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FEES

 

ERISA Fiduciary Fees

Our fee structure is transparent.  We do not have any 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.  Your Plan’s fee will vary depending on what type of a retirement plan you have.  For Defined Contribution Plans with Participant-Directed Accounts (PDAs), our ERISA 3(38) Fiduciary services flat annual fee is a base fee of $2,500 plus $200 per Participant with a one-time setup fee of $2,500 plus $100 per Participant.  Our ERISA 3(21) Fiduciary services annual fees for Defined Contribution Plans range from $2,500 to $20,000 with one-time setup fees ranging from $2,500 to $5,000.

For new and start-up retirement plans, we charge 70 bps (0.70%) of plan assets.  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 new plans so we offer this alternate fee structure till plan assets reach a certain threshold.  Call us for more details if you are starting a new plan.

For Defined Benefit (and Cash Balance) Plans, fee structure slightly varies.  The flat fee will be based on the asset size of the Plan.  Fee schedule as follows:

  • For Plan assets valued between $0 and $5 million, $2,500
  • For Plan assets valued between $5 million and $10 million, $5,000
  • For Plan assets valued between $10 million and $15 million, $7,500
  • For Plans assets valued higher than $15 million, $10,000

We also charge a one-time setup fee of $2,500 for Defined Benefit (and Cash Balance) Plans.

Additional fees apply for the optional Self-Directed Brokerage Accounts (SDBAs). Please visit the Self-Directed Brokerage Accounts page for more details.

 

Recordkeeper, Administrator, and Custodian Fees

Recordkeeping, Administrator, and Custodian fees are in addition to our annual ERISA Fiduciary fee.  VRPA’s Bundled and Unbundled package fees as follows:

Bundled Package

Number of
Participants
Base FeePer Participant Fee
Up to 15 participants$3,825
16–50 participants$3,825+ $75 per participant above 15 participants
51–100 participants$6,450+ $70 per participant above 50 participants
101–500 participants$9,950+ $65 per participant above 100 participants
501–1K participants$35,950+ $60 per participant above 500 participants
>1K participants$65,950+ $55 per participant above 1,000 participants

Unbundled Package

Number of
Participants
Base Fee
Per Participant Fee
Up to 15 participants$2,750
16–50 participants$2,750+ $70 per participant above 15 participants
51–100 participants$5,200+ $65 per participant above 50 participants
101–500 participants$8,450+ $60 per participant above 100 participants
501–1K participants$32,450+ $55 per participant above 500 participants
>1K participants$59,950+ $50 per participant above 1,000 participants

Under VRPA’s Bundled option, they charge a one-time flat fee of $1,000 for new plans and $1,500 for existing plans.  Under their Unbundled option, they charge a one-time flat fee of $500 for new plans and $850 for existing plans.

If you select the VRPA’s Unbundled package or have a Defined Benefit or a Cash Balance Plan, you will be required to hire an Administrator other than VRPA.  We have partnered with Farmer & Betts to provide Administrator services for plans that use VRPA’s Unbundled package or have a DB or a CB Plan.  Below is their fee schedule:

Annual Fee
Administrator Service Type Base Fee Per Participant Fee
401(k) & Profit Sharing Plan Only $1,250.00 $30.00
401(k) & Profit Sharing Plan with a Defined Benefit Plan $3,550.00 $50.00
401(k) & Profit Sharing Plan with Cash Balance Plan $4,550.00 $50.00
Defined Benefit Plan Only $1,950.00 $50.00
Cash Balance Plan Only $2,950.00 $50.00
One-Time Setup Fee
Administrator Service Type Base Fee Per Participant Fee
401(k) & Profit Sharing Plan Only $1,250.00 $10.00
401(k) & Profit Sharing Plan with a Defined Benefit Plan $2,750.00 $20.00
401(k) & Profit Sharing Plan with Cash Balance Plan $2,750.00 $20.00
Defined Benefit Plan Only $1,250.00 $10.00
Cash Balance Plan Only $1,250.00 $10.00
One-Time Setup Fee Will Be Waived for Existing Plans.  To get a fee estimate, use our Fee Calculator.

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

Passed in 2020, SECURE Act has been one of the most comprehensive updates to retirement plans in more than a decade, and one of the major benefits is the Small Business Tax Credits component of the act.

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.