ERISA Investment Fiduciary Services annual fee is 0.70% of plan assets with a minimum annual fee of $2,500 and an annual maximum fee based on plan assets. See below table for details.
| DEFINED BENEFIT/CASH BALANCE PLANS - ERISA 3(38) FIDUCIARY 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 | |||
For start-up Defined Contribution plans with assets less than $357,000, the annual fee is 0.70% (70 BPS). Once your plan exceeds this asset threshold, the fee structure will automatically switch to a flat fee based on the number of participants, and the 0.70% fee will no longer apply.
We firmly believe the flat fee model is the most advantageous fee structure but understand that it may not be suitable for start-up plans. To accommodate this, we offer a percentage-based fee until your plan grows large enough to benefit from our flat fee structure. This ensures that your plan has a cost-effective solution as it grows.
If you are starting a new plan, call us for more details.
To provide flexibility, we offer the option to bill fees outside of the 401(k) plan accounts. This approach offers two key advantages: participants keep 100% of their savings, and fees paid from a company account qualify as a tax-deductible business expense.
Learn more about how deducting fees directly from accounts can impact account growth.
Plan fees will vary based on the type of retirement plan your are sponsoring. Below is a fee breakdown for Defined Contribution Plans (e.g. 401(k) Profit Sharing Plan). For fees related to Defined Benefit Only Plan (e.g. Cash Balance Plan), click here. For Defined Contribution and Defined Benefit Combo Plan fees, click here.
There is no requirement to use a dedicated Recordkeeper for a Defined Benefit or Cash Balance Plan. Recordkeeping services can be utilized as an add-on service through the Third-Party Administrator. You may select a TPA from our exclusive network or a TPA of your choice. Charles Schwab and Fidelity are the available CBP Custodian options, and they do not charge our clients Custodian fees because of our ongoing institutional relationship with them.
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.
