The 401k Averages Book is one of the great publications in the retirement plan business and I recommend it. I won\u2019t recommend a report they just did because it was stating the obvious.<\/p>\n
According to their report:\u00a0 \u201cAre All $5,000,000 401k Plans Created Equal?\u201d, the size of a 401(k) plan\u2019s average participant account balance will influence the amount of fees they pay.<\/p>\n
The report\u00a0states that there can be a big price difference for a $5 million 401(k) Plan if the plan has 100 participants as opposed to 500 participants.<\/p>\n
According to their report, the total bundled cost for a plan with 100 participants and an average account balance of $50,000 is 1.25 percent as compared to 1.56 percent for a 500-participant plan with an average account balance of $10,000.<\/p>\n
Of course it is. Most third party administrators I know charge a per head price in addition to other fees, so a plan with more participants will usually pay more than one has less even if they have the same amount of assets.<\/p>\n
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