Q: Erick, are you aware of any current trends regarding plan fees for small plans versus larger plans?
A: The recently released 25th edition of the 401k Averages Book confirms a continuation of a long-running industry trend: both investment and recordkeeping fees are steadily declining, helping drive lower total plan costs for employers and participants. Average investment-related fees decreased across all plan sizes, with reductions ranging from 0.02% to 0.12%. Many plan scenarios also saw reductions in recordkeeping fees, in some cases by as much as 0.03%, reflecting ongoing pricing competition and transparency demands. Smaller plans still pay significantly more in fees than larger plans. A $5 million plan averages 1.08% in total costs, whereas a $50 million plan averages 0.76%.
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Disclosures, Sources, and Footnotes
For plan sponsor use only, not for use with participants or the general public. This information is not intended as authoritative guidance or tax or legal advice. You should consult with your attorney or tax advisor for guidance on your specific situation.
©2025 Kmotion, Inc. All rights reserved. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.
RP-276-0825 Tracking #781124
