iQ401k Fees vs Industry Fees
As you can see by the table, cost savings of iQ401k platform becomes more evident when the average per account balance is greater than $50,000.
On our platform, greatest savings are for retirement plans with 50 participants with an average account balance of $100,000. These plans can save up to nearly 97% on our platform. Followed by plans with 100 and 200 participants with an average account balance of $100,000 saving about 92% in fees.
Our fees are based on per participant and do not increase as plan assets increase. For smaller plans, we are somewhat cost-prohibitive in the beginning. But as plan assets grow, our flat fees will remain the same and decrease percentage-wise.
| Plan Details | Industry Averages* | iQ401k & VRPA Fees (as a %)** | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Plan Assets | # of Participants | Average Account Balance | Advisor & Fund Fees | Recordkeeping & Administration Fees | Total Fee | iQ401k & Fund Fees as a %*** | VRPA Recordkeeping & Administration Fees as a % | Total Fee as a % | |
| $250,000 | 25 | $10,000 | → | 1.64% | 1.02% | 2.66% | 3.20% | 1.83% | 5.03% |
| $500,000 | 50 | $10,000 | → | 1.56% | 0.66% | 2.22% | 2.70% | 1.29% | 3.99% |
| $1,000,000 | 100 | $10,000 | → | 1.36% | 0.50% | 1.86% | 2.45% | 1.00% | 3.45% |
| $2,000,000 | 200 | $10,000 | → | 1.24% | 0.39% | 1.63% | 2.33% | 0.82% | 3.15% |
| $5,000,000 | 500 | $10,000 | → | 1.19% | 0.30% | 1.49% | 2.25% | 0.72% | 2.97% |
| $10,000,000 | 1,000 | $10,000 | → | 1.10% | 0.27% | 1.37% | 2.23% | 0.66% | 2.88% |
| $20,000,000 | 2,000 | $10,000 | → | 0.98% | 0.24% | 1.22% | 2.21% | 0.60% | 2.82% |
| $500,000 | 10 | $50,000 | → | 1.42% | 0.41% | 1.83% | 1.10% | 0.77% | 1.87% |
| $1,250,000 | 25 | $50,000 | → | 1.32% | 0.17% | 1.49% | 0.80% | 0.37% | 1.17% |
| $2,500,000 | 50 | $50,000 | → | 1.24% | 0.11% | 1.35% | 0.70% | 0.26% | 0.96% |
| $5,000,000 | 100 | $50,000 | → | 1.12% | 0.08% | 1.20% | 0.65% | 0.20% | 0.85% |
| $10,000,000 | 200 | $50,000 | → | 1.01% | 0.06% | 1.07% | 0.63% | 0.16% | 0.79% |
| $25,000,000 | 500 | $50,000 | → | 0.94% | 0.04% | 0.98% | 0.61% | 0.14% | 0.75% |
| $50,000,000 | 1,000 | $50,000 | → | 0.87% | 0.03% | 0.90% | 0.61% | 0.13% | 0.74% |
| $100,000,000 | 2,000 | $50,000 | → | 0.76% | 0.02% | 0.78% | 0.60% | 0.12% | 0.72% |
| $1,000,000 | 10 | $100,000 | → | 1.31% | 0.13% | 1.44% | 0.65% | 0.38% | 1.03% |
| $2,500,000 | 25 | $100,000 | → | 1.22% | 0.07% | 1.29% | 0.50% | 0.18% | 0.68% |
| $5,000,000 | 50 | $100,000 | → | 1.10% | 0.04% | 1.14% | 0.45% | 0.13% | 0.58% |
| $10,000,000 | 100 | $100,000 | → | 0.99% | 0.02% | 1.01% | 0.43% | 0.10% | 0.52% |
| $20,000,000 | 200 | $100,000 | → | 0.94% | 0.01% | 0.95% | 0.41% | 0.08% | 0.49% |
| $50,000,000 | 500 | $100,000 | → | 0.86% | 0.01% | 0.87% | 0.41% | 0.07% | 0.48% |
| $100,000,000 | 1,000 | $100,000 | → | 0.74% | 0.01% | 0.75% | 0.40% | 0.07% | 0.47% |
| $200,000,000 | 2,000 | $100,000 | → | 0.64% | 0.01% | 0.65% | 0.40% | 0.06% | 0.46% |
* Industry average data was obtained from the 401(k) Averages Book (21st edition) and based on 195 product offerings and 66 service providers.
** iQ401k & VRPA charge flat dollar amounts based on # participants. Fees are presented as a % for illustration purposes.
*** 0.20% (20bps) was used as the average fund expense ratio for iQ401k’s fund expenses.
