Assessing Retirement Plan Value - 2d

1.68%
0.67%
1.27%
27%
2%
7%
%
0.36%
1.68%
1.61%
7%
1.23%
0.21%
1.17%
27%
1.2 %1.61%
1.68%
0.58%
0.87%
1.2 %27%
NUMBER
>MORE THAN A
2.27%0.83% 0.78%
1.27%
0.21%
1.68%
1.27%
0.21%
0.47%
1.68%
1.68% 0.68%
0.87%
1.68%
1.27%
0.58%
1.68%
0.27%
2.27%
07
0.230%8%.58%
0.58%
2.27%
0.27%
The following illustration will walk you through the basic services and service providers that may be associated with the cost of
a retirement plan, as well as sources for paying those costs and the various payment choices or fee collection methods available.
0.78%
0.78%
1.68%
0.58%
0.72%
0.78%
0.58%
1.27%
1.68%
1.27%
1.68%
1.27%
1.68%
1.68% 0.83%
1.68%
2.27%
2.13%
1.68%
0.32%
2.27%
2.13%
2.13%
Cost of Providing a Retirement Plan
WHAT DOES IT MEAN?
Generally, there are three sources for paying fees
for retirement plan services:
UNDERSTANDING
RETIREMENT PLAN COSTS
1 Fees can be billed to the plan sponsor and paid directly by
the plan sponsor.
2 Fees can be deducted from participant accounts or netted
from investment return as directed by the plan fiduciary.
REVIEWING PLAN SERVICES
NAVIGATING
COST CONSIDERATIONS
EVALUATING
REASONABLENESS
ADDRESSING
PARTICIPANT QUESTIONS
GLOSSARY OF TERMS
PLAY AUDIO
OVERVIEW
PRINTABLE PDF
TOOLS & RESOURCES
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COST
CONSIDERATIONS
EVALUATING REASONABLENESS
CLICK FOR MORE DETAILS
REASONABLENESS
CONSIDERATIONS
FEE COLLECTION
EXAMPLES
MORE THAN A NUMBER • UNDERSTANDING RETIREMENT PLAN COSTS | 2
3 Fees associated with plan investment options are
retained by the investment provider to help cover
their management costs and a portion of these fees may be
paid to the service provider as revenue sharing and
applied to help cover the cost of the plan’s services.
———————————————————
———————————————————
———————————————————
———————————————————
INVESTMENT MANAGEMENT
PLAN ADMINISTRATION
& RECORDKEEPING
PARTICIPANT COMMUNICATION
& EDUCATION
———————————————————
CONSULTANT/ADVISORY
AUDIT/LEGAL
———————————————————
TRUST/CUSTODY
———————————————————
THIRD PARTY
———————————————————
INVESTMENT PROVIDER
ADMINISTRATOR
———————————————————
FINANCIAL PROFESSIONAL
While there is no “one right way” to pay fees, a plan fiduciary
should develop a prudent process to decide.
———————————————————
CPA/ATTORNEY
———————————————————
TRUSTEE
BUNDLED PROVIDER
PLAN SPONSOR
———————————————————
PARTICIPANT ACCOUNTS
———————————————————
RETIREMENT PLAN
INVESTMENT OPTIONS
BILLED
———————————————————
NETTED/DEDUCTED
———————————————————
INVESTMENT EXPENSE
Investment Mgmt Fees
——————————
Revenue Sharing
PAYMENT
SOURCES
PAYMENT
CHOICES
0.27%
RETIREMENT PLAN VALUE
VALUE RECEIVED
TOTAL COST
Assessing Retirement Plan Value

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