Need a Small Business 401K Plan Pro Near You?

Find Local Small Business 401K Plan Companies & Get Free Price Quotes. No Obligations & No Credit Card Needed.

Get Free Quotes >>

Search Our Site

Find Us on Facebook

Employee Benefits Articles

How Much Does a Small Business 401K Plan Cost?

Get Free Small Business 401K Plan Price Quotes



Employee Retirement Plan Prices

Choosing a 401K offering for your small business can be confusing. There are so many options. Nevertheless, it's a wonderful benefit to offer to employees. The social security benefits are uncertain for the future. Even assuming social security benefit laws will stay the same, they are not nearly enough to maintain a lifestyle congruent with an employee's current earnings.

Useful 401K Resources

U.S. DOL guide to understanding small business 401K plans.

Understanding Retirement Plan Fees and Expenses:

Small Business 401K Plan Average Costs

For a traditional 401K plan, most businesses should plan to spend $5,000 to $10,000 per year. The majority of these expenses will come from administrative fees. For example, a company with less than $1 million in assets might pay $800 to $1,000 in annual administrative fees, plus a quarterly charge of $15 to $40 for each plan participant. Initial set up fees run $500 to $3,000, depending on the size of your company and the benefits you select.

Simple 401Ks are less expensive. Expect to pay about $500 to $1,000 per year, plus $20 to $50 for each plan participant. Administrative services are billed at an hourly rate, generally $100 to $300.

Other fees you might incur include:

  • $800 to $1,500 to rollover assets from another plan
  • $100 to $300 per hour for investment advice and initial consulting
  • $800 to $2,500 per year for discrimination testing to make sure your plan is properly balanced between managers and rank-and-file employees

Some companies choose to pass some of these fees on to employees. But, most pick up the tab, themselves. It's an investment in attracting and retaining a strong workforce. The largest accounts may be able to negotiate waving some of these fees.

Use Our Free Service and Find Small Business 401K Plan Companies Near You


Join the Convo - How Much Did You Pay?