|One-time only set-up fee||$495/one-time||$595/one-time||$795/one-time|
|1 eligible employee||$395/yr||$495/yr||$795/yr|
|2-4 eligible employees||$495/yr||$695/yr||$1395/yr|
|5-10 eligible employees||$695/yr||$895/yr||$1695/yr|
|11-15 eligible employees||$795/yr||$995/yr||$1795/yr|
|16-20 eligible employees||$995/yr||$1295/yr||$1995/yr|
|21-25 eligible employees||$1195/yr||$1595/yr||$2395/yr|
|26-30 eligible employees||$1395/yr||$1795/yr||$2695/yr|
|31-35 eligible employees||$1595/yr||$1995/yr||$2895/yr|
|36-40 eligible employees||$1795/yr||$2195/yr||$3095/yr|
|41-45 eligible employees||$1995/yr||$2395/yr||$3395/yr|
|46-50 eligible employees||$2195/yr||$2595/yr||$3595/yr|
|more than 50 eligible employees||$2195/yr + $200/yr for each additional 5 eligible employees||$2595/yr + $250/yr for each additional 5 eligible employees||$3595/yr + $300/yr for each additional 5 eligible employees|
|Please Note: All first-year clients are charge the one-time only plan set-up fee. The pricing above applies to the first year of service only. Renewal fees may be adjusted because no set-up fee is charged in subsequent years.|
|Secure online plan management for employer|
|Secure online account management for participants|
|Self-directed brokerage with unlimited investments|
|Unlimited selection of no-load mutual funds|
|Signature-ready 5500-SF and 1099 filings|
|Employer sends purchase orders and contribution payments to custodian|
|Unlimited selection of self-directed brokerages|
|Employer authorizes contribution purchases online, anytime day or night|
Affordability, great investment flexibility and ease of use draw people to 401k Easy. Of these three attractions, affordability often plays the most influential role.
Our policy: No hidden fees & no asset-based fees & no commissions, ever!
In the 401k arena, expense fee disclosure, whether to plan participants or plan sponsors, has been notoriously confusing and unclear. The impact of these confusing hidden fees on plan participants' retirement accounts can be very significant over time. As example, consider a hypothetical 401k investment such as a mutual fund, with deducted expense fees of 1.3 percent versus one with fees of just .3 percent. Applied to an initial 401k investment of $5,000, with regular annual investments of $5,000 returning 10 percent, and compounded over 15 years, the difference between the "low-fee" investment and the "high-fee" investment adds up to $15,398. That's a significant sum deducted from a participant's retirement savings.
Policymakers and plan sponsors seeking to structure well-managed 401ks for their aging workforces are beginning to acknowledge the negative impact hidden fees has on eroding pension accumulations for retirement. What might appear to be a small difference in deducted investment fees can result in substantial differences in eventual retirement benefits.
Our policy is not to accept any rebates or revenue sharing of fees deducted from our clients' plan assets ... period! Entities that provide 401k plans, including mutual funds managers, fund distributors, asset custodians, asset trustees, investment brokers and advisors, and plan administrators and record-keepers. These entities typically earn at least a portion of their compensation from asset-based fees extracted from plan assets; 401k Easy is an exception from the norm.
Hidden & Excessive 401k Fees are Causing Severe Damage and Loss for 401k Participants
Today the typical American household saving for retirement in a 401(k) will pay nearly $155,000 in un-necessary, excessive, mostly hidden 401k fees and commissions to brokers, agents and administrators.
Participants in our 401k Easy 401k plans are NEVER charged unnecessary marketing fees, including revenue-sharing fees, agent and broker commissions, or recordkeeping fees. Our 401k Easy plans being a clear exception, the vast majority of small 401k plans are larded with various "marketing fees" that 401k participants unknowingly pay. These unnecessary marketing fees include revenue-sharing fees, agent and broker commissions, and rebates to third-party administrators for pre-packaging mutual funds into the 401k plans. Demos.org, a well-regarded national non-profit research organization, calculates these unnecessary, non-essential marketing fees cost the typical 401k investor approximately $155,000 in lost value for the lifetime of his or her account!
Most 401k savers are unaware they are paying unnecessary marketing fees and advisors commissions, extracted from their 401k accounts. It's a national scandal --- and reduces the typical 401k value by nearly $155,000!
