[topic 1]

Affordable Pricing

We offer a very affordable web-base 401k plan. Our 401k has heightened investment and plan customization flexibility as well as free technical support getting it started. Please visit our Customization page for complete product comparisons.

(1) First Year Only Fee
Every Web 401k plan incurs a one-time plan setup and system customization fee of $695. In most cases this fee, which is assessed at your plan's outset, is open to IRS rebate (see below). Our setup fee covers complete customization of your 401k plan (including conversion from an existing plan, if applicable) and also customization to that plan of your Web 401k Plan Sponsor Gateway and Plan Participant Gateway.

(2) Annual Fee
Each year (including that first year) there's a Web 401k Access Fee that's commensurate with your plan's size and customization level (see the Pricing chart below). This fee grants you and your employees unlimited use of your Gateways plus our maintenance of those Gateways, including technological as well as content updates (for instance, to government-imposed 401k contribution maximums and other the regulatory parameters that help define your plan's IRS-compliant, highly automated operation).

-- Web 401k fees are significantly less than industry averages (scroll down to our Price Comparisons).

 

Please note: Web 401k pricing includes everything you'll need EXCEPT (1) investment custodian services, which handle the safe and secure transfer of 401k monies to and from each participant's designated investment(s), and (2) the ERISA bond required by the federal government for any retirement plan. Please see Our Pricing Is All-Inclusive, below, for a listing of all that's included as well as links to information on custodian services and ERISA bonds.

Web 401k charges NO plan conversion fees (should you already have a 401k plan that you want to run via Web 401k), NO processing fees (per enrollment, per loan, etc.) nor any administration fees, because you perform the few mouse clicks required. There's even free technical support during your plan's setup period. (See our Technical Support page for more information.)

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[topic 2]

401k Comparisons and the True Impact of Hidden 401k Fees

Many 401k plans contain significant hidden fees. This is especially true of 401k plans offered to small companies, where it is easier to hide fees from small business owners, who are busy running their businesses and do not have the time or staff to review all the legal mumbo-jumbo of setting up a new plan or reviewing plan documents.

These hidden fees are being lifted from the back pockets of 401k plan participants. The US Department of Labor is trying to force 401k plan providers (banks, mutual fund companies, insurance companies, brokerages, etc.) to come clean about these hidden fees. But there is significant lobbying power at play to stymie the government's effort to force comprehensive 401k fee disclosure.

Here are the facts:

ICI (Investment Company Institute)
and Deloitte

According to a recent study by the ICI (Investment Company Institute) and Deloitte titled, "Defined Contribution / 401(k) Fee Study". the average 401k plan has hidden fees of 0.72% per year. That may not seem like much, but it costs the average participant about $11,000 in hidden fees for the lifetime of his or her 401k. These fees are extracted directly from the 401k participant's account. In their study, ICI and Deloitte call these hidden fees "all-in" fees. The average hidden "all-in" fee of 0.72% equates to $350 per year, extracted from participants' accounts.

For small 401k plans that cover less than 20 employees and less than $1 million in total assets, the hidden "all-in" fee situation is much worse. For small 401k plan participants, hidden "all-in" fees can jump from 0.79% to a whopping 1.89%, or up to $920 per plan participant per year! For small plan participants, this can mean paying an astounding $28,000 in hidden fees for the lifetime of his or her 401k. See pages 6, 16, 19 and 20 of ICI/ Deloitte report by clicking the report cover. If you are selecting a 401k for your employees, did you know they could be unknowingly losing $350 to $920 a year in hidden fees?

