Low Cost 401k Plans for a Secure Retirement

Securing your retirement shouldn't break the bank. With low-cost 401k plans, you can save for your future without sacrificing your current lifestyle.

The average employer matching contribution is 4.5% of an employee's salary, but some companies offer as much as 6% or more. This means that for every dollar you contribute, your employer adds a matching amount to your account.

You can start saving for retirement with as little as $100 per month, and some plans even offer automatic enrollment options to make it easier to get started.

Consider reading: Roth 401k Matching

If you're concerned about high 401(k) fees, you're not alone. 75% of small business plans pay hidden fees, but there's hope for a better option.

Our small business fee study can give you some perspective on your current fees. We design plans with transparent, itemized fees and low-cost investment options, aiming for a materially lower all-in cost for your company and employees.

You can expect to see transparent, itemized pricing, all-in costs shown before you decide, and plain language invoices and disclosures.

If you're looking for a similar plan to a 401(k), consider a SEP plan. It's funded with pre-tax contributions, and investments grow tax-deferred.

Here are some key facts to know about SEP plans:

A SEP plan can be a great option for self-employed individuals, allowing them to contribute thousands of dollars each year to a tax-deferred account.

Set up your 401(k) plan in just a few minutes to start building your retirement.

ShareBuilder 401k plan expenses can be significantly lower than the industry average, ranging from 23% to 68% less, depending on the plan size and number of participants.

The cost savings come from lower administration, recordkeeping, tax filing, and investment costs, which are passed on to every participant.

ShareBuilder 401K pricing is based on standard rates for their typical Safe Harbor 401(k) plan design, which doesn't include unique transactions like loans or distributions.

Forbes and CNN have rated ShareBuilder 401(k) as a top provider, with Forbes.com and CNN Underscored Money editorial teams recognizing their excellence in 2024.

Nerd Wallet also voted ShareBuilder 401(k) as a top provider in 2022, highlighting their commitment to low-cost 401(k) plans.

Take a look at this: 401k Top Heavy Test Rules

Our goal is a materially lower all-in cost for your company and your employees. We design plans with transparent, itemized fees and low-cost investment options.

You can expect to see a significant reduction in costs with our plans. For example, ShareBuilder 401K pricing is based on standard pricing rates for our typical Safe Harbor 401(k) plan design, which can result in costs that are 23% to 68% less than the industry average.

Here's a breakdown of what you can expect:

We don't add our own fees on top of the investment costs incurred by your plan, so you can pursue your strategy without worrying about excessive fees.

Low cost 401k plans offer a range of investment options to suit different needs and risk tolerances.

At the foundation of our investment strategy are low cost index funds, which provide broad diversification and often outperform actively managed funds over the long term.

Intriguing read: Low Cost Index Funds Voo

Model portfolios with periodic rebalancing are also available, allowing you to maintain a consistent investment mix and avoid emotional decision-making.

If you're an experienced saver, you can opt for a self-directed window to take control of your investments and make informed decisions.

Here are some key features of our investment options:

Building a solid investment foundation is key to long-term financial success. Low cost index funds are an excellent starting point, as they offer broad diversification and tend to be less expensive than actively managed funds.

These funds track a specific market index, such as the S&P 500, and aim to replicate its performance. By investing in a low cost index fund, you can gain exposure to a wide range of assets with minimal fees.

Model portfolios with periodic rebalancing can also help you stay on track. This involves regularly reviewing your investment mix and making adjustments as needed to maintain your target asset allocation.

Explore further: 401k S and P Index Only Startegy

Optional self-directed windows for experienced savers can be a great way to take control of your investments. However, it's essential to have a solid understanding of investing and risk management before venturing into self-directed investing.

Here are some key benefits of our investment approach:

Dollar cost averaging is a strategy that can help you take advantage of market volatility.

Rather than being scared by market fluctuations, you can continue investing in the market with this strategy.

It's a simple concept: by investing a fixed amount of money at regular intervals, you'll buy more shares when prices are low and fewer shares when prices are high.

Market volatility can be intimidating, but it can also be an opportunity to invest with lower costs.

Broaden your view: 401k Asset Allocation by Age

If you can't find a low-cost 401k plan that fits your needs, consider alternative options like a solo 401k or a SEP-IRA, both of which can offer more flexibility and lower fees than traditional 401k plans.

SEP-IRAs have higher contribution limits than traditional IRAs, allowing you to save up to $57,000 per year, as mentioned in the "Contribution Limits" section.

The solo 401k plan is a great option for self-employed individuals or small business owners, offering higher contribution limits and more investment options than a traditional IRA.

It's worth noting that solo 401k plans have no required minimum distributions, which means you can keep your savings growing tax-free for as long as you want, as explained in the "Tax Benefits" section.

With a solo 401k plan, you can also borrow up to 50% of your account balance, up to a maximum of $50,000, as mentioned in the "Loan Options" section.

This can be a lifesaver in case of an emergency or unexpected expense, giving you peace of mind and financial security.

A fresh viewpoint: 401k Balance at 50

Our low cost 401k plans are built for real people, not just corporate giants. This means you get personalized financial planning tools to help you achieve your goals.

CFP sessions are available at onboarding and open enrollment to ensure you're set up for success. You'll also receive clear allocation and savings targets to guide your investments.

A written action list in plain language helps you stay on track, breaking down complex financial decisions into manageable steps.

Employers have several low-cost 401k plan options to consider. These options include adopting a 3(21) fiduciary plan, which can save thousands of dollars in annual fees.

Employers can also consider a 3(38) investment manager plan, which can provide even more cost savings. This type of plan is often used by small to medium-sized businesses.

A 401k plan with a bundled provider can be another low-cost option for employers. These plans typically offer a one-stop-shop for all 401k needs, including administration, record-keeping, and investment management.

Employers who choose a bundled provider can expect to save around 20-30% on annual fees compared to traditional 401k plans. This can add up to significant savings over time.

By choosing a low-cost 401k plan, employers can help their employees save for retirement while also reducing their own administrative burdens.

A fresh viewpoint: 401k save

A new job provides new opportunities for retirement benefits, but don’t forget about any benefits from your previous employer.

If you've changed jobs, you may need to adjust your 401(k) plan to ensure you're getting the most out of your retirement savings.

Set up your new plan by taking just a few minutes to find the 401(k) plan that's right for you.

ShareBuilder 401k plan expenses range from 23% to 68% less than the industry average.

This means you can save more of your hard-earned money and enjoy a lower cost 401(k) plan.

Forbes and CNN have rated ShareBuilder 401K as a top 401(k) provider in 2024, and Nerd Wallet voted them a top 401k provider in 2022.

Cost comparisons are based on plan assets and number of participants, reflecting core ongoing 401(k) plan expenses that a company and/or its employees can expect to incur as a percentage of assets.

This includes administration, recordkeeping, tax filing prep documents, plan testing, fund expense ratios, and other investment costs passed on to every participant to service the plan.

A fresh viewpoint: Procter and Gamble 401k Provider