ERISA Investment Fiduciary Fees
We believe in transparency which is why you will not find embedded or hidden fees. We are compensated solely by the fees paid by Plan Sponsors (Employers). Most advisors charge a fee based on a percentage of assets under management to manage retirement plans. We, however, use a flat fee structure that is based on the number of participants.
Plan fees will be determined based 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). Click here for Defined Benefit Only Plan (e.g. Cash Balance Plan) fees. Click here for Defined Contribution and Defined Benefit Combo Plan fees.
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 Size||Annual Fees||One-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 Participants||Contact for Pricing||Contact for Pricing|
|Start-Up Plans Qualify for a Discounted Rate of 0.70% Plan Asset till Plan Reaches $357,000|
For start-up Defined Contribution plans, a discounted rate of 70 bps (0.70%) of plan assets is charged. 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.
Recordkeeper, 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 VRPA’s platform for Recordkeeping and Custodian while we have partnered with Farmer & Betts to provide TPA services.
VRPA – Annual Fees
|Number of Participants||Base Fee||Per Participant Fee|
|Up to 15 Participants||$2,900||—|
|16 to 50 Participants||$2,900||$70/PPT Above 15|
|51 to 100 Participants||$5,350||$65/PPT Above 50|
|101 to 500 Participants||$8,600||$60/PPT Above 100|
|501 to 1,000 Participants||$32,600||$55/PPT Above 500|
|1,000 + Participants||$60,100||$50/PPT Above 1,000|
|VRPA Does Not Charge a Setup Fee|
Farmer & Betts – Annual & One-Time Setup Fees
|TPA Service Provided||Annual Fees||One-Time Setup Fee|
|401(k) Profit Sharing Plan Only||$1,650 + $35/PPT||$1,350|
|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.