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American 401k Expense Detail |
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Have you considered total 401k expenses prior to selecting your provider?
Prior to your selection, a study of complete costs can benefit your business and the employees over many years of retirement investing.
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for a complete expense schedule. 
Typical Fees and Expenses
In making an informed decision, it is important to consider that “cost-effective” alone does not always make for the best 401k.
Consider fees as one of several factors including investment flexibility, employee education, and comprehensive services provided.
Pricing is typically driven by Plan size in assets and number of participants.
What is a fair price for your Plan?
Within the broad categories of Record Keeping Fees and Investment Expenses, this is a typical range within the 401k industry:
Record Keeping
A business with … | should pay no more than … |
| 1 employee (single 401k) | $250 per year. |
| 2 to 20 employees | $1,000 per year. |
| 21 to 50 employees | $1,500 per year. |
| 51 to 99 employees | $2,500 per year. |
| 100+ | specialized pricing. |
These prices should include all standard administration, record keeping, compliance duties, and reporting, after the initial plan setup.
Investment Expenses
A business with … | should have total investment expenses in the range of …
|
| 1 to 100 employees, new plan | 1.0% to 2.0%
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| existing assets | specialized pricing. |
There are also one-time costs associated with the establishment of a new 401k plan or with the conversion of a plan's records to another administrator's custody.
For larger plans, these costs can typically be specially priced to as low as $0.
Source: U.S. Department of Labor: A Look at 401k Plan Fees, Revised October 2010.
A complete study of 401k Plan Fees and Expenses can be found here:
http://www.dol.gov/ebsa/publications/401k_employee.html
American 401k Expense Detail
This section will assist during your review by helping to categorize fees and expenses, and how these are paid (by the employer or the participant).
Business Expenses
| American 401k | Other Provider (1) | Other Provider (2) |
Setup Fees (one-time)
|
| Installation | $250 | | |
| Plan Design | $0 | | |
| Document & Filing Fee | $0
| | |
| Conversion Fee (one-time) |
| Existing Plan | $500 | | |
Annual Fees (recurring) |
| Base Fee | $500 | | |
| Per Participant Fee | $20 | | |
Custodian Fee
Example: $300,000 in assets = $300
Note: Minimum Annual Custodian Fee is $250, Maximum is $1,250.
| .10% | | |
| Asset Management Fee | 0% | | |
Administration and Record Keeping |
| Payroll Processing | $0 | | |
| Participant Statements | $0 | | |
| Plan Sponsor Online Access | $0
| | |
| Annual Valuation | $0 | | |
| Distribution Processing | $50 | | |
Compliance Services |
| Preliminary ADP Testing | $0 | | |
| ADP Testing | $0 | | |
| Non-discrimination Testing | $0 | | |
| 5500 (signature ready) | $0 | | |
| Federal Filing Extension | $0 | | |
| Annual Audit | $0 | | |
Enrollment & Education |
| Enrollment Kits | $0 | | |
| Employee Meetings | $0 | | |
Plan Design |
| Safe Harbor | $0 | | |
| Matching | $0 | | |
| Profit Sharing | $0 | | |
| Plan Amendment Fee | $125 | | |
Total Annual Business Expense
Base Fee + Per Participant Fee + Custodian Fee
Example:
If your new 401k has 20 participants, and $100,000 in assets, you would pay:
$500 + ($20 x 20) + $250 =
$1,150 for that year.
If you elected to have the custodian fee billed to Plan assets, you would pay:
$900 for that year.
Special Note:
Businesses with fewer than 100 employees are eligible for an annual tax credit of 50% on up to $1,000 of expenses incurred to establish or administer a new plan. The credit is available for the first three years of the new plan.
Participant Expenses
| American 401k | Other Provider (1) | Other Provider (2) |
Enrollment & Education |
| One-On-One Guidance | $0
| | |
| Online Morningstar.com Reports | $0 | | |
| Morningstar Snapshot Reports | $0
| | |
| Online Retirement Calculator | $0 | | |
| Asset Management Fee | 0% | | |
Investments |
Expense Ratio
Note: Shares As Offered Are Exclusively Retirement Share Class | Detailed By Prospectus | | |
| Record Keeper Transaction Fee | $0 | | |
Distributions |
| Loan Origination Fee | $100 | | |
| Loan Annual Fee | $50 | | |
| Hardship Withdrawal Fee | $50 | | |
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Important Information
All administrative and record keeping services are offered by PB&H Benefits, LLC.
The custodian trust company is Mid Atlantic Trust Company (MATC), providing a state-of-the art trading and reporting system that integrates record keeping, trust accounting, and straight-through processing with access to over 16,000 mutual funds in underlying accounts.
All investments are offered by Registered Representatives of MML Investors Services, LLC, Securities are distributed through MML Investors Services, LLC, Member, SIPC. Supervisory Office: 2 Bala Plaza Suite 901 Bala Cynwyd, PA 19004 Tel (610) 660 9922.
Investment education is provided by Registered Representatives of MML Investors Services, LLC.
Note that our role as financial professionals, with respect to the 401k plan, is not to provide investment advice. We offer employee education including fund information and portfolio design using models that match the employee's intended level of risk and investment goals.
In no way do we endorse any recommendations, advice, or opinions contained in Information developed by third party providers and mentioned in this website. We merely provide access to such information as a convenience to help you consider your design and investment selections. Any investment decisions you make are based solely upon your evaluation of financial circumstances and investment objectives, in the best interests of your Plan.
Mutual Funds are sold by prospectus. You should carefully consider a fund’s investment objectives, charges, expenses, and risks before investing. The fund's prospectus, which can be obtained online (or hard copy) by calling your Registered Representative, contains this information and other facts about the fund. Please read the prospectus carefully before you invest or send money.
We do not offer tax planning or legal advice. Please consult your CPA or attorney for specific tax implications and legal matters pertaining to your Plan.
Registered Representative Information
John M. Novak is a Registered Representative of and offers securities and investment advisory services through MML Investors Services, LLC, Member, SIPC.
Supervisory Office:
First Financial Group
2 Bala Plaza Suite 901
Bala Cynwyd, PA 19004
Tel (610) 766 3014
Administrative and record keeping services offered by PB&H Benefits, LLC, and custodian services offered by Mid Atlantic Trust Company are not sponsored or offered through First Financial Group or MML Investors Services, LLC. PB&H and MATC are not affiliates or subsidiaries of MML Investors Services, LLC.
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