401k prices, 401k price comparisons and 401k plan fees and cost

Pricing and Price Comparisons

401(k) Easy Online run-it-yourself 401ks save you money

401k Plan Fee Schedule

The 401k Easy Online setup fee is a one-time charge

401k Easy Online pricing versus The Online 401k and other bundled 401k plans

Everything is included with 401k Easy Online

US Department of Labor 401(k) Cost Comparison Worksheet

60-day money-back guarantee

Uncle Sam wants to help you launch your 401k

Free technical support

Low Cost 401k plan conversions

Free IRS reporting help

No trustee fees

Watch for hidden fees

Our Policy Regarding All Asset-Based fees

Even taxes, shipping and handling are included

Save Money on 401k Plans with 401(k) Easy

[topic 1]

401k Easy Online pricing covers absolute access to your Plan Sponsor Gateway and Plan Participant Gateway and all the functions they contain as well as any help you may need with using your online system.

-- The only thing you'll ever pay to Pension Systems Corporation aside from your annual fee (see below) is a one-time only $995 set-up fee, which covers the cost of complete customization and configuration of your 401k Easy Online. Customization includes your choice of plan options, your choice of any no-load mutual funds and/or self-directed brokerage accounts for your company's plan, customized signature-ready prototype plan documents, and more.

-- Again, the one-time $995 set-up and customization fee occurs in the first year only. From then on, ALL YOU PAY Pension Systems Corporation IS YOUR RELEVANT ANNUAL FEE (see below).

-- With 401k Easy Online there are no additional fees, and no hidden processing or administration fees. After the plan has been set-up and successfully launched, there may be charges for additional support or training, but theses fees are both affordable and 'money back guaranteed'.

-- For these reasons and more, our web-based 401(k) has earned the right to be called 401k Easy Online.

Plan Size

Annual Fee

1 eligible employees
(plus spouse)

$695 a year--complete

2-4 eligible employees

$1195 a year — complete

5-10 eligible employees

$1295 a year — complete

11-15 eligible employees

$1495 a year — complete

16-20 eligible employees

$1695 a year — complete

21-25 eligible employees

$1895 a year — complete

26-30 eligible employees

$2095 a year � complete

31-35 eligible employees

$2395 a year — complete

36-40 eligible employees

$2695 a year — complete

41-45 eligible employees

$2995 a year — complete

46-50 eligible employees

$3295 a year — complete

more than 50 eligible employees

$3295 plus $275 per each additional 5 eligible employees

The first year only, there is also a $995 one-time plan setup and software customization fee. This fee does not vary with plan size. A $30 charge is assessed to cover additional processing costs associated with the following transactions, on a per-incident basis: loan disbursements, distributions, QDROs, compliance testing corrections and hardship withdrawals. There is a plan termination fee of $50 per plan participant.

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[topic 2]

One of the great things about 401k Easy Online is its adaptability. Our IRS-approved prototype 401k plan includes a host of customization choices (see below), and our web-based 401k plan administration system includes additional customizable administrative features.

-- Our 401k experts can help you understand your 401k Easy Online plan and 401k plan administration options, so you can make educated decisions as to which are most desirable for your company and its 401k plan.

-- Our technical experts code your company's plan with your customization decisions, empowering your web 401(k) to streamline 401k management and automate most of its functions. Plan administration via 401k Easy Online takes most small businesses less than 20 minutes a month — and saves them thousands of dollars a year.

-- The charge for adapting IRS-approved plan documents and customizing 401k Easy Online to fit your company's needs is only $995. This fee does NOT vary with plan size, and it is charged ONLY at your plan's outset, not in any subsequent years.

-- If in subsequent years you decide you want to make substantive changes to your 401k plan, that's no problem. Please see below under Future Changes.

401k Easy Online customizable 401k plan items include…

-- Age, length of service, and other 401k plan participation requirements

-- Automatic 401k enrollment options

-- Employer matching, profit-sharing and/or qualified non-elective contribution rates, if any

-- 401k vesting schedules for relevant employer contributions

-- 401k loan availability

-- 401k discrimination testing/401k compliance testing options, including options associated with running your 401k plan as a safe harbor 401k plan, if you so choose

See our Order Form for the options currently available under each of these 401k customization items, or go to our Plan Options page to view a chart listing the 401k options currently allowed by the IRS and the options we typically recommend for most 401k Easy Online small business 401k plans.

