Question: Are you aware of any current trends regarding plan fees for small plans versus larger plans?
Answer: The recently released 25th edition of the 401k Averages Book confirms a continuation of a long-running industry trend: both investment and recordkeeping fees are steadily declining, helping drive lower total plan costs for employers and participants. Average investment-related fees decreased across all plan sizes, with reductions ranging from 0.02% to 0.12%. Many plan scenarios also saw reductions in recordkeeping fees, in some cases by as much as 0.03%, reflecting ongoing pricing competition and transparency demands. Smaller plans still pay significantly more in fees than larger plans. A $5 million plan averages 1.08% in total costs, whereas a $50 million plan averages 0.76%.
