Defined Benefit Plans

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 Defined Benefit Only Plans (e.g. Cash Balance Plans).

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.

Plan AssetsFee RateMin Annual FeeMax Annual Fee
Between $0 – $5M0.70%$2,500$5,000
Between $5M – $10M0.70%N/A$10,000
Between $10M – $15M0.70%N/A$15,000
Greater than $15M0.70%N/A$20,000
One-Time Setup Fee is $2,500

Click here for ERISA 3(21) Fee Schedule

Recordkeeping, Third-Party Administrator, and Custodian Fees

Recordkeeping, Third-Party Administrator, and Custodian fees are in addition to our annual ERISA Investment Fiduciary fee. 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 of your choice.  However, our main TPA relationship is with Farmer & Betts.

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.