What Does A Defined Benefit Plan Cost?

Fees and Services

We offer a cost-effective and comprehensive Defined Benefit plan solution.

Our pension administrator creates a customized Defined Benefit plan designed specifically for each individual plan owner. Unlike SEP-IRAs and 401(k)s, Defined Benefit plans are not one-size-fits-all plans. DB plans are unique and customized to the plan owner's circumstances. Therefore, they do have expenses associated with set-up and on-going administration. The costs of DB plans, however, pale in comparison to the tax savings they enable.

If you have your plan documents drafted and drawn up from scratch by your own actuary and tax attorney, costs will likely increase. At Orion, we hold down costs in this regard by using a prototype plan developed and implemented by our pension administration partner. These plan documents are already in use with existing plan owners and are familiar to the IRS. Using a prototype plan is both a very cost-effective and straightforward solution for our clients.

**Important: All fees detailed below are tax-deductible**

Defined Benefit Plan and DB Plan with 401(k)

 

Plan design & document preparation fee:

Plan


Defined Benefit Plan

401(k) Plan

Annual plan administration fee:

Plan


Defined Benefit Plan

401(k) Plan

Annual investment management fees:

Based on plan assets: 0.6% - 1.0%

(first year only)

One Participant


$1,250

$200

 

One Participant


$1,950

$550

 


Each Additional Participant


$250

 

 

Each Additional Participant


$150

$150

 

Cash Balance Plan and Safe Harbor 401(k)/Profit Sharing Plan

 

Plan design & document preparation fee:

Plan


Cash Balance Plan

401(k)/Profit Sharing Plan

Annual plan administration fee:

Plan


Cash Balance Plan

401(k)/ Profit Sharing Plan

Cash Balance Plan & 401(k) Testing Fee:

$650

Testing Fee for pre-existing 401(k) Plan:

$850

Annual investment management fees:

Based on plan assets: 0.6% - 1.0%

(first year only)

2-5 Participants


$2,250

$1,250


2-5 Participants


$2,850

$1,450


6+ Participants


$2,250 + $100 per additional

$1,250 + $50 per additional

 

6+ Participants


$2,850 + $100 per additional

$1,450 + $50 per additional