401(k) Buyer Guide

Know What to Ask Before You Sign Anything.

Many franchise operators don't know what their 401(k) provider should be answering until it's too late. This guide covers the four dimensions that actually separate good plans from costly ones — and gives you every question to ask before you commit.

The Short Version

Quadrant 1 — Responsibility & Compliance: who is the recordkeeper, TPA, 3(16) administrator, and investment fiduciary — and what exactly do they cover?
Quadrant 2 — Technical Aspects: payroll integration, compliance monitoring, automatic rebalancing, and fiduciary documentation.
Quadrant 3 — Setup & Costs: the full fee picture — setup, base, per-participant, AUM, and transaction fees that providers often bury.
Quadrant 4 — Perks & Extras: employee wellness tools, mobile access, live support, and the extras that drive actual participation.
Download the full guide — a printable worksheet you can take into any provider conversation.

01 Quadrant 1

Responsibility & Compliance

Who is the recordkeeper — and are they also the TPA and custodian, or are those separate vendors?
Is a 3(16) plan administrator included? A true 3(16) takes on day-to-day administrative responsibility so your HR team doesn't carry it.
Is a 3(38) investment fiduciary included? A 3(38) has full discretion to select, monitor, and replace investments — that responsibility, and the liability attaching to it, shifts to the 3(38), though the plan sponsor retains the duty to select and monitor the appointed fiduciary prudently.
Is compliance monitoring continuous or periodic? Continuous monitoring catches issues before they become violations; periodic reviews often catch them after.
Who signs the 5500? Is it included, or charged separately?
Is the fidelity bond included or does the plan sponsor source it separately?
Are employee notifications handled automatically — eligibility, enrollment, annual notices — or does HR manage them?

02 Quadrant 2

Technical Aspects

Which payroll providers does it integrate with — and is integration included or charged separately?
Is automatic rebalancing included? Many providers charge for this or don't offer it at all.
How is nondiscrimination testing handled — ADP, ACP, top-heavy? Is it included and automated, or billed separately?
Is there a written investment policy statement? A documented investment process is essential for fiduciary defense.
Can the plan handle controlled groups — multiple EINs under common ownership — without requiring a separate system?
What is same-day setup? Plan document, account access, and employee enrollment should all be available on day one.
How are plan document amendments handled — included, or charged per amendment?

03 Quadrant 3

Setup & Costs

Setup fee: flat charge to establish the plan. Ask if it is waived for group or Syndicate arrangements.
Base monthly fee: the recurring administrative fee, separate from per-participant and AUM charges.
Per-participant fee: typically $2–$7/month. Ask whether discounts apply at 50+ employees and how the count is defined.
AUM fee: the asset-based charge. Industry range is 0.13%–0.15%; anything above warrants explanation.
Transaction fees charged to participants: loan origination, distributions, QDRO, stop payment, and wire fees should all be zero. Ask specifically — these are where bundled providers often hide costs.
Profit-sharing calculations: included or charged separately? Our range is $0–$199 depending on complexity.
Get the 408(b)(2) fee disclosure from your current provider — it itemizes every dollar of direct and indirect compensation they receive.

04 Quadrant 4

Perks & Extras

Mobile access for participants: account management, deferral changes, and loan requests from phone, tablet, or computer.
Onboarding speed: enrollment should take five minutes or less. One-click opt-out for auto-enrollment plans.
Portfolio builder: guided investment setup based on time horizon and risk tolerance — no investment experience required.
Franchise401 Financial Wellness Tools: included at no extra charge — budgeting, debt, emergency fund, and retirement planning tools for all employees.
Live human support: real people by phone and email for both participants and plan sponsors — not a chatbot.
Dedicated relationship manager: a single named contact for the plan sponsor, not a rotating call center.
IRS Form 8881 completion: does the provider complete the SECURE 2.0 credit form on your behalf — or do you track it yourself?
Profit sharing & cash balance modeling: does the provider model what a coordinated Profit Sharing and Cash Balance stack could shelter for the owner and key employees — or does the relationship stop at a basic 401(k)?

Free Download

Take the full worksheet into any provider conversation.

The downloadable Buyer Guide is a printable, fill-in worksheet — all four quadrants, formatted for side-by-side provider comparisons. Bring it to a provider meeting, send it to a vendor, or use it to audit your current plan.

