How Much Does it Cost to Start Up a Retirement Plan?

We get asked a lot of questions here about retirement plans – but when we went looking for the average cost of starting up a retirement plan last week, we got a range of answers.  Granted, we understand that a lot of variables go into that pricing – plan design, asset mix, employee base, contribution flows…
 
But if you were at a small business gathering, and an employer – discovering your field of employment – wanted to get a sense of how much it would cost him/her to set one up – what would you say?

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1. In your experience, how much (on average) out-of-pocket would it cost a 10 person firm to set up a defined contribution plan, such as a 401(k)?

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2. In your experience, how much out-of-pocket (on average) would it cost a 25-person firm to set up a defined contribution plan, such as a 401(k)?

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3. In your experience, how much out-of-pocket (on average) would it cost a 50-person firm to set up a defined contribution plan, such as a 401(k)?

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4. In your experience, how much out-of-pocket (on average) would it cost a 100-person firm to set up a defined contribution plan, such as a 401(k)?

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5. Switching gears - realizing that these are sometimes quoted in basis points, for that 10-person company, what would you estimate would be the first-year out-of-pocket costs to the employer of operating that plan?

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6. Again, realizing that these are sometimes quoted in basis points, for that hypothetical 25-person company, what would you estimate would be the first-year out-of-pocket costs to the employer of operating that plan?

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7. (once) Again, realizing that these are sometimes quoted in basis points, for that hypothetical 50-person company, what would you estimate would be the first-year out-of-pocket costs to the employer of operating that plan?

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8. (Still yet once) Again, realizing that these are sometimes quoted in basis points, for that hypothetical 100-person company, what would you estimate would be the first-year out-of-pocket costs to the employer of operating that plan?

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9. Having provided a rough guess at out-of-pocket cost(s) to this hypothetical employer, what specific questions would you want to have answered to provide a more accurate response?

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10. Any other comments about starting up a retirement plan, the cost of starting up a retirement plan, the reasons for not stating up a retirement plan, or life in general?

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11. What is your role working with retirement plans?

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12. What size plans do you PRIMARILY work with?

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13. Suggestions for future survey questions?

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14. All responses are anonymous and confidential, of course - but if you'd like me to know who you are, or allow for a response, you can leave your email below...

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