Forums
401(k)
Benefits & Compensation
401(k)
Exchange ideas about health plans, retirement, work/life benefits, and employee assistance.
What are reasonable fees and expenses under a 401(k) plan? We offer a bunch of different investment options through ING. The fees and expenses are 1.96% on average. The target date funds are all over
1
Cat:Topic ForumsForum:ForumId52
Cat:Topic ForumsForum:ForumId52Discussion:DiscussionId36804
Forums » Topic Forums » Benefits & Compensation » 401(k)
|
401(k)
posted at 11/15/2010 3:27 PM EST
|
Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
We had to honestly step back and re-evaluate having a 401(k) at all unfortunately at our small company. Due to the economy we cut salaries and stopped the match and participation dropped to 1 (me). We couldn't justify keeping the plan at all. So we terminated it in the summer of 2009. Our total balances were only about $300,000 and we were paying at least 2% between services/fees/TPA and fund fees. I have to agree that IRAs were just much cheaper.
|
|
|
401(k)
posted at 11/17/2010 9:53 AM EST
|
|
Posts: 2
First: 11/17/2010 Last: 11/18/2010 |
I work for a TPA/recordkeeper that is officially investment agnostic, and we do not keep revenue sharing fees, (such as 12b-1 fees et al- which you often see on ING platforms), as a result, advisors who work with us tend to pick the lowest cost funds, generally ETFs. All in, for TPA work, recordkeeping, advisory fees, custodial fees, and investment expenses, we have plenty of Plans in the 1.4% expense bracket with under $1MM in assets. Plans more in the Vanguard sizes can get as cheap as 0.90% or less -all in. The bigger they are the cheaper they get. Admin expenses get amortized over a larger group -and more competitition shows up for larger Plans too.
The cost differential between an IRA and a 401(k) is primarily for the added administration requirements and liability associated with qualified Plans. Testing, filings, investor education, payroll interaction, and participant interaction, (communications, loan processing, distribution processing, phone/e-mail inquiries), all have costs associated with them. |
|
|
401(k)
posted at 11/18/2010 7:44 AM EST
|
|
Posts: 2
First: 11/17/2010 Last: 11/18/2010 |
I appreciate that this is not an advertising forum, so I'll simply state the company web address, www.rpgny.com. |
Forums » Topic Forums » Benefits & Compensation » 401(k)
