Each tier below shows plan administration and recordkeeping costs, priced by your entity structure and participant count. Every tier includes zero participant transaction fees, 3(38) and 3(16) fiduciary oversight, a dedicated Specialist Advisor, and a dedicated relationship manager. Every plan also includes our investment advisory services, with a fee based on plan size.
| Category | Before — The Starting Point | After — What Could Be Built |
|---|---|---|
| Plan Structure | Standard 401(k) with 3% safe harbor match only — no profit sharing, no cash balance plan, no actuarial modeling ever performed | Coordinated 401(k) + Profit Sharing + Cash Balance Plan, designed as a single unit and cross-tested for nondiscrimination across the full workforce |
| Owner's Annual Shelter | $32,500/year — the standard 401(k) deferral plus catch-up, against $850,000 in W-2 compensation | Up to $329,000/year — $80,000 in 401(k)/profit sharing plus $249,000 in cash balance contribution |
| Estimated Annual Tax Savings | Roughly $14,000/year at an assumed combined marginal federal and state rate | Roughly $135,000+/year at the same assumed rate — over ten times the prior shelter |
| Employee Cost | $0 beyond the existing 3% safe harbor match — but no additional retirement benefit being delivered to caregivers either | A modest cross-tested gateway contribution, sized specifically to pass nondiscrimination testing while keeping employer cost efficient |
| 5-Year Shelter Accumulation | Approximately $162,500 over five years at the prior contribution level | Approximately $1,645,000 over five years under the coordinated stack — before investment growth, assuming contributions are maintained |
| Plan Administration | Single TPA relationship, no enrolled actuary, no annual cash balance recalculation | Enrolled actuary engaged for annual cash balance recalculation, coordinated with 401(k)/profit sharing administration under one relationship |
| Funding Deadline | 401(k) deferrals only — no flexibility once the calendar year closed | Profit sharing and cash balance contributions can be funded up to the tax return deadline, including extensions — as late as October of the following year |
| Category | Before — The Starting Point | After — What Could Be Built |
|---|---|---|
| Plan Structure | Three separate bundled plans across two providers — no controlled group coordination, duplicate TPA, recordkeeping, and advisory costs at every entity | Single controlled group 401(k) covering all three entities under one plan document — unified testing, unified compliance, one advisor relationship |
| Total Annual Cost | $247,200 annually across three plans on $9.0 million in combined plan assets — entity rates ranging 2.20%–2.96%, with undisclosed revenue sharing throughout | $85,140 annually on the same $9.0 million in combined assets, about 0.95%, fully transparent, zero revenue sharing |
| Cost Reduction | $247,200 annual plan cost — never benchmarked, never reviewed, never challenged by incumbent advisors | $162,060 in annual savings — a 66% reduction in total plan cost in year one |
| Fiduciary Coverage | Principal owner personally responsible across all three plans — no IPS, no fund review process, no 3(16) or 3(38) in place | 3(16) fiduciary administrator + 3(38) investment manager appointed — administrative and discretionary investment duties shifted away from the owner, who retains the duty to select and monitor them prudently |
| Discrimination Testing | Two plans failed ADP testing — corrective distributions issued to owners and HCEs, retirement savings forcibly reduced | Safe harbor plan design implemented across all entities — ADP/ACP testing eliminated, owners contribute freely at maximum levels |
| Controlled Group | Never identified — all three plans tested independently, coverage and ADP testing invalid for multiple plan years | Controlled group properly identified and documented — combined testing implemented, compliance exposure resolved |
| Participation Rate | 26% average across all three plans — no auto-enrollment, no escalation, no employee education program | Auto-enrollment at 6% + auto-escalation to 10% implemented — participation modeled to reach 74% across all entities within 12 months |
| Plan Filings | Three plan documents, three Form 5500 filings, and three sets of participant notices, split across two providers | One plan document, one Form 5500, and one set of participant notices, with Form 5500 filing and required notices included in the base fee |
