Pricing
No hidden fees or surprise charges
Transparent pricing, the way it should be.
Transparent pricing, so you know exactly what you’re getting and won’t be blindsided by surprise “Administrative fees”.
Did you know: 401k deductions and tax incentives can offset the cost of offering a 401k to your employees.
At Employer 401k, we work with you to help you take full advantage of all available tax credits and incentives in your first 3 years. After that, we employe fiduciary fee benchmarking to ensure you are on top of your fees and able to identify the best pricing and deliverables at a glance.
Small business 401(k) pricing
Plan fees can vary pretty widely, so it’s difficult to get accurate ranges. For example, plans with less than $1 million in assets may cost $5,000-$10,000 per year: an initial startup fee of $500-$3,000, quarterly per-participant charges of $15-$40, and $800-$1,000 in administrative fees*.
Employees generally pay their own 401(k) fees, especially those related to investing. Depending on plan design, employers may cover 401(k) administration costs—or, pass them to employees as flat fees or as a percentage of assets in the plan.
401(k) startup costs
There are generally initial costs to establish a 401(k) plan, which cover:
- Setting up and administering your plan
- Educating your employees about your plan
You can expect to pay a one-time start-up fee between $500 to $1,500* However, eligible employers may be able to claim a startup tax credit of up to $5,000, for three years, to cover the “ordinary and necessary costs” of establishing a qualifying plan.
Optional 401(k) matching costs
Employers can opt to match a portion of their employees’ contributions up to a certain dollar amount or percentage. Employer matches are entirely optional and businesses can choose to:
- Match contributions dollar for dollar,
- Match at a specific percentage, or
- Establish a hard dollar-based cap (instead of limiting match contributions to a percentage of the employee’s total salary)
How much you match dictates how much your business is responsible for paying. 72% of plans that offered a matching contribution provide a single-tier match formula, such as $0.50 on the dollar on the first 6% of pay. However, businesses can write off contributions and receive ongoing tax benefits (more on this below).
Get connected with our team to see how we can best assist your current 401(k) retirement needs.