Future Changes
You don't ever have to feel locked in to your 401k plan customization decisions with 401k Easy Online. For instance, some companies choose to exclude 401k loans in the early years of their plan, then add the option in at a later date.

-- We can modify your online 401k plan design for you any time you wish. However, we reserve the right to charge for changes initiated by you that require us to recustomize your 401k software and/or official 401k documents. The maximum charge for recustomization work is $995 per instance, depending upon the complexity of the changes required.

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With 401k Easy Online you save an average of 60% to 80% — every year!

According to HR Investment Consultants in Towson, MD, publisher of the "401k Provider Directory, "the cost of running a 401k plan with 25 participants and $750,000 in assets can range from as little as $6,750 per year to as much as $20,000, depending on which 401k vendor you select. (Sources: Nation's Business, September 1998, Myers, Randy "Your 401k Plan May Cost You Too Much." Business Week Online, July 2000, Brenner, Lynn "A Wealth of Choices.")

-- A 401k Easy Online 25-participant plan costs only $1895/yr (plus the first-year-only, one-time setup fee of $995)

-- The national average for a 25-participant plan is a whopping $6,750/yr to $20,000/yr (plus plan setup fees and minus the flexible 401k options that are all free with 401k Easy Online.

[topic 3]

We compared the cost of a complete, fully-customized 401k Easy Online system with the cost of bundled 401k plans offered by a broad cross-section of major national vendors that allow for self-directed discount brokerage accounts and/or no-load mutual fund families as your 401k investments.

-- It's not a perfect comparison, of course: Their 401k plans often include cumbersome off-site 401k administration, ours include superior investment choice, superior plan flexibility, superior asset security, employee statements on demand, unlimited compliance testing (with results in seconds), IRS 401k reporting help, and a 60-day money-back guarantee.

-- We found that 401k Easy Online clients save an average of 60% to 80% a year off the lowest priced national vendor's bundled 401k plan. It's a savings of 60% to 80% for about 20 minutes of online data entry work monthly!

-- Take a look at the chart below for some price comparisons for 20 and 100 person plans — and note that the comparisons don't even include data about how much you'll save if your 401k will have 15 or fewer eligible employees: Our smallest 401k Easy Online plans (for up to four employees) cost only $1195 a year, and those accommodating up to 20 eligible employees cost only $1695 a year. Few other vendors offer such price reductions on very small plans.

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Comparison of 401(k) Easy Online Vs. The Online 401k



ANNUAL PRICING	401(k) Easy Online	Online 401(k)
2-4 eligible employees	$1,195	$2,100
5-10 eligible employees	$1,295	$2,100
11-15 eligible employees	$1,495	$2,580
16-20 eligible employees	$1,695	$2,580
21-25 eligible employees	$1,895	$2,580
26-30 eligible employees	$2,095	$2,580
31-35 eligible employees	$2,395	$3,300
36-40 eligible employees	$2,695	$3,300
41-45 eligible employees	$2,995	$3,300
46-50 eligible employees	$3,295	$3,300


INVESTMENT OPTIONS	UNLIMITED selection of no-load funds, INCLUDING ACCESS TO Fidelity Funds and Vanguard Funds, or self-directed brokerage accounts. No hidden fees or charges	No access to Fidelity Funds or Vanguard Funds. Extra charges for self-directed brokerage accounts.

