Low-Cost 401(k) Plans for Small Businesses

We manage the daily operations of your 401(k) plan, which are included with our annual administration fee, through our plan recordkeeping services. This includes:

• • Track your employees' contributions and account balances
  • Updating share prices and individual account balances on a daily basis
  • Process transactions like contributions, distributions, and fund transfers
  • Provide employees with quarterly statements

Most new 401(k) plans are set up in 30-60 days. The timeline includes:

1. 1. Plan Design Consultation – Choose features like employer matching, eligibility rules, and investment lineup.
   2. Document Preparation & Approval – We prepare your official plan documents for IRS compliance.
   3. Employee Enrollment & Contributions – Employees are added, contributions are set, and payroll integration is configured.
   4. Plan Activation – The plan goes live, and contributions start.

If you’re switching from another provider, we’ll help with the transfer process to ensure a smooth transition.

We offer an open-architecture investment platform, meaning you can select from 30,000+ mutual fund share classes across 377 fund families, including:

• • Low-cost index funds (e.g., Vanguard, Fidelity, Schwab, BlackRock).
  • Actively managed funds for more strategic investing.
  • Target-date funds for hands-off investing tailored to retirement goals.
  • Self-directed brokerage (Schwab PCRA) for participants who want even more investment flexibility.

Unlike many providers, we do not limit you to pre-selected portfolios and take no revenue-sharing fees from fund providers.

We provide flexible investment advice options to help employees make informed retirement decisions. At Employee Fiduciary, your plan can offer employees up to three options:

1. 1. Target-Date Funds – A simple, hands-off investment option that automatically adjusts asset allocation over time. Employees select a fund closest to their retirement year, and it gradually shifts to a more conservative mix as they approach retirement.
   2. Plan-Sponsored Advice – You can hire a financial advisor to manage the plan’s investment lineup and provide investment education or advice to employees. This option helps ensure that employees receive professional guidance tailored to their needs.
   3. Independent Financial Planning – Employees can work with a financial advisor of their choice for personalized investment guidance. Unlike some providers that restrict advisory services, we allow full flexibility for employees to seek professional advice from an independent advisor.

With Employee Fiduciary, employees are not locked into proprietary investment advice platforms or robo-advisors. Instead, they can choose the level of guidance that fits their needs, whether it’s an easy-to-use target-date fund, plan-sponsored advice, or independent financial planning.

Yes! For SDBAs, we offer Personal Choice Retirement Accounts® (PCRA) from Charles Schwab. This option gives participants even more flexibility by allowing them to invest in a wider range of stocks, ETFs, and mutual funds beyond the plan’s core investment lineup.

Key Features of the Schwab PCRA:

• • Access to thousands of additional investment options beyond standard 401(k) funds.
  • Control over individual investment choices, including stocks, bonds, ETFs, and mutual funds.
  • Managed through Schwab’s online trading platform, offering real-time account access and trade execution.

Cost of the Schwab PCRA:

• • $100 per account per year (plus applicable brokerage/trading fees).

The Schwab PCRA is ideal for experienced investors who want greater control over their 401(k) investments. However, it may not be suitable for participants who prefer a simpler investment approach using target-date funds or the plan’s core fund lineup.

Yes! You can choose Exchange-Traded Funds (ETFs) for your plan’s investment lineup. ETFs are a popular investment option because they offer:

• • Low-cost diversification – Many ETFs track broad market indexes with lower expense ratios than actively managed mutual funds.
  • Tax efficiency – ETFs are structured to minimize capital gains distributions, which can help with tax-efficient investing.
    
    

ETF Trading Fee:

A $0.01 per share trading fee is charged by Matrix Trust Company for ETF transactions.

Employee Fiduciary offers a low-cost, transparent pricing model designed to help businesses and employees save more for retirement. Our pricing structure is simple to make our savings clear.

Most 401(k) providers charge fees in one of two ways:

• Asset-Based Fees – Based on a percentage of plan assets, which means fees increase as your plan balance grows.
• Flat Fees – A predictable cost structure that doesn’t rise with your savings.

To see how our fees compare to 40+ leading 401(k) providers, check out our 401(k) Fee Comparison Page.

To see how much a $500,000 plan with 30 participants could save by choosing Employee Fiduciary over other leading small business 401(k) providers, check out the table below:

The Employee Fiduciary Advantage

• • Lower Total Costs – our total cost is much lower than providers that charge higher asset-based fees
  • No Hidden Fees – We never charge revenue-sharing fees, insurance company wrap fees, or hidden transaction fees.
  • Flat and Affordable Pricing – Our costs stay low and transparent, ensuring that more of your money stays invested for retirement.