The vast majority of 401k participants in smaller plans are charged unnecessary Marketing Fees they do not know about or understand. According to a study of 401k fees by AARP (AARP.org), "When plan participants were asked whether they pay any fees for their 401(k) plan, eight in ten (83%) reported that they did not pay any fees." For example, a 30-year old who saves $250 a month in the 401k may be charged approximately $136,000 in unnecessary, non-essential Marketing Fees by age 65. For more examples of the losses caused by 401k Marketing Fees to various sample investors, please click here.
Published Prices Are Not Necessarily What You Pay for 401k
Published record-keeping fees for a company with 15 employees and $1 million in assets
- 401k Easy (www.401keasy.com): $995
- Ubiquity 401k (www.myubiquity.com): $1,100
- Wellington 401k (www.wellington401k.com): $1,350
- Employee Fiduciary 401k (www.employeefiduciary.com): $1,500
- Sharebuilder 401k (www.sharebuilder401k.com): $1,080
|Published record-keeping fees "plus "all-in" hidden and marketing fees for a company with 15 employees and $1 million in assets|
|401k Easy (Standard)||: $995 + [No "all-in" hidden and marketing fees -- EVER!||= $995 per year complete!|
|Ubiquity 401k||: $1,100 + ["All-in" hidden and marketing fees of 0.72% to 1.89% of $1 million]||= $8,550 to $20,250 per year|
|Wellington 401k||: $1,350 + ["All-in" hidden and marketing fees of 0.72% to 1.89% of $1 million]||= $8,550 to $20,250 per year|
|Employee Fiduciary||: $1,500 + ["All-in" hidden and marketing fees of 0.08%]||= $2,300 per year|
|Sharebuilder 401k||: $1,080 + ["All-in" hidden and marketing fees of 0.65% of $1 million]||= $7,580 per year|
So it's not rocket science to understand why many plan providers in the 401k industry are blowing smoke to make any discussion about hidden or "all in" 401k fees confusing and bewildering. There is a great deal of money at stake, and all this smoke clouds the fact that many small employers are unknowingly offering their employees 401k plans laden with hidden fees.
Hidden and "all-in" 401k fees are getting noticed by the news media and the legal profession via class-action law suits, and some 401k plan providers that made fortunes mining hidden fees are now scrambling to cover their tracks. They are generating the kind of PR confusion many of us remember from years past, when major tobacco companies tried to explain to Americans that smoking was not hazardous their health. Many in the 401k industry are launching the same kind of PR assault, confusing and clouding the issue, but what is really at stake is the end of their 401k hidden fee gravy train, pure and simple.
All-inclusive pricing based solely on Company size
Apologies for the repetition. We simply want to be clear that the above annual fees really are all-inclusive.
The set-up fee: A one-time charge
401k Easy plan design options include:
Visit our Order & Customization section to view the exact choices currently available under each of these plan design options.
The set-up fee is frequently refunded by the government
No trustee fees with 401k Easy---ever
No hidden fees with 401k Easy---ever
In the 401k arena, expense fee disclosure, whether to plan participants or plan sponsors, has been notoriously confusing and unclear. The impact of these confusing hidden fees on plan participants' retirement accounts can be very significant over time. As example, consider a hypothetical 401k investment such as a mutual fund, with deducted expense fees of 1.3 percent versus one with fees of just .3 percent. Applied to an initial 401k investment of $5,000, with regular annual investments of $5,000 returning 10 percent, and compounded over 15 years, the difference between the 'low-fee' investment and the 'high-fee' investment adds up to $15,398. That's a significant sum deducted from a participant's retirement savings.
With 401k Easy there are never any "hidden fees" or asset-based fees to contend with, so expense disclosure is a breeze for plan sponsors. In fact, 401k Easy reports to plan participants directly, in their online account statements, that no hidden or other fees are charged.
No asset-based fees with 401k Easy---ever
We do not accept any rebates or revenue sharing of fees deducted from our clients' plan assets unless those fees can be returned to the plan or used to offset plan expenses. Entities that provide and support 401k plan investments include mutual funds managers, fund distributors, asset custodians, asset trustees, investment brokers and advisors, and plan administrators and record-keepers. These entities typically earn at least a portion of their compensation from asset-based fees deducted from plan assets.
