ERISA Investment Fiduciary Fees
Plan fees will be determined based on the type of retirement plan offered to your employees. Below is a fee breakdown for a combo plan that includes both a Defined Contribution and a Defined Benefit Plan.
FPLCM – Annual & One-Time Setup Fees
Our fee structure depends on the type of ERISA Investment Fiduciary Services we will be providing for your retirement plan.
|DEFINED CONTRIBUTION PLANS – ERISA 3(38) SERVICES|
|Plan Size||Annual Fees||One-Time Setup Fees|
|Fewer than 100 Participants||$2,500 + $200/PPT||$2,500 + $100/PPT|
|100 to 199 Participants||$7,500 + $200/PPT||$7,500 + $100/PPT|
|200 to 299 Participants||$12,500 + $200/PPT||$12,500 + $100/PPT|
|300 to 500 Participants||$17,500 + $200/PPT||$17,500 + $100/PPT|
|Greater than 500 Participants||Contact for Pricing||Contact for Pricing|
|Start-Up Plans Qualify for a Discounted Rate of 0.70% Plan Asset till Plan Reaches $357,000|
Click here for ERISA 3(21) Fee Schedule
|DEFINED BENEFIT/CASH BALANCE PLANS – ERISA 3(38) SERVICES|
|Plan Assets||Fee Rate||Min Annual Fee||Max Annual Fee|
|Between $0 – $5M||0.70%||$2,500||$5,000|
|Between $5M – $10M||0.70%||N/A||$10,000|
|Between $10M – $15M||0.70%||N/A||$15,000|
|Greater than $15M||0.70%||N/A||$20,000|
|One-Time Setup Fee is $2,500|
Recordkeeper, Third-Party Administrator, and Custodian Fees
Recordkeeping, Third-Party Administrator, and Custodian fees are in addition to our annual ERISA Fiduciary fee. We utilize VRPA’s platform for Recordkeeping and Custodian while we have partnered with Farmer & Betts to provide TPA services.
VRPA – Annual Fees
|Number of Participants||Base Fee||Per Participant Fee|
|Up to 15 Participants||$2,900||—|
|16 to 50 Participants||$2,900||$70/PPT Above 15|
|51 to 100 Participants||$5,350||$65/PPT Above 50|
|101 to 500 Participants||$8,600||$60/PPT Above 100|
|501 to 1,000 Participants||$32,600||$55/PPT Above 500|
|1,000 + Participants||$60,100||$50/PPT Above 1,000|
|VRPA Does Not Charge a Setup Fee|
Farmer & Betts – Annual & One-Time Setup Fees
|TPA Service Provided||Annual Fees||One-Time Setup Fee|
|401(k) Profit Sharing Plan with a Defined Benefit Plan||$3,950 + $50/PPT||$2,750|
|401(k) Profit Sharing Plan with Cash Balance Plan||$4,450 + $50/PPT||$2,750|
|One-Time Setup Fee Waived for Existing Plans|
Up to $16,500 in Tax Credits for Small Business Retirement Plans
The SECURE Act, passed in 2020, has been one of the most comprehensive updates to retirement plans in more than a decade. One of the major benefits of the bill is the Small Business Tax Credits.
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.