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Employee Fiduciary’s
401(k) plans are designed to keep
as much money in the market, working
for employees’ retirement.
Our
full-service 401(k) costs $1,500 per year for the first 30 eligible employees and then $30 per
additional eligible employee thereafter. (So if you have 30 employees, the fee would be $1,500. If you have 31, it would be $1,530). That's it. No hidden
fees.
But
that's just the start: We
itemize and forward to participants any "revenue sharing" and "12b-1" payments
we receive. |
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Participants can save
thousands each year by selecting an investment line up of 100% institutionally-priced mutual funds, with average expense ratios less than 0.20%.
All-in, for companies with less than $15 million in plan assets, this is the lowest total cost, full service 401(k) in the country. |
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Like Vanguard Funds?
Employers can now offer employees the Signal Share Class of Vanguard index funds, which have even lower expense ratios than the standard low-cost Vanguard index funds. Expense ratios are as low as 0.06%. There is no minimum plan size or minimum purchase requirement. If you want other Vanguard Funds, no problem; we offer them all.
Like DFA?
Employers, working with their advisors, can also offer employees low cost DFA Funds, without mark-up. These are traditionally offered only to the large institutions and pension plans. |
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The lower the plan fees; the more your employees get to keep.
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Comparison
of Employee Fiduciary Fee Structure
vs. Typical Service Providers |
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Typical 401(k) Cost Schedule
(for 65 employees
and a $3 million plan)
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Fee
Types |
Employee
Fiduciary |
Insurance Company 401(k)
(offering
group variable annuity plan )
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Mutual
Fund
Sponsored 401(k)
(offering company’s
own funds & “pay
to play” investments) |
Set
up & installation |
$1,000
(one time cost) |
$1,500
(one time cost) |
$0 |
Record
keeping & administration |
$2,550
($1,500 for 1st 30 employees, then $30 per head) |
$2,550
(base charge $1,250
+
$20 per head) |
$0 |
Contract
asset- based "wrap" |
$0 |
$16,488
(0.5496% annual charge) |
$0 |
Investment
Management Fees† |
$6,000
(less than 0.2%) |
$18,000
(0.6% of asset value) |
$42,000
(1.4% of asset value) |
Sales Charges, 12b-1
Fees & Other Revenue Sharing†† |
$0 |
$27,000
(1% on 90% of funds) |
$27,000
(1% on 90% of funds) |
Total
Costs |
$9,550
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$65,538
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$69,000 |
| † These
fees, levied on individual
investors by mutual
funds, are usually
disclosed in a separate
investment prospectus
and excluded from a
401(k) provider’s
proposal and contract. |
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| †† Employee
Fiduciary forwards to participants any revenue sharing and 12b-1 payments it receives. |
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While
the mutual fund-sponsored plan,
with $0 up-front costs, may appear
to
be
the cheapest
option, it is actually the most expensive. |
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It
is important to note the effect of
high investment-based fees on individual
account balances over time. With
expensive asset-based fees, the
more people save, the more they are
penalized. |
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For
example, if you participated in the
mutual fund-sponsored plan and had
a balance of $50,000, you would pay
$1,150 a year in expenses.
If your plan grew to $70,000, you
would pay $1,725 for the same services. |
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As a full-service provider, Employee Fiduciary provides daily recordkeeping and all compliance services, including statements, participant web, same-day contribution processing and trading, and TPA services (plan design consultation, documents, testing, and preparation of the plan's tax return). To learn more, call (877) 401-5100 or request a proposal at www.employeefiduciary.com/rfp.htm
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