CONVERSION PLAN SET-UP FEE	$995	$1,495

ANNUAL LOAN FEE	NONE	$95/incident

DISTRIBUTION FEE	$30/incident	$95/incident

	Baseline Retail Price (20 person plan)	Baseline Retail Price (50 person plan)	Notes, Additional Fees
401k Easy Online	$1,695/yr*	$3,295/yr*	$995 first-year-only setup fee* Unlimited investment choice (both in terms of absolute number as well as type of investments) No Hidden Fees or Commissions.
Online 401K	$2,580/yr	$3,300/yr	Set-up fee for conversion plans is $1495. Online 401(k) charges $95 for each distribution and/or loan per year, and extra fees for access to self-directed brokerage accounts. Very limited investment selections, with no access to Vanguard Funds or Fidelity Funds. Possible hidden fees or costs.
EZ401	$2,520/yr ($1800 annual fee + $36/partic. fee)	$3,600/yr ($1800 annual fee + $36/partic. fee)	$401 setup fee $125/loan $100/distribution certain investment fees may apply (in addition to any normal asset-based fees) Prepackaged investments only with hidden investment fees and costs.
Fidelity e401k	$2,350/yr ($1750 annual fee + $30/partic. fee)	$3,250/yr ($1750 annual fee + $30/partic. fee)	$750 setup fee $75/loan $25/distribution $1000 plan transfer fee (if applicable) Nondiscrimination testing fee of $0-$1000 (fee contingent upon plan design) Fidelity Funds investments only
Intuit UniPlan 401(k)	$2,040/yr ($1,320 annual fee + $36/partic. fee)	$3,120/yr ($1,320 annual fee + $36/partic. fee)	$1,000 setup fee $150/plan amendments Limited investment choices-- Prepackaged mutual funds with approx. average expense ratio of 1.5% plus additional hidden fees and costs.
Principal ImpactPlus	$2,300/yr ($1700 annual fee + $30/partic. fee)	$3,200/yr ($1700 annual fee + $30/partic. fee)	$500 setup fee $40/loan + $8/quarter paid by participant Principal Funds investments with hidden fees and costs.

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[topic 4]

401k Easy Online includes EVERYTHING you need to provide your company with a great 401k plan right from any computer with Internet connection in about 20 minutes a month (for most small business 401k plans).

401k Easy Online includes…

An IRS-approved prototype 401k plan
Our IRS-approved prototype 401k plan is replete with 401k plan customization options that enable your company to offer a 401k plan from which your employees can truly benefit.

401k online system
We customize our powerful yet easy-to-use web-based 401k plan administration system to the exact 401k plan and 401k plan customization options you choose for your plan. The customization information works in conjunction with the up-to-date IRS and other governing regulations programmed into your software to streamline your 401k's operation while keeping you apprised of your plan's health and growing wealth. Your online system has built-in safeguards barring you from running your 401k plan under the wrong rules, and it is updated continually to conform with ever-changing regulations.

401k help
You receive free, professional help with understanding your 401k plan management options as well as running your 401k Easy Online. Plan operation help includes a fantastic 401k Plan Management Guide as well as both free and affordable fee-based technical support.

401k investments
401k Easy Online lets you choose both the investment approach (self-directed brokerage accounts and/or no-load mutual fund family) and the specific investment provider(s) for your 401k plan. No other 401k plan offers greater investment flexibility. Visit our Investments pages for specifics, including listings of potential investments.

Plan-specific 401k forms and materials
Our online plan-specific 401k participation and employee education forms and materials explain 401k concepts (401k loans, 401k enrollment, 401k investing, etc.) to your employees while gathering the data needed to run your company plan. Included is an introductory slide show in convenient video format for introducing your employees to 401k plans and its tremendous savings potential.

IRS reporting help
Our 401k FedForms website (www.401kfedforms.com) tells you which federal reporting forms are relevant to your particular 401k plan, then shows you annotated versions of each relevant Form or Schedule (Form 5500, 1099-R, etc.) so you know exactly where within your 401k software to locate needed information. 401k FedForms even includes ready-to-complete Summary Annual Report PDFs that take just moments to fill in!

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[topic 5]

"US Department of Labor 401(k) Cost Comparison Worksheet" (click to view pdf version)

