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Defined Contribution Plans

ERISA Investment Fiduciary Fees

We firmly believe in transparency which is why you will not find any embedded or hidden fees in our services or the funds we offer. We are compensated solely by the fees paid by Plan Sponsors (Employers). While many advisors typically charge a fee based on a percentage of assets under management for managing retirement plans, we operate on a flat fee structure determined by the number of participants.

Plan fees will vary depending on the type of retirement plan offered to your employees. 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.

 

FPLCM – Annual & One-Time Setup Fees

Fee structure depends on the type of ERISA Investment Fiduciary Services provided for the retirement plan.

DEFINED CONTRIBUTION PLANS – ERISA 3(38) SERVICES
Plan SizeAnnual FeesOne-Time Setup Fees
Fewer than 100 Participants$2,500 + $200/PPT$2,500 + $100/PPT
100 to 199 Participants$7,500 + $200/PPT$7,500 + $100/PPT
200 to 299 Participants$12,500 + $200/PPT$12,500 + $100/PPT
300 to 500 Participants$17,500 + $200/PPT$17,500 + $100/PPT
Greater than 500 ParticipantsContact for PricingContact for Pricing
Start-Up Plans Are Charged 0.70% of Plan Asset till Plan Reaches $357,000

Click here for ERISA 3(21) Fee Schedule

For start-up Defined Contribution plans, the annual fee is 70 bps (0.70%). While we believe the flat fee structure is the most beneficial compensation method, we understand that our flat dollar fees can be a significant amount (percentage-wise) for start-up plans, so we offer this alternate fee structure till plan assets reach $357,000. Call us for more details if you are starting a new plan.

Recordkeepeing, Third-Party Administrator, and Custodian Fees

Recordkeeping, Third-Party Administrator, and Custodian fees are in addition to our annual ERISA Investment Fiduciary fees. We utilize Vanguard Retirement Plan Access platform for Recordkeeping and Custodian services. You may use a TPA of your choice. However, our main TPA relationship is with Farmer & Betts.

Click here for Vanguard Recordkeeping Fees

Click here for Farmer & Betts Third-Party Administrator Fees

Up to $16,500 in Tax Credits for Small Business Retirement Plans

 

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:

  • 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 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.