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 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.
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. We have partnered with Farmer & Betts to provide TPA services.
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.