Expense Category	Expense Item	PC-Based 401kEasy	Web-Based 401kEasy Online	Brand X
One-Time Set-Up Fee
	New Plan Set-Up (one-time)	$795	$995	$
	Conversion of Existing Plan Fee (one-time)	$500	$500	$
	Per-Participant Fee (one-time)	$0	$0	$
	Federal Document Filing Fees	$0	$0	$
Annual :Asset-Based" Fees
	Annual Asset-Based Fees	$0	$0	$
Base Annual Plan Fee
	1 eligible employee (plus spouse)	$495	$695	$
	2-4 eligible employees	$695	$1,195	$
	5-10 eligible employees	$895	$1,295	$
	11-15 eligible employees	$995	$1,495	$
	16-20 eligible employees	$1,195	$1,695	$
	21-25 eligible employees	$1,395	$1,895	$
	26-30 eligible employees	$1,595	$2,095	$
	31-35 eligible employees	$1,795	$2,395	$
	36-40 eligible employees	$2,095	$2,695	$
	41-45 eligible employees	$2,295	$2,995	$
	46-50 eligible employees	$2,495	$3,295	$
	Annual "Per Participant" Fee	$0	$0	$
Administration/Recordkeeping Fees
	Annuity Contract Administration Fee	$0	$0	$
	Daily Valuing and Updating of Account Balances	$0	$0	$
	Distribution Processing Fee	$35	$0	$
	Loan Origination Fee	$35	$0	$
	Loan Tracking Fee	$0	$0	$
	Participant Statement and/or Balance Inquiry Fee	$0	$0	$
	Payroll Processing Fee	$0	$0	$
	Trust-To-Trust Investment Transfer Fees	$0	$0	$
Plan Compliance and Testing Services
	Nondiscrimination Testing	$0	$0	$
Annual Tax Reporting
	IRS Form 5500 Information	$0	$0	$
	Annual Audit Report	$0	$0	$
Plan Document Amendment Fee
	Mandatory Plan Amendment Fees	$0	$0	$
	Plan Document Determination Letter Fee	$0	$0	$
	Plan Transfer Fees	$0	$0	$
Investment Option Fees
	Access to Brokerage Window	$0	$0	$
	Back-End Load Mutual Funds Commissions	$0	$0	$
	Front-End Load Mutual Funds Commissions	$0	$0	$
	No-Load (Commission-Free) Mutual Funds	$0	$0	$
Investment Management Expense Ratio
	Equity Funds (No-Load)	20 BPS/yr	20 BPS/yr	$
	Bond Funds (No-Load)	15 BPS/yr	15 BPS/yr	$
	Specialty Funds (No-Load)	40 BPS/yr	40 BPS/yr	$
	Average Expense Ratios of No-Load Funds	25 BPS/yr	25 BPS/yr	$
"Hidden" Embedded Investment Expenses
	12-B1 Fees	$0	$0	$
	Fund Turnover Charges	$0	$0	$
	Rebalancing Fees	$0	$0	$
	Sales Loads and Commissions	$0	$0	$
	Soft Dollars	$0	$0	$
	Sub-Transfer Agent (Sub-TA) Fee	$0	$0	$
	Transaction Fees	$0	$0	$
	Wrap Fees	$0	$0	$
Additional Expenses
	Annuity Termination Charges	$0	$0	$

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[topic 6]

401k Easy Online comes with a 60-day money-back guarantee on everything but the $995 one-time plan and software customization fee. Because this setup fee is non-refundable, we created a fully functioning demo version of our 401k system for people to try out before they order their actual 401k Easy Online plan.

-- The online real-time demo is the "real" 401k Easy Online, only it has been customized to service a fictitious company's plan. Nearly every 401k administration feature is activated, and you'll get a feel for it if this self-service 401k is the right approach for your company.

Our goal at 401k Easy Online is to ensure that all our clients and their employees have 401k plans they feel good about. If your company purchases 401k Easy Online and then down the road decides the self-service approach is on the right approach for you, give us a call: We can convert your 401k Easy Online plan into a traditional, full-service plan at any time. With 401k Easy Online, you're never locked into anything.

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[topic 7]

Under federal regulations, the $995 one-time set-up fee your company pays for its 401k Easy Online may be refunded in the form of a federal tax credit. New 401k Easy Online plans qualify to receive this federally-mandated dollar-for-dollar refund, but there are some restrictions. If you are interested in receiving this tax credit, please consult your tax advisor.

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[topic 8]

401k Easy Online includes an easy-to-read yet comprehensive 401k Easy Management Guide that tells you how to run your company's plan.

-- The 401k Easy Management Guide helps you get your plan up and running almost as soon as you receive your pass-code information for your new plan (you just need to input — or import — some employee data).

-- The accompanying 401k Easy Management CD-ROM contains background detail and instructions on transactions not common to typical monthly 401k administration.

-- If you ever have any questions, we're here to help! Our tech support phone number is listed at the front of your 401k Easy Management Guide, or you can e-mail us at suppport@401k-easy-online.com.

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[topic 9]

401k Easy Online can accommodate new or already existing 401k plans of any size. Most plan conversions to 401k Easy Online are done for only $500

-- Visit our Converting Existing Plans page for more information.

