How 401(k) Providers Are Priced

• Flat fee. A fixed monthly or yearly base fee paid by the company for plan administration, common with providers aimed at small businesses.
• Per participant. A monthly or yearly charge for each participant or active employee, often added on top of a base fee.
• Percentage of assets. Investment management, and sometimes recordkeeping, charged as a share of plan assets and usually deducted from participant accounts.
• Tiered plans. Editions that add services such as fiduciary support, safe harbor design, advisor access or additional plan features at higher tiers.
• Custom quote. Larger plans or plan conversions are priced after the provider reviews assets, headcount and plan design.

• Number of participants and eligible employees
• Plan assets and the expense ratios of the fund lineup
• Plan design, such as safe harbor, profit sharing or automatic enrollment
• Fiduciary services the provider or a partner takes on
• Payroll integration and the number of payroll systems
• Conversion work when moving from another provider

Fees to ask about before you sign:

• Fund expenses and revenue sharing deducted from participant accounts
• Setup, plan amendment and termination fees
• Per-transaction fees for loans, distributions or rollovers
• Correction costs for late deposits or failed tests
• Advisor fees billed separately from the provider
• Independent audit fees once the plan requires one