Special 401k Fee Disclosure Website
We set-up a special website (www.401kfundslookup.com) to help explain and partially satisfy the 401k service provider fee and 401k investments fee disclosure requirements under ERISA 408(b)(2).
The information in this special website assists plan participants in both understanding the impact fees have on their 401k, and making informed investment decisions.
Your current 401k provider may charge plan termination fees, as it likely has some administrative expenses involved with closing down your existing plan. Contact your current plan provider to learn about any plan termination fees.
You can view all the plan design options available with 401k Easy by scanning through our Conversion Plans Order Form. If you have specific questions, contact us or submit a Conversion Plan Order Form and mark "Unsure. Please contact..." as applicable. Submitting an order form is the most expedient way for us to serve you, even if all you want at the moment is answers to conversion-related questions, because the order form collects pertinent information we likely need to answer your questions. Submitting an order form IN NO WAY obligates you to actually placing an order - no money changes hands - but the form does gather the data we need to accurately answer your 401k-related questions. Oh, and of course we do NOT share your data with any party.
Our goal at 401k Easy is to ensure that all our clients and their employees have 401k plans they feel good about. If your company purchases 401k Easy and then down the road decides the self-service administrative approach is not the right approach for you, give us a call: We can convert your 401k Easy plan into a traditional, full-service plan that will still allow for 24/7 online access for plan participation but with professionals handing the plan administration for you.
US Department of Labor 401k cost comparison worksheet
|SETUP FEES (ONE-TIME CHARGES AT THE PLAN'S OUTSET)|
|New Plan Fee - Baseline Component||$595||$____|
|New Plan Fee - Per-Participant Component||None||$____|
|Conversion Plan Fee (in addition to the above New Plan Fee)||None||$____|
|Federal Document Filing Fee||None||$____|
|ANNUAL FEE - BASED ON PLAN ASSETS|
|ANNUAL FEE - BASED ON PLAN SIZE|
|1 Eligible Employee (plus spouse)||$495||$____|
|2-4 Eligible Employees||$695||$____|
|5-10 Eligible Employees||$895||$____|
|11-15 Eligible Employees||$995||$____|
|16-20 Eligible Employees||$1,295||$____|
|21-25 Eligible Employees||$1,595||$____|
|26-30 Eligible Employees||$1,795||$____|
|31-35 Eligible Employees||$1,995||$____|
|36-40 Eligible Employees||$2,195||$____|
|41-45 Eligible Employees||$2,395||$____|
|46-50 Eligible Employees||$2,595||$____|
|Annual "per participant" fee||None||$____|
|ADMINISTRATION / RECORDKEEPING FEE|
|Annuity Contract Administration Fee||None||$____|
|Daily Valuing and Updating of Account Balances||None||$____|
|Distribution Processing Fee||$30||$____|
|Loan Origination Fee||$30||$____|
|Loan Tracking Fee||None||$____|
|Participant Statement and/or Balance Inquiry Fee||None||$____|
|Payroll Processing Fee||None||$____|
|Trust-To-Trust Investment Transfer Fees||None||$____|
|PLAN COMPLIANCE & TESTING SERVICES|
|ANNUAL TAX REPORTING|
|IRS Form 5500 Information||None||$____|
|Annual Audit Report||None||$____|
|PLAN DOCUMENT AMENDMENT FEE|
|Mandatory Plan Amendment Fees||None||$____|
|Plan Document Determination Letter Fee||None||$____|
|Plan Transfer Fees||None||$____|
|INVESTMENT OPTION FEES|
|Access to Brokerage Window||None||$____|
|Back-End Load Mutual Funds Commissions||None||$____|
|Front-End Load Mutual Fund Commissions||None||$____|
|No-Load (Commission-Free) Mutual Funds||None||$____|
|INVESTMENT MANAGEMENT EXPENSE RATIO|
|Equity Funds (No-Load)||20 BPS per year||$____|
|Bond Funds (No-Load)||15 BPS per year||$____|
|Specialty Funds (No-Load)||40 BPS per year||$____|
|Average Expense Ratios of No-Load Funds||25 BPS per year||$____|
|"HIDDEN" EMBEDDED INVESTMENT EXPENSES|
|Fund Turnover Charges||None||$____|
|Sales Loads and Commissions||None||$____|
|Sub-Transfer Agent (Sub-TA) Fee||None||$____|
|Annuity Termination Charges||None||$____|