In most 401k plans, large and small, the employer pays the 401k plan's annual record keeping fees. These fees vary; below is a representative sample of annual record keeping fees:

401k fees for a company with 15 employees & $1 million in assets...
Web 401k		(www.web-401k.com)	=	$695
401k Easy Online		(www.401k-easy-online.com)	=	$995
The Online 401k		(www.theonline401k.com)	=	$1,100
Wellington 401k		(www.wellington401k.com)	=	$1,350
Employee Fiduciary		(www.employeefiduciary.com)	=	$1,500
Sharebuilder 401k		(www.sharebuilder401k.com)	=	$1,800

...and how prices skyrocket when the "all-in" and hidden fees are disclosed...
Web 401k	:	$695 + [No hidden "all-in" fees]	=	$695 per year complete!
401k Easy Online	:	$995 + [No hidden "all-in" fees]	=	$995 per year complete!
The Online 401k	:	$1,100 + ["all-in" fee of 0.72% to 1.89% of $1 million]	=	$8,300 to $20,000 per year
Wellington 401k	:	$1,350 + ["all-in" fee of 0.72% to 1.89% of $1 million]	=	$8,550 to $20,250 per year
Employee Fiduciary	:	$1,500 + ["all-in" fee of 0.72% to 1.89% of $1 million]	=	$8,700 to $20,400 per year
Sharebuilder 401k	:	$1,800 + ["all-in" fee of 0.72% to 1.89% of $1 million]	=	$9,000 to $20,700 per year

So it's not rocket science to understand why many plan providers in the 401k industry are blowing smoke to make any discussion about hidden or "all in" 401k fees confusing and bewildering. There is a great deal of money at stake, and all this smoke clouds the fact that many small employers are unknowingly offering their employees 401k plans laden with hidden fees.

Hidden and "all-in" 401k fees are getting noticed by the news media and the legal profession via class-action law suits, and some 401k plan providers that made fortunes mining hidden fees are now scrambling to cover their tracks. They are generating the kind of PR confusion many of us remember from years past, when major tobacco companies tried to explain to Americans that smoking was not hazardous their health. Many in the 401k industry are launching the same kind of PR assault, confusing and clouding the issue, but what is really at stake is the end of their 401k hidden fee gravy train, pure and simple.

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[topic 3]

Our Setup Fee Is a One-Time Charge

The Web 401k setup fee is a one-time charge that covers customization to your needs of both our IRS-approved prototype 401k plan (and the official documentation related thereto) and the online 401k Plan Sponsor Gateway and Plan Participant Gateway that you and your employees will use to interact with your customized plan.

-- Our experienced personnel can help you understand your 401k plan and plan management options so you can make educated decisions as to what is most desirable for your company.

-- To view a list of the customization options available, visit either our Customization page (for a general listing of our customization items) or scan through the appropriate Order Form (which list the EXACT parameters available for each customization item).

-- If you'd like more information about any item, just check the "Unsure. Please contact..." button within our Order Form; a Web 401k representative will contact you at your convenience to answer your questions. Alternatively, e-mail us your question or call us at 1-800-752-4015 any weekday during normal business hours.

-- Once you're happy with your plan and plan management's construction, our technical team will code your customization decisions into your online Web 401k portals, streamlining operation of your 401k's management and participation therein. Automation is so complete that plan management via Web 401k takes most small businesses less than 20 minutes a month — while saving them thousands of dollars a year.

All this customization and its resulting automation is covered by the one-time setup fee you pay at your plan's outset.

Future Changes
You don't ever have to feel locked in to your 401k plan customization decisions with Web 401k.

-- Contact us if, at any time, you want to alter your customization decisions. For instance, some companies choose to exclude 401k loans in the early years of their plan, then add in the option at a later date.

-- Sometimes changes are simple for us to implement and can thus be done at little to no charge. However, we do reserve the right to charge for changes initiated by you that require us to recustomize your 401k Gateways and/or official 401k documents. The maximum charge for recustomization work is $500 per instance; the actual fee depends on the complexity of the requested change(s).

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[topic 4]

Our Setup Fee Is Generally IRS-Rebatable

The first-year-only setup fee your company pays for Web 401k is likely rebatable in the form of a federal tax credit.

Most new (non-conversion) 401k plans will qualify to receive this recent federally-mandated dollar-for-dollar refund. As with nearly all tax credits, however, there are some restrictions. We recommend you check with your tax advisor regarding your company's qualifications.

