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How much should testing cost for a 9 million dollar 401(k) plan ( new comparability feature) with 38 participants.

Aug 10, 2015 by Linda in  |  Flag
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For an unbundled plan I help with (TPA work, administration, and fund expense are all separate and you know what each costs vs bundled into the fund expenses). The new comparability pricing regardless of number of employees or asset size is:

$775 Minimum fee for 3 hours of work. $225 per hour above 3 hours.

For the 65 ish participants (around $7M in assets but it should not matter for this test), it has never cost more than the $775 minimum. There generally aren't many issues with this plan though.

Comment   |  Flag   |  Aug 11, 2015

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Lyle Himebaugh Level 20

A full service record-keeper with TPA should be about 5bps and 80 per head. That includes signature ready 5500, 404 and 408 and a dedicated admin. If you would like to discuss further, please call Lyle Himebaugh at 203-210-7814. www.granitegroupadvisors.com

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Todd Warner Level 8

Hi Linda,

As you can see from the previous answers, numbers can be provided for what a TPA should charge for a plan of your size. One of the aspects of answering a question like this is to try and put myself in your position and understand your circumstances so we can respond to what you're really asking. Sometimes a straight forward number is what you're looking for but sometimes it's something else. What I'm getting at here is that if you have a good adviser, he/she should be your partner when it comes to assessing plan fees and if they're reasonable for you. If you need to, ask your adviser for some different recommendations for TPA's if you need to shop the market and compare fees.

Comment   |  Flag   |  Aug 12, 2015

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Hey Linda,

Regarding the costs there are several different avenues you can and should look into for a plan of your size. There are many things to consider, and several ways to go about how you can pay the fees. If you are interested in hearing more, I can point you in the direction of about 6 different providers that can assist you and I will help you understand the fees involved in all the plans. Feel free to contact me anytime at my office, 631-957-2317. I look forward to helping you Linda. I hope you have a great day.

Bill Koehler

Comment   |  Flag   |  Oct 21, 2015

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