investment Lineup||30 to 40 Funds||10 to 15 Funds|
|Institutional Funds||Yes||Mostly Non-Institutional|
|Low-Cost Funds||On Average 0.10% to 0.15%||On Average in Excess of 0.35%|
|SDBAs||Always||Only Half of Plans|