Because we are independent 401(k) advisors, we have the opportunity to speak with a number of organizations that use Fidelity as a 401(k) recordkeeper, and have observed a variety of overall fees on the platform. Some companies pay as little as 0.53%, while others pay over 1% of assets. This huge difference for similarly-sized small business plans is meaningful, given the impact fee reductions can have on your employees' savings at retirement. See the table below for real data on what similar plan sponsors pay for their Fidelity 401(k), and find out where in the spectrum your business falls.
The following chart contains information about fees paid by Fidelity clients. We collected this information as part of a fee benchmarking analysis we conducted to help plan sponsors understand what they were currently paying. This is an interesting range of costs, in that companies may be generally of a similar size, yet that may pay a meaningful difference in asset based costs. We believe that a well managed small business Fidelity 401(k) should cost well below 0.75% in total fees, and want to talk to you if you are currently paying more.
|# of Employees||Plan Assets ($)||Total Fees (% of assets)|
As an open-architecture recordkeeper, Fidelity allows you and or your 401(k) advisor to choose from a huge variety of investment options. High cost investment choices can add a lot in expenses to a retirement plan, which is why ForUsAll recommends low-cost, passive 401(k) investments. Reduced costs may drive significantly improved retirement outcomes for your employees - we’d love to talk with you about your plan’s costs!