Download the Buyer Guide Request a Benchmark Instead

Document	What it tells you
408(b)(2) Fee DisclosureService provider disclosure	Your plan sponsor is legally entitled to this from your current provider. It itemizes every dollar of direct and indirect compensation the provider receives — every fee, every revenue-sharing arrangement. Comparing this apples-to-apples with competing proposals is the fastest way to find hidden costs.
404(a)(5) Participant Fee DisclosureAnnual participant notice	The annual document your plan sends (or should send) to participants, outlining plan fees and investment information. Reviewing it reveals how transparent your current plan actually is with your employees — and whether the investment expenses shown are reasonable.
TPA Annual InvoiceThird-party administrator billing	Itemized billing from your current TPA covering all fees for plan administration, compliance testing, government filings, and ancillary services. Useful for identifying duplicated charges, separately billed items that should be included, and unbundled costs that add up quietly.

What should I look for when evaluating a 401(k) provider?

Evaluate providers across four dimensions: who holds fiduciary responsibility (recordkeeper, TPA, 3(16), 3(38)); technical capabilities like payroll integration and compliance monitoring; the full cost structure including hidden transaction fees; and extras like participant wellness tools, mobile access, and dedicated support.

What is the difference between a 3(16) and 3(38) fiduciary?

A 3(16) administrator handles the day-to-day administrative responsibilities of the plan, reducing the burden on the plan sponsor. A 3(38) investment fiduciary has full discretionary authority to select, monitor, and replace plan investments; that responsibility, and the liability attaching to it, shifts from the plan sponsor to the 3(38). It does not eliminate the sponsor's fiduciary status — the sponsor retains the duty to select and monitor the appointed fiduciary prudently. Both are included with franchise401kplans.com.

What fees should I ask about when comparing providers?

Ask about setup fees, base monthly fees, per-participant fees, and AUM fees. Also ask specifically about transaction fees charged to participants — loan origination, distributions, QDRO, stop payment, and wire fees. Many bundled providers charge these separately; with us they are all zero. See pricing for full detail.

What is a 408(b)(2) fee disclosure?

A 408(b)(2) fee disclosure is a document your current 401(k) provider is required by law to give you as plan sponsor. It itemizes all direct and indirect compensation the provider receives and identifies each service being rendered. Reviewing it is essential for fee benchmarking — and many plan sponsors have never asked for it.

Is the fidelity bond included or extra?

With franchise401kplans.com, the fidelity bond is included at no extra charge. With bundled providers it is often charged separately or left to the plan sponsor to source independently.

How do I know if my current provider is giving me a good deal?

Request a complimentary plan benchmark report. We review your current plan's cost structure, investment lineup, and fiduciary provisions against the market and show you exactly what you have, what you are paying, and whether it is the right fit — at no cost and no obligation.

Should a 401(k) provider model profit sharing and cash balance options for me?

Yes — and it's one of the biggest differences between a bundled provider and a true advisor. Many bundled providers stop at a basic 401(k) and rarely model what a coordinated Profit Sharing and Cash Balance stack could shelter for the owner and key employees. Ask any provider directly whether this modeling is part of what they do.

Already Have a Plan?

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We will compare your current costs, investment lineup, and fiduciary provisions against the market — at no cost and no obligation. You will see exactly what you have, what you are paying, and whether it is the right fit. Or review the proposal review service if you have competing bids.

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Your Franchise. Your People. Your Plan.

Isn't It Time Your Franchise Had a 401(k) Built for It?

Franchise ownership creates retirement plan complexity that generic providers were not designed for. A complimentary benchmark review takes 30 minutes and shows you how your current plan's costs, structure, and fiduciary process compare to the market.

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Capital Investment Company of Virginia and Franchise 401k Plans are trade names of Retirement Fiduciaries of VA, LLC. Investment advisory services are offered by J. Andy Ingram, an investment adviser representative of Sollinda Capital Management, a Registered Investment Adviser. An additional advisory fee applies for investment advisory services. This fee is separate from and in addition to the plan administration, recordkeeping, and AUM fees described on this site, and varies based on total plan assets and whether the engagement involves a new plan or a plan conversion. This website is for informational and educational purposes only and does not constitute an offer or solicitation to buy or sell any securities or investment products. Past performance is not indicative of future results. All plan design, consulting, and fiduciary services are subject to a formal written engagement agreement. Nothing on this site constitutes tax or legal advice. Please consult your tax professional or attorney regarding specific tax questions, including eligibility for federal tax credits under SECURE 2.0. Retirement plan consulting services are provided in connection with qualified plan platforms governed by applicable ERISA regulations.