As your plan grows, the savings with Employee Fiduciary increase compared to asset-based fee providers. Our low flat fee + small custody fee structure ensures businesses and employees keep more of their hard-earned retirement savings.

At Employee Fiduciary, we believe every business deserves an affordable, high-quality 401(k) plan. We keep our fees lower than most providers by operating efficiently and eliminating unnecessary costs—without cutting corners on service, compliance, or investment flexibility.

Here’s How We Keep Costs Down Without Sacrificing Quality:

• • Laser Focus on What Matters – We prioritize personal care, technical expertise, plan design, investment flexibility, and convenience—the key elements that make a great 401(k). Unlike some providers, we don’t waste money on fancy, gimmicky features (like glossy benefit statements that no one reads) when those resources can be better spent on keeping fees low and service top-notch.
  • No Outbound Sales – 100% of our sales are inbound, meaning we don’t spend money on expensive advertising campaigns or aggressive sales tactics. Our low client acquisition costs allow us to pass savings directly to our clients.
  • Lean, Efficient Operations – We keep overhead to a minimum by focusing on technology-driven solutions and streamlined processes, instead of maintaining costly office space or bloated management structures.
  • No Outside Investors – Unlike many providers backed by venture capital or private equity, we are 100% employee-owned and fully independent. Without outside investors demanding high returns, we can focus entirely on keeping fees low for our clients.

By prioritizing efficiency, transparency, and client-first service, we deliver big-business 401(k) services at small-business prices—while ensuring every plan gets the expert support it needs.

Yes! Employee Fiduciary offers payroll integration to streamline 401(k) contributions and compliance. We can securely receive employee information, including contributions and census data, through FTP or API at no additional cost.

How Payroll Integration Works:

• • Your payroll provider securely transmits contribution and employee data to Employee Fiduciary.
  • We process the data to ensure accurate and timely 401(k) contributions.
  • This integration reduces manual work and helps keep your plan compliant with IRS and DOL regulations.

Requirements for Payroll Integration:

• • Your payroll provider must be willing to participate in the integration.
  • Some payroll companies may require employer authorization before enabling the connection.

Which Payroll Providers Are Supported?

Employee Fiduciary currently integrates with multiple payroll providers. A list of supported payroll companies can be found here. If your payroll provider is not yet integrated, we can work with them to explore integration options.

This service helps ensure efficient, error-free 401(k) contributions while reducing administrative burdens for employers.

At Employee Fiduciary, we don’t sell cookie-cutter 401(k) plans. Instead, we start every plan setup with a consultation where our experts will...

• • Walk you through the plan design process step-by-step
  • Help you decide if a Safe Harbor 401(k) is right for you
  • Discuss plan features that can save you money, minimize admin work, and help you pass annual compliance tests
  • Design an optional employer contribution scheme, including non-elective, matching, or profit-sharing contributions

Plan transfers typically take 60-90 days, depending on the outgoing provider. The timeline includes:

• • Coordinating with your current provider to move plan assets.

• • Preparing the blackout notice for plan participants.
  • Mapping your existing plan documents to ensure a smooth transition.
  • Helping you choose low-cost investment options for your employees.
  • Reconciling the plan assets transferred from your current provider.
  • Handling the compliance and reporting requirements during the transition.

Employee Fiduciary is 100% employee-owned and fully independent. Unlike many 401(k) providers that are backed by venture capital, private equity, or large financial institutions, we are owned and operated by the people who run the business every day.

Why Does This Matter?

• • No Conflicts of Interest – We are not influenced by outside investors looking to maximize profits at the expense of our clients.
  • Client-First Approach – Our independence allows us to prioritize low fees, transparent pricing, and top-tier service over shareholder returns.
  • No Proprietary Fund Requirements – Unlike some providers that push their own investment products, we offer open-architecture investing, giving clients access to 30,000+ mutual funds, ETFs, and self-directed brokerage accounts.

At Employee Fiduciary, our success is directly tied to our clients' success—not the demands of outside investors. Our commitment to low-cost, high-quality retirement plans is at the core of everything we do.

At Employee Fiduciary, we offer maximum flexibility when it comes to selecting your plan’s investment lineup. You have three options:

1. 1. Hire a Financial Advisor – Work with an independent financial advisor who can help you design a custom investment lineup and manage plan investments. This is a great option if you want personalized investment guidance.
   2. Select Funds Yourself – If you prefer to manage the investment menu on your own, you can choose from 30,000+ mutual fund share classes across 377 fund families, including popular low-cost options like Vanguard, Fidelity, and Schwab index funds.
   3. Use our 3(38) Investment Manager – If you want a professionally managed, low-cost investment lineup, you can choose Frugal Financial as your 3(38) investment fiduciary. This option provides a pre-selected menu of low-cost index funds, reducing your fiduciary responsibility while ensuring employees have access to diversified, cost-efficient investments.

