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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.

DEFINED BENEFIT/CASH BALANCE PLANS – ERISA 3(38) SERVICES
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.