When Free is Expensive

Many 401(k) providers will market their plans as essentially “free” because there are no explicit hard dollar costs for recordkeeping, administrative fees etc…. But we all know, that there is no free lunch in this world.

If you encounter a “free” plan, ironically, you could be in an extremely expensive plan. What their idea of “free” really means is that all fees are coming out of the investment expenses. Said another way, the mutual funds in the plan are sharing in their revenues to pay these fees. But this directly subtracts from your potential returns and most importantly the financial resources you will have when you need it most, at retirement. In addition, your plan may also include more explicit fees such as advisory fees and “hard dollar” costs.

Americas Best 401k takes a “line item” approach to our pricing where every fee is explicitly and transparently shown. This way, you know exactly how much are you paying down to the penny. And since no fees are received from the underlying funds, this allows us to select the best performing, lowest cost funds available.


Don’t Settle for Average

Plan Size Industry Average "All In" Plan Cost America's Best 401(k)
Less Than $1 Million 1.89%
Between $1M and 10M 1.27% 0.75% or Less
Between $10M and $50M 0.89%

Our Fee Structure

By comparison, our clients enjoy a clearly defined fee structure of .75% or less for the “all in” investment related expenses.  This includes the average expense ratios of the funds in our core lineup, custody of the assets and our menu of non-fiduciary and fiduciary services.  This also includes the installation of a 3(38) ERISA fiduciary which significantly alleviates liability for the business owner.

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