pricing
Employer Administration Fees
one-time install fee: $250
annual fee: $500 + $20 per participant
Employee Expense
annualized program fee total: .65%
This Plan is Right for You if:
⦿ you are starting a new 401k
⦿ you would like an open-universe of funds and ETFs
⦿ you have 1 to 100 employees
Employer Administration Fees
one-time install fee: $250
annual fee: $500 + $20 per participant*
Employee Expense
annualized program fee total: custom quoted
*discounted based on plan size
This Plan is Right for You if:
⦿ you have an existing 401k, or
⦿ you would like an open-universe of funds and ETFs plus individual securities, or
⦿ you have 101+ employees
HOW DO NEW TAX CREDITS APPLY?
SECURE Act provides (2) annual tax credits
that cover a significant portion, or even 100% Of costs,
for the first (3) years that an employer offers a 401k plan
The legislation intends to advance the government’s goals of increasing access to 401k’s
by small business employers, 1 - 100 employees
This credit applies to small employers with up to 100 employees in the preceding year
There are (2) Kinds of Tax Credits As Incentives for a new 401k:
Part 1: Retirement Plan Start-Up Costs CREDIT
The tax credit available for the plan’s first 3 years is the greater of:
(1) $500 or
(2) the lesser of
(a) $5,000 or
(b) $250 x the # of non-Highly Compensated Employees eligible to participate in the plan
You may claim the credit for up to 50% of the ordinary and necessary costs to set up and administer the plan, and to educate your employees about the plan.
Note: For the net amounts payable by the employer, in excess of IRS tax credits, these are deductible business expenses each year.
EXAMPLE
Technology Enterprises has (15) employees. Their 401k costs $250 to set up and $800 annually. The total cost for the 401k in year 1 after the tax credit is $525. In years 2 and 3, the total cost is $400.
Part 2: Automatic Enrollment Credit
The government also encourages businesses to implement automatic enrollment, and incentivizes employers with this additional tax credit of $500 per year for each of the first (3) years.
Note: Automatic enrollment is not required – it is an elective provision. If you choose this design, employees may still make any savings election or choose not to save by simply completing an enrollment form.
EXAMPLE
Technology Enterprises chooses to auto enroll employees at a 3% savings rate. A tax credit is awarded, so the total cost for the 401k in year 1 is just $25. In years 2 and 3, the total cost is $0 because the tax credit exceeds the administration cost.