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

Here are the facts:

According to a recent study by the ICI (Investment Company Institute) and Deloitte titled, "Defined Contribution / 401(k) Fee Study". the average 401k plan has hidden fees of 0.72% per year. That may not seem like much, but it costs the average participant about $11,000 in hidden fees for the lifetime of his or her 401k. These fees are extracted directly from the 401k participant's account. In their study, ICI and Deloitte call these hidden fees "all-in" fees. The average hidden "all-in" fee of 0.72% equates to $350 per year, extracted from participants' accounts.

For small 401k plans that cover less than 20 employees and less than $1 million in total assets, the hidden "all-in" fee situation is much worse. For small 401k plan participants, hidden "all-in" fees can jump from 0.79% to a whopping 1.89%, or up to $920 per plan participant per year! For small plan participants, this can mean paying an astounding $28,000 in hidden fees for the lifetime of his or her 401k. See pages 6, 16, 19 and 20 of ICI/ Deloitte report by clicking the report cover. If you are selecting a 401k for your employees, did you know they could be unknowingly losing $350 to $920 a year in hidden fees?

In most 401k plans, large and small, the employer pays the 401k plan's annual record keeping fees. These fees vary; below is a representative sample of annual record keeping fees:

401k fees for a company with 15 employees & $1 million in assets...

401k Easy Online

(www.401k-easy-online.com)

$995

The Online 401k

(www.theonline401k.com)

$1,100

Wellington 401k

(www.wellington401k.com)

$1,350

Employee Fiduciary

(www.employeefiduciary.com)

$1,500

Sharebuilder 401k

(www.sharebuilder401k.com)

$1,800

...and how prices skyrocket when the "all-in" and hidden fees are disclosed...

401k Easy Online

$995 + [No hidden "all-in" fees]

$995 per year complete!

The Online 401k

$1,100 + ["all-in" fee of 0.72% to 1.89%
of $1 million]

$8,300 to $20,000 per year

Wellington 401k

$1,350 + ["all-in" fee of 0.72% to 1.89%
of $1 million]

$8,550 to $20,250 per year

Employee Fiduciary

$1,500 + ["all-in" fee of 0.72% to 1.89%
of $1 million]

$8,700 to $20,400 per year

Sharebuilder 401k

$1,800 + ["all-in" fee of 0.72% to 1.89%
of $1 million]

$9,000 to $20,700 per year

So it's not rocket science to understand why many plan providers in the 401k industry are blowing smoke to make any discussion about hidden or "all in" 401k fees confusing and bewildering. There is a great deal of money at stake, and all this smoke clouds the fact that many small employers are unknowingly offering their employees 401k plans laden with hidden fees.

Hidden and "all-in" 401k fees are getting noticed by the news media and the legal profession via class-action law suits, and some 401k plan providers that made fortunes mining hidden fees are now scrambling to cover their tracks. They are generating the kind of PR confusion many of us remember from years past, when major tobacco companies tried to explain to Americans that smoking was not hazardous their health. Many in the 401k industry are launching the same kind of PR assault, confusing and clouding the issue, but what is really at stake is the end of their 401k hidden fee gravy train, pure and simple.

Expense Category	Expense Item	PC-Based 401kEasy	Web-Based 401kEasy Online	Brand X
One-Time Set-Up Fee
	New Plan Set-Up (one-time)	$495	$695	$
	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)	$395	$495	$
	2-4 eligible employees	$495	$695	$
	5-10 eligible employees	$595	$895	$
	11-15 eligible employees	$695	$995	$
	16-20 eligible employees	$895	$1,195	$
	21-25 eligible employees	$1,045	$1,395	$
	26-30 eligible employees	$1,195	$1,595	$
	31-35 eligible employees	$1,345	$1,795	$
	36-40 eligible employees	$1,575	$2,095	$
	41-45 eligible employees	$1,725	$2,295	$
	46-50 eligible employees	$1,875	$2,495	$
	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	$0	$35	$
	Loan Origination Fee	$0	$35	$
	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	$