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[topic 5]

Price Comparisons

We compared the cost of a fully-customized Web 401k with the cost of bundled 401k plans (view definition) offered by a broad cross-section of major national 401k vendors that let you use either self-directed discount brokerage accounts or no-load mutual funds as your 401k investments.

-- It's not a perfect comparison, of course: Their 401k plans include their "full-service" 401k administration (you still have to provide them with the same data Web 401k let's you process with a mouse click, but with other vendors you have to wait while they, on their own schedule, run the data through their computers); also, our plans include hands-on access to all participation and administration functions, unbeatable investment choice, substantial plan flexibility, the best in asset security, employee statements at a mouse click, compliance testing at a mouse click (with results in seconds), free IRS 401k reporting help, and a 60-day money-back guarantee.

-- We found that Web 401k clients save 60% or more every year off the lowest priced national vendor's bundled 401k plan. That's a savings of 60% or more for about 20 minutes of online data-entry-type work a month!

Compare for yourself. The chart below lists pricing for 20-person plans and 100 person plans by Web 401k and a few of our competitors. (We didn't think it would be fair to compare really small plan pricing because, while we offer price breaks all the way down to the one-person 401k, few, if any, of our national competitors do the same.)

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[topic 6]

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[topic 7]

Our Pricing Is All-Inclusive

Advisors 401k pricing covers just about everything you need to provide your company with a great 401k plan, including...

• An IRS-approved prototype 401k plan
Our IRS-approved prototype 401k plan is replete with 401k customization options that enable your company to offer a 401k plan from which you and your employees can truly benefit.

• Unlimited access to your plan-specific online Plan Sponsor and Plan Participant Gateways
We customize powerful yet easy-to-use 401k plan management and participation Gateways to the exact 401k customization options you choose for your plan. The customization information works in conjunction with the IRS and other governing regulations we program in to streamline your 401k's operation and keep you apprised of your plan's health and growing wealth. Your online system is seamlessly updated as needed to keep its functionality simple, straightforward, and in line with 401k regulations.

• 401k help
You receive free, professional help with understanding your 401k plan management options as well as with actually running your 401k via Advisors 401. Plan operation help includes our Getting Started Guide as well as both free and affordable fee-based technical support.

• 401k investments
Advisors 401 lets you choose both the investment approach and the specific investment provider(s) for your 401k plan. No other 401k plan offers greater investment flexibility. Visit our Investments pages for specifics, including listings of potential investments.

• Plan-specific 401k forms and materials
Our online, plan-specific 401k participation and employee education forms and materials explain 401k concepts -- 401k loans, 401k enrollment, 401k investing, etc. -- to your employees while gathering data from them that you need to run your company plan in just minutes a month.

• IRS reporting help
Our 401k FedForms website (www.401kfedforms.com) is a free service to our 401k clients. The website tells you which federal reporting forms are relevant to your particular 401k plan, then displays annotated versions of each relevant Form and Schedule (Forms 5500, 1099-R, etc.). The annotations tell you exactly where within your 401k system to locate the requested information. 401k FedForms even includes ready-to-complete Summary Annual Report PDFs that take just moments to fill in.

There are two items you'll need to purchase separate from signing up for Advisors 401 (neither of which, due to the nature of the product/service, are under the umbrella of what we can provide):

(1) An ERISA bond
Federal regulations require that all pension plans, including 401k plans, be insured by an ERISA bond that has a payout equal to 10% of plan assets or $500,000, whichever is less. The annual premiums for an ERISA bond average about $200 a year or less. (See topic 8 on our ERISA Compliance page for more information).

(2) Investment Custodian Service
Your investment custodian will handle the actual transfer of monies into and out of your 401k plan, and is specially insured, etc., for such. Custodian fees are most commonly based on the dollar value of your company's plan they're generally much less than half of one percent per year. As explained the Investments section, Advisors 401 collects NO commissions, rebates, revenue-sharing or other compensation from any investments.

Feel free to contact us if you have any questions.

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[topic 8]

Money-Back Guarantee

Advisors 401 comes with a 60-day money-back guarantee on your annual fee. The first-year-only setup fee, however, is nonrefundable -- which is why we created a fully functioning demo version of our online 401k system. You can try everything out BEFORE you spend a dime.

