Can someone show me how to transfer an existing 401k plan with brokerage options. Which company offers this kind of retirement service and what is the possible administration fee for plan of $800,000 and 3 employees. Appreciate any reply.
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401k with brokerage option
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 smauliew |
401k with brokerage option |
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Posts: 1 (06/05/08 20:13:49) |
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ms401 |
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Posts: 27 (06/16/08 05:25:43) Member |
My guess on admin. costs would be $1000 to $1500 annually, maybe more if you are doing some type of cross-testing, maybe less if you are doing safe-harbor
only.
Transferring a plan with a brokerage option should be no different that any other plan transfer. The assets have to be liquidated and moved to the new environment. Most insurance company providers can offer a brokerage window. Question: I assume you are the owner/fiduciary/plan sponsor/trustee -- why do you want a brokerage window? If you have those titles then you are hopefully aware that you need to use Fiduciary Prudence in making an investment lineup available to the participants (means making the best choice for someone else). Do they have the skill to choose their own investment lineup through a brokerage window where the choices may number in the thousands?? Would it not make sense for you to create a sound lineup that is good enough for you and them? Just some thoughts. Too many companies get themselves into trouble with a brokerage window, and giving too much choice to those who may not understand all the variables. |
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smauliew |
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Posts: 2 (06/16/08 16:39:27) |
Thank you for your sound advice. I agree that the fiduciary liability associated with brokerage retirement account is tremendous.
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