Automatic Pricing Discounts
Great pricing* that gets even better as your plan
savings grow.
Whether you are starting your first 401(k) plan for your business
or have an established plan in place, ShareBuilder 401k is
dedicated to offering your company exceptional service at a great
price.* And as your plan monies grow and surpass an
asset tier,
we automatically adjust your pricing lower to
help you get the most out of your program. Not only does this help
ensure you have a low-cost plan, but it also saves you money,
hassle and energy of regularly negotiating your plan expenses.
Automatic Pricing Discount Example
| Plan assets for an 11-25 participant plan | Investment management | Monthly administration |
|---|---|---|
| $0-$499,999 | 0.75% | $145 |
| $500,000-$1,999,999 | 0.65% | $100 |
| $2,000,000-$4,999,999 | 0.55% | $45 |
| $5,000,000-$7,999,999 | 0.45% | Waived |
| $8,000,000-$11,999,999 | 0.35% | Waived |
This standard pricing is based on a Safe Harbor plan design. Investment management pricing is part of investment expenses paid by participating employees, and monthly administration is paid by the employer and is typically tax deductible for the business.
How Automatic Pricing Discounts Work
Your ShareBuilder 401k provides clearly defined pricing that is standardized by amount of money in your plan (assets) and number of plan participants. As your company's total plan assets exceed a pricing tier for a calendar quarter (based on an average of the daily balance), we automatically lower your administration and investment management pricing for the next quarter and ongoing. The reverse can also be true. If for some reason markets or other events drop your average asset balance for your company plan below your current level, your administration price and investment price are adjusted up for the next quarter. If your number of participants decrease below a tier, this may lower your pricing. If they increase beyond a tier, this may increase your pricing. All pricing is on a go-forward basis and is not retroactive.
Note that setup charges may apply and only apply on the initial purchase and then never again. In the event you purchase during a promotional period, you may not receive the full benefit of the promotion if the value would result in credit back to your company (doesn't go below $0).
* ShareBuilder 401k plan expenses range from 23% to 68% less than the industry average at various data points from a $50K plan with 6 participants to a $100M plan with 2,000 participants based on 401k Averages Book 2023 Data and Custom Benchmarking report prepared for ShareBuilder Advisors. Cost comparisons are based on plan assets and number of participants and reflect core on-going 401(k) plan expenses that a company and/or its employees can expect to incur as a percentage of assets with most any 401(k) plan. This includes administration, recordkeeping, tax filing prep documents, plan testing, fund expense ratios, and other investment costs passed on to every participant to service the plan. It does not include unique employee-initiated transactions such as loans, distributions or employer transactions such as plan amendments. ShareBuilder 401k pricing is based off standard pricing rates for our typical Safe Harbor 401(k) plan design. This claim is not applicable to Solo 401(k) plans.