With Employee Fiduciary, you are never locked into proprietary funds or pre-set investment choices. Whether you want full control, professional guidance, or a simple, cost-effective lineup, we support the investment strategy that works best for your business.

Participants can easily select and manage their investments through our secure online portal.

The process is simple:

1. 1. Login to Account – Employees can access their 401(k) account anytime from our secure website.
   2. Explore Investment Options – Participants can view the available investment lineup, which may include low-cost index funds, target-date funds, or a custom selection chosen by the plan sponsor.
   3. Make Investment Elections – Employees can allocate their contributions among the available funds based on their investment strategy.
   4. Update Investments Anytime – Participants can log in to change their investment elections or rebalance their portfolio as needed.

For those who prefer a hands-off approach, we offer target-date funds that automatically adjust over time. Participants who want personalized investment advice can consult a financial advisor of their choice or an advisor hired by the plan sponsor.

Our platform makes it easy for employees to take control of their retirement savings with full online access and flexibility.

Many 401(k) providers advertise low administration fees but make up the difference with hidden fees that can significantly reduce employees' retirement savings over time. These fees are often buried in investment expenses or transaction costs, making them hard to detect. Worse yet, hidden fees are usually based on a percentage of assets. That means their amount increases automatically as your plan assets grow.

Common Hidden 401(k) Fees:

• • Revenue-Sharing Fees – Some providers receive kickbacks from mutual fund companies, increasing fund expenses for participants.
  • Insurance Company Wrap Fees – Some 401(k) providers use group variable annuities, which bundle investment options inside insurance products with high, opaque fees. These “wrap fees” can add 1% or more in extra costs, reducing employee savings.

At Employee Fiduciary, we do not charge hidden fees. Our pricing is flat, fully transparent, and designed to save businesses and employees money. What you see is what you get—a high-quality, low-cost 401(k) with no surprises.

At Employee Fiduciary, our clients have three options to our plan administration fees:

• • Employer-Paid: The business covers all administrative costs.
  • Participant-Paid: Fees are deducted from participant accounts.
  • Split-Paid: Our base fee is paid by the employer, while our asset fee is deducted from accounts.

About 80% of our small business clients cover all their plan’s administrative costs. The reason is simple – the approach is usually a win-win for business owners.

Business owners tend to have the largest account balances in a small business 401(k) plan. When this is true, their accounts pay the lion’s share of administration fees paid from plan assets. By paying these fees from a corporate bank account instead, business owners can take a tax deduction, while keeping the portion that would have been deducted from their account earning compound interest until retirement.

Our pricing is flat-fee and transparent, with no hidden costs.

• • Plan Administration Fee: $1,500 per year (for up to 30 participants).
  • Additional Participants: $30 per person annually after 30 employees.
  • Custodial Fee: 0.08% of assets per year.

There are no revenue-sharing or hidden transaction costs. Unlike providers that charge a high percentage of assets, our fees stay flat as possible to help your savings grow faster.

401(k) fees may seem small at first, but even a fraction of a percent can significantly reduce retirement savings over time. The higher the fees, the more money is taken from your investments—resulting in less growth and a smaller nest egg at retirement.

The Cumulative Effect of Fees

Let’s compare two 401(k) plans with identical contributions and investment returns, but different fee structures:

Result: The high-fee plan loses $127,000 over 30 years—just from fees. That’s a major impact on retirement savings.

Types of Fees That Can Erode Savings

1. 1. Asset-Based Administration Fees – Some providers charge a percentage of total assets instead of a flat fee, meaning fees increase automatically as your savings grow.
   2. Revenue-Sharing Fees – Kickbacks from fund providers inflate investment expenses without plan sponsors realizing it.
   3. Insurance Wrap Fees – Many insurance-based 401(k) plans bundle investment options inside high-cost annuities, reducing returns.
   4. Hidden Transaction Fees – Some providers charge for trades, rollovers, or distributions—costs that add up over time.

How Employee Fiduciary Helps You Save More

At Employee Fiduciary, we believe every dollar in fees is a dollar not growing for retirement. That’s why we offer:

• Flat, transparent pricing – No asset-based administration fees that increase as your savings grow.
• No revenue-sharing or insurance wrap fees – We don’t take kickbacks from fund providers.
• Low-cost investments – Access to 30,000+ mutual fund share classes with ultra-low expense ratios.

Over time, even small fee savings can lead to tens or hundreds of thousands more at retirement. Keeping costs low is one of the best ways to maximize your 401(k) savings—and that’s exactly what we help you do.