-- See our 401k Conversion Plan Order Form for a listing of plan customization options available with 401k Easy Online. (If you have specific questions about converting your existing 401k plan for use with 401k Easy Online, submitting an Order Form and with "Unsure. Please contact..." buttons clicked, where applicable, is the most expedient way for us to serve you, even if all you want at the moment is answers to conversion-related questions. Submitting an Order Form IN NO WAY obligates you to actually placing an order, and no money changes hands; the Order Forms simply gather the data we need to accurately answer your 401k-related questions.

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[topic 10]

401k Easy Online includes free help with your 401k-related federal reporting.

-- Our 401k FedForms website shows you annotated versions of the relevant year's 401k-related federal reporting forms and schedules (Form 1099-R, the 5500 series, etc.) and tells you which are relevant to your particular 401k plan, when each is due to the IRS, plus additional information.

-- 401k FedForms contains both popup instructions and printable annotations that tell you where within your 401k software to locate needed information.

-- 401k FedForms even includes ready-to-complete Summary Annual Reports that take just moments to complete!

-- 401k FedForms is a free service for our 401k clients and is relevant in conjunction with their 401k plan administration software.

-- Click here to preview the 401k FedForms website (www.401kfedforms.com).

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[topic 11]

401k Easy Online plans are IRS-approved as employer-trusteed, which means you never have to hire — and thus never have to pay — any 401k trustees.

-- Trustee fees in other 401k plans can add up to hundreds of dollars a year. Just one more area of savings with 401k Easy Online!

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[topic 12]

The US Labor Department is currently auditing 401k plans of all sizes because of a trend that may violate current pension laws. Many companies, especially smaller businesses, are shifting plan administrative expenses to plan participants, knowingly or unknowingly. This shift of plan expenses come in the form of "hidden fees" that are routinely deducted from each participants' retirement savings by some plan providers and mutual funds. Because of lax reporting requirements, no one really knows how much money changes hands behind the scenes, but it is estimated that excessive fees may be as much as $1.5 billion per year, and growing.

In the 401k arena, expense fee disclosure, whether to plan participants or plan sponsors, has been notoriously confusing and unclear. The impact of these confusing hidden fees on plan participants' retirement accounts can be very significant over time. As example, consider a hypothetical 401k investment such as a mutual fund, with deducted expense fees of 1.3 percent versus one with fees of just .3 percent. Applied to an initial 401k investment of $5,000, with regular annual investments of $5,000 returning 10 percent, and compounded over 15 years, the difference between the "low-fee" investment and the "high-fee" investment adds up to $15,398. That's a significant sum deducted from a participant's retirement savings.

Policymakers and plan sponsors seeking to structure well-managed 401ks for their aging workforces are beginning to acknowledge the negative impact hidden fees has on eroding pension accumulations for retirement. What might appear to be a small difference in deducted investment fees can result in substantial differences in eventual retirement benefits.

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[topic 13]

We at Pension Systems Corporation, distributor of 401k Easy and 401k Easy Online, has always worked hard to keep 401(k) plans as affordable as possible for our clients, many being small and very small companies.

Our policy is not to accept any rebates or revenue sharing of fees deducted from our clients' plan assets unless those fees can be returned to the plan, or used by Pension Systems Corporation to offset plan expenses. Entities that provide and support 401(k) plan investments, include mutual funds managers, fund distributors, asset custodians, asset trustees, investment brokers and advisors, and plan administrators and record-keepers. These entities typically earn at least a portion of their compensation from asset-based fees deducted from plan assets.

401k Easy Online is an exception to the norm in that we do not earn any compensation, either directly or indirectly, from our clients 401(k) plan assets. If rebates are offered, we instead have the rebates returned to the client or directly applied to reducing our clients' costs. Our published prices, available online for all to see, are the only net compensation we collect.

Asset-based fees are an unavoidable fact of life if your company is using mutual funds or self-directed brokerage accounts for the 401(k). The cost of these asset-based fees must be included when determining the true, overall cost of a company's 401(k), By applying these fees to keep overall costs down, Pension Systems Corporation is doing its part to keep 401(k) plans as affordable as possible.

For more information on asset-based fees we recommend reading "Revenue Sharing in the 401K) Marketplace--Whose Money Is It?" by The McHenry Consulting Group http://www.mchenryconsulting.com/ and Study of 401(k) Plan Fees and Expenses by the US Department of Pension Welfare and Benefits.

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[topic 14]

All 401k Easy Online prices include taxes, shipping and handling. When we say "everything is included," we mean everything!

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