Defined Contribution - Plan Administration Terms

Fee for providing tracking of plan participants’ share ownership.

Costs associated with ongoing education of participants on how the plan works and how to allocate contributions among plan options.

Fees paid to the fiduciary responsible for holding plan assets.

Administrative fees charged to the plan as a percent of plan assets. For transparency purposes, when entering fees in the DC Plans dialogue box, one should only associate fees not covered with the more specific fee categories to the ‘Asset Based Fee’ category.

Costs associated with preparing and filing Form 5500, which all qualified retirement plans (excluding SEPs and SIMPLE IRAs) must file annually with the IRS.

Costs associated with completing the numerical measurements required for tax qualified retirement plans (also known as ‘nondiscrimination testing’) and plan audits (all ERISA-covered plans with more than 100 participants require a third party audit).

Costs associated with modifying a pre-existing Investment Policy Statement.

Costs associated with loan origination, loan processing, and monitoring outstanding loans and repayment schedules.

Costs associated with initial participant education, initial and ongoing enrollments, and converting from one set of plan providers to another.

Costs associated with terminating one or more investment offerings within a plan.