-- The online demo is the "real" Advisors 401. It simply has been customized to service a few fictitious companies' 401k plans so that it can contain data you can experiment with. Nearly every 401k participation and management feature is activated.

-- Use the online demo to get a feel how convenient a self-service 401k can be.

-- Give us a call at 1-800-752-4015 or send us an e-mail if you'd like to schedule a guided tour of the system, or if you'd like us to supply you with instructions on how to complete a common task or two. (Actual clients receive our helpful Getting Started Guide; while the system is very easy to use, people unfamiliar with 401k plans might not know just where to start.)

-- If you like the idea of self-service plan participation but aren't interested in self-service plan management, let us know. We can refer you to a company that uses a version of our online system to provide clients with self-service 401k participation and self-service accessibility to certain reports and information but that handles the bulk of your 401k plan management for you. Fees are higher than for Advisors 401 but still quite reasonable.

-- If you sign up for Advisors 401 and later find the self-service approach is not right for your company, just contact us. We can help you find the setup that is right for you.

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[topic 9]

Most Technical Support Is Free

With your purchase of Advisors 401 you receive free help with getting your plan up and running.

-- The easy-to-read Getting Started Guide helps you launch your plan as soon as you receive your pass-code information You simply input -- or upload -- basic employee data, and you're ready to go. The Guide even contains helpful tips about marketing your new plan to your employees.

-- The Guide is accompanied by a supplementary CD-ROM that contains background detail about managing a 401k plan as well as instructions for transactions that aren't typical to monthly 401k administration (and hence not included in the main Guide) but that do occasionally arise.

-- We're also here to help with getting your plan off the ground. Setup help is free. Our tech support phone number is listed at the front of your Getting Started Guide, or you can e-mail us at web401k@401k-network.com.

-- We also offer ongoing support. Online support is always free, and we find clients rarely need anything else. If you do, however, we offer one-on-one telephone-based support for free for our Elite 401k clients and at very reasonable rates for our Economy 401k clients. Visit our Technical Support page for specifics.

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[topic 10]

Plan Conversions

Advisors 401k Online can accommodate new or already existing 401k plans of any size. Most plan conversions to 401k Easy Online are done for only $500

-- Visit our Convert An Existing Plan page for more information.

-- See our 401k Conversion Plan Order Forms for a listing of plan customization options available with Advisors 401.

-- If you have specific questions about converting your existing 401k plan for use with Advisors 401, submit an Order Form and with "Unsure. Please contact..." buttons clicked, where applicable. This is the most expedient way for us to serve you, even if all you want at the moment is answers to your plan conversion-related questions. Submitting an Order Form IN NO WAY obligates you to actually placing an order, and no money changes hands; the Order Form simply gathers the data we need to accurately answer your 401k-related questions.

-- If for some reason you prefer not to submit an order form, you can call us at 1-800-752-4015 , but the call will take longer than if you first submit an order form.

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[topic 11]

IRS Reporting Help Is Free

Advisors 401 includes free help with your 401k-related federal reporting forms and reports.

-- Our 401k FedForms website (www.401kfedforms.com) shows you annotated versions of the relevant year's 401k-related federal reporting forms and schedules (Form 1099-R, the 5500 series, etc.) and tells you which are relevant to your particular 401k plan, when each is due to the IRS, plus additional information.

-- 401k FedForms contains both popup instructions and printable annotations that tell you where within your online 401k system to locate needed information.

-- 401k FedForms even includes ready-to-complete Summary Annual Reports that take just moments to fill out.

-- 401k FedForms is a free service for all our Advisors 401 clients.

-- Click here to preview our 401k FedForms website. 

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[topic 12]

No Trustee Fees

Advisors 401 plans are IRS-approved as employer-trustee, which means you never have to hire — and thus never have to pay — a 401k trustee.

-- Trustee fees in other 401k plans can add up to hundreds of dollars a year. Just one more area of savings with Advisors 401. 

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