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


Plan Design & Document Preparation - First Year Only

$1,250 — Business Owner

$250  — Each Additional Participant

Annual Administration Fee - Including First Year

$1,950 — Business Owner

$150  — Each Additional Participant

Annual Investment Management Fee

0.6% - 1.0% - Varies based on plan assets

Testing Fee

$200

401(k) Plan


Plan Design & Document Preparation - First Year Only

$200 — Business Owner

$250  — Each Additional Participant

Annual Administration Fee - Including First Year

$550 — Business Owner

$150 - Each additional participant

Annual Investment Management Fee

0.6% - 1.0% - Varies based on plan assets

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Cash Balance + 401(k) Plan


Plan Design & Document Preparation - First Year Only

$3,500 — 2 to 5 Participants

$150  — Each Additional Participant

Annual Administration Fee - Including First Year

$4,300 — 2 - 5 Participants

$150  — Each Additional Participant

Annual Investment Management Fee

0.6% - 1.0% - Varies based on plan assets

Testing Fee

$650