401k Plan Fees

What kind of costs do I have to incur when I want to set up a 401K plan for my employees? William McDougherty, Ohio, runs a computer service outfit with a partner and plans on employing more staff.

Setting up a 401K plan was a complex affair that also involved some significant expense back in days before the internet changed the world as we know it. Today, having your small business 401K launched and fully functional takes just a few hours at most and hardly sets your business back in financial terms. The fact that these let you track and update your employee plan periodically gives you and your employees a great deal of control over the 401K and also keeps costs low.

There are many efficient 401K suites offered online that take the bite out of the complicated set up and administration process that many business owners still associate with this retirement plan. One good example would be the http://runityourself401k.com. This 401K tool lets you create your own plan at a price that is advertised as the lowest in the market. A 25 participant plan costs less than $1400 per year when you set up your 401K with this tool.

Some of the fees and charges that you may incur include a one time set up fee, administration charges, investment management fees, expenses pertaining to mutual fund investments and 12-b fees. There are some plans that can set you back by as much as 2% of your plan’s assets each year, although internet tools are generally quite affordable. It is a sound idea to compare prices of various 401K options before you finalize on one. During this comparison, remember to take the total cost of the plan into consideration rather than comparing specific fees and charges. Some of the fees may not be very apparent at first glance so asking the 401K provider some specific questions about overall plan costs is definitely a good first step to take.

About Elliot Earl, Director, Pension Trade Association
Director, Pension Trade Association Founded in 1982, the Pension Trade Association [California Domestic Nonprofit Corporation #C1629080] is dedicated to helping workers save for their retirement through expanded coverage of 401k -type defined contribution pension plans.

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