Small Business 401k Plan Fees
Small businesses are overlooked in the 401k industry and charged higher fees because they have fewer employee participants and smaller account balances.
At Ubiquity, helping small businesses with affordable retirement plans is, and always has been, all that we do.
It is important to understand the types of fees that may be assessed in a 401k plan and who can pay those fees, so you can make smart choices when it comes to your retirement savings. In fact, the retirement plan rules require the employer offering the plan to keep an eye on plan costs to ensure they are reasonable based on the services received. The employer must pay some 401k fees, and some are deducted from employees’ 401k accounts. Here are the fees that typically occur in a 401k plan and how they can be paid.
The Ubiquity 401 (k) Guide can help you better understand your small business 401(k) options, and help you find the right small business retirement plan.
Plan Administration Fees
Fees for day-to-day operation of the plan, including recordkeeping and trustee services
May be paid by employer or from plan’s assets (debited from employees’ accounts)
Assets Under Management (AUM)/Investment Fees
Fees for investment management, marketing, and distribution of an investment product, including sales charges or commissions
Deducted directly from investment returns in employees’ accounts
Individual Service Fees
Fees for a transaction or service affecting one employee (e.g., loan, investment advice)
Typically charged to the affected employee’s account, but may be paid by the employer
Fees for services primarily benefiting the business (e.g., forming the plan, tax consulting)
Must be paid by employer
Our retirement planning consultants/experts will work closely with you to develop a retirement strategy that meets your needs and delivers beyond what you may have thought possible.
““Meli is amazing! Always ready to answer questions (even the silliest/smallest ones) and never makes me feel ridiculous for asking them. Additionally, she's wonderful at returning calls and really making her clients feel valued and listened to! I feel 100% secure in all things related to retirement because I know Meli has our back :)””