The cost of sponsoring a 401(k) plan dropped again in 2015, as more sponsors are paying a fixed-dollar cost for recordkeeping services, according to NEPC's most recent breakdown of defined contribution plan costs.
The median plan fee, or the total cost to provide and administer a plan, was 46 basis points in 2015, meaning plans cost an average of 46 cents for every $100 in a plan, according to the Boston-based consultant to plan sponsors.
That was down from 52 basis points in 2014. In 2006 the average all-in cost was 57 basis points.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
