Our example below illustrates the cost of a $1.0 million plan with 20 employees: Option 1 - Quarterly Reporting We estimate that the total annual cost, including administration, will be 1.0325% or $10,325* Annual TPA Cost $ 1,325.00 Annual Cost per Employee (est 20@$75) $ 1,500.00 Annual Starboard Investment Management Fee (0.50%) $ 5,000.00 **Average Annual Fund Fees (est 0.25% p/yr) $ 2,500.00 TOTAL $10,325.00 Option 2 - Annual Reporting We estimate that the total annual cost, including administration, will be 0.9375% or $9,375* Annual TPA Cost $ 875.00 Annual Cost per Employee (est 20@$50) $1,000.00 Annual Starboard Investment Management Fee (0.50%) $5,000.00 **Average Annual Mutual Fund Fees (est 0.25% p/yr) $2,500.00 TOTAL $9,375.00 * please note: there will be a $750 one time start-up fee in the first year. If you are a new plan, please ask us how you can deflect some of this start-up cost through a small business 401k tax credit. **We are able to keep this cost so low due to the use of ETF's and Index mutual funds which have substantially lower fee structures than the actively managed funds found in most traditional 401k plans. According to a study by Hewitt & Associates the average mutual fund expense ratio is 1.51%. Using that number, the average cost of investment management alone would be $15,100 on $1.0 million plan. You would still have to add on pricey daily valuation administrative costs on top of that to come up with your total annual cost! This is the way it works with most large insurance company and mutual fund company plans.