Data shows that 401(k) fees are declining across the board – but wide ranges persist.
The average total plan cost for a small retirement plan (100 participants/$5 million in assets) declined from 1.28% to 1.25% over the past year, while the average total plan cost for a large retirement plan (1,000 participants/$50 million in assets) declined from 0.97% to 0.96%, according to the newly released 17th edition of the 401k Averages Book.
Not surprisingly, smaller plans are paying more, at least as a percentage of assets. The report notes that the average cost for a micro plan (10 participants and $500,000 in assets) is 1.85%, while the small plan and large plan averages are 1.25% and 0.96%, respectively.
The book shows the range between the high and low total plan costs on a small plan is 0.46% to 1.69%, while a large plan is 0.28% to 1.21%.
The 17th edition of the 401k Averages Book is available for $95 and can be purchased by calling (888) 401-3089 or online at http://www.401ksource.com.