Below is a fee breakdown for a combo plan that includes both a Defined Contribution and a Defined Benefit Plan.
| DEFINED CONTRIBUTION PLANS - ERISA 3(38) FIDUCIARY SERVICES | ||
|---|---|---|
| Plan Size | Annual Fees | One-Time Setup Fees |
| Fewer than 100 Participants | $2,500 + $200/PPT | $2,500 + $100/PPT |
| 100 - 199 Participants | $7,500 + $200/PPT | $7,500 + $100/PPT |
| 200 - 299 Participants | $12,500 + $200/PPT | $12,500 + $100/PPT |
| 300 - 500 Participants | $17,500 + $200/PPT | $17,500 + $100/PPT |
| Greater than 500 Participants | Contact Us for Pricing | Contact Us for Pricing |
| Start-up plans are charged an annual fee of 0.70% assets till plan reaches $357,000 | ||
| DEFINED BENEFIT/CASH BALANCE PLANS - ERISA 3(38) FIDUCIARY SERVICES | |||
|---|---|---|---|
| Plan Assets | Annual Fee Rate | Min Annual Fee | Max Annual Fee |
| Between $0 - $5M | 0.70% | N/A | $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 | |||
We utilize Vanguard Retirement Plan Access platform for Recordkeeping and Custodian services Defined Contribution Plans. You may select a TPA from our exclusive network or a TPA of your choice.
The SECURE Act, enacted in 2020, marked a significant overhaul of retirement plans, representing one of the most comprehensive updates in over ten years. Subsequently, SECURE Act 2.0, passed in 2023, introduced further revisions to retirement plans. Among its key advantages is the provision of small business tax credits.
Businesses employing up to 100 employees are eligible to receive a Startup Tax Credit to offset startup costs associated with implementing a new retirement plan. These businesses can get a tax credit of up to $5,000 per year for the initial three years, with a maximum total credit of up to $15,000. These startup costs include:
Furthermore, there is also a $500 Auto-Enrollment Tax Credit available for plans that add an automatic enrollment feature to their retirement plan. This credit is also available for the first three years the feature is in effect, with a maximum total credit of up to $1,500. Thus, the maximum eligible tax credit for establishing a retirement plan is $16,500 for the three years.
The enactment of SECURE Act 2.0 introduced an additional Employer Contribution Tax Credit for employer contributions made on behalf of employees. Businesses have the potential to receive up to $1,000 in tax credits for each eligible employee receiving employer contributions. Click here for more details.
To learn more details about the IRS tax credits, click here.
