401k Averages Book Finds 401(k) Plan Fees Continue to Decline

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Book includes three new infographics on small 401(k) plan costs.

We think the addition of the three infographics helps tell an even better story of how small 401(k) fees breakdown,” said Joseph Valletta, author of the 401k Averages Book. “Each infographic shows the 5-year trend of total plan costs, range of per participant costs and other key data points

The new release of the 401k Averages Book 20th Edition shows the average total plan cost for a small retirement plan (100 participants/$5,000,000 assets) declined from 1.24% to 1.23% over the past year, while the average total plan cost for a large retirement plan (1,000 participants/$50,000,000 assets) declined from 0.93% to 0.91%.

The 401k Averages Book now includes three easy to read infographics illustrating small plan costs.

“We think the addition of the three infographics helps tell an even better story of how small 401(k) fees breakdown,” said Joseph Valletta, author of the 401k Averages Book. “Each infographic shows the 5-year trend of total plan costs, range of per participant costs and other key data points.”

There is an infographic for 401(k) plans with $500,000, $2,500,000 and $5,000,000 in plan assets.

Other Key Findings:

  •     Smaller plans pay higher fees than large plans: The small plan with $5,000,000 in assets costs 1.23%, while the plan with $50,000,000 in assets is 0.91%
  •     Investment fees continue to decline: All scenarios (expect three) saw a year over year decrease in total investment costs of between 0.01%-0.03%. Larger plans led the way experiencing greater decreases. These investment fees are typically paid by participants.
  •     401(k) total plan costs declined for most size plans: 22 of 24 scenarios saw a decrease in total plan costs from last year, while the other two remained unchanged.
  •     Wide range between high and low-cost providers: The range of cost is greatest within the small plan market. The range of a plan with $1,000,000 in assets and 100 participants ($10,000 average account balance) is 0.74% to 2.73%.

About 401k Averages Book
Published since 1995, the 401k Averages Book (http://www.401ksource.com) is the only resource book available for non-biased, comparative 401(k) average cost information. It's designed to provide financial professionals with essential 401(k) cost information needed to determine if their 401(k) plan costs are above or below average.

The 20th Edition of the 401k Averages Book is available for $95 and can be purchased by calling (888) 401-3089 or online at http://www.401ksource.com.

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Joseph W. Valletta
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