Helping You Assess Retirement Plan Fees

Illustration of web with readings from left to right; Plan Sponsor or employer; Flat Fees (Administrative); Plan Administration (TPA); Plan Participants or Employees; Per-Participant Administrative Fees (e.g., loans & distributions); Commissions & Fees (e.g., wrap frees); Management Fees (deducted from fund prior to performance reporting to participants); Plan Recordkeeper (e.g., insurance firm); Marking/Administration Revenue Sharing; Advisor Commissions/Fees (e.g., 12(b)1 pass through); Management Concession (12(b)1, Sub-TA, Other); Plan Investments (e.g., mutual fund company); Financial Advisor(s)

This example is intended solely as an illustration of how fee flows may work in one type of 401(k) plan. Every plan is different and should be evaluated based on its specific vendors and structure. Let ARK Wealth Advisory Group provide a no-cost fee benchmarking report for your retirement plan.

Cost matters, but so does the value you receive.

The 401(k) industry has been moving toward a higher level of fee transparency. The above diagram illustrates how fee flows may work in a typical 401(k) plan. A low-cost plan does not necessarily equal the best plan for your employees. The Department of Labor states that fees must be “reasonable” rather than “low,” but how can employers determine if fees are “reasonable?” They must examine which services are rendered in order to determine the “value” received from the different service providers of their plan. ARK Wealth Advisory Group can help you compare your fees, define their “reasonableness,” and provide you with a high level of service to ensure that you (and your employees) receive value for the fees that you pay.