New 401k Averages Book Continues to Show Larger Plans Pay Lower Fees

The 18th Edition 401k Averages Book shows 401(k) total plan costs declined for most size plans. Scenarios with 200 or more participants saw a decrease in total plan costs from last year.

The latest book was expanded to include 401(k) fee information on plans with large participant account balances. “With studies showing participant account balances exceeding six figures, we thought it was a good time to add a new section to the 401k Averages Book,” says Joseph W. Valletta, co-publisher of the 401k Averages Book.

The latest book finds investment fees continued to decline. Scenarios with 200 or more participants saw a year over year decrease in total investment costs of between 0.01% and 0.03%.

There is a wide range between high and low-cost providers. The range of cost is greatest within the small plan market. The range of a plan with $1,000,000 in assets and 100 participants ($10,000 average account balance) is 0.72% to 2.80%. In addition, smaller plans continue to pay higher fees than large plans. For example, the average fee for a plan with $1,000,000 in assets and 100 participants ($10,000 average account balance) is 1.89%, while for a plan with $10,000,000 in assets and 1,000 participants ($10,000 average account balance) it is 1.39%.

Prior editions showed data for plans with $10,000 and $50,000 average account balances. With the addition of the $100,000 account balance information, financial professionals can choose from three sections of benchmarks. Each section is made up of eight different plan size scenarios.

“It is important to use a benchmark which reflects the characteristics of your plan,” says Valletta.

The 401k Averages Book 18th Edition is available for $95 and can be purchased by calling (888) 401-3089 or at www.401ksource.com.