Retirement plans can be intimidating and confusing for business owners that haven’t offered them before. Traditional plans were bulky and often cost-prohibitive for smaller employers, but modern 401(k) platforms have made retirement benefits vastly more accessible.
Start-Up Fees
Legacy 401(k) providers typically charge high setup fees alongside hidden administrative costs.
Depending on your plan design, 401GO setup fees range from $0 (GO-Starter) to a standard one-time fee for customized plans like GO-Plus ($500) or Solo 401(k) ($250).
Furthermore, under SECURE 2.0 legislation, eligible small businesses with 50 or fewer employees can qualify for a federal tax credit covering 100% of qualified administrative and setup costs—up to $5,000 per year for the first three years. Additional credits are also available for automatic enrollment features ($500/year for 3 years) and employer matching contributions.
Our platform automates the setup process for both employers and employees. What used to take weeks of coordination with multiple vendors can now be done in minutes online.
Management Fees
The cost of day-to-day operations for a 401(k) plan generally falls into three categories:
- Administration: Covers account recordkeeping, compliance testing, reporting, disclosures, and customer support.
- Investment Expenses: Asset-management fees associated with funds are paid by plan participants (not the employer) as an expense ratio on total invested assets.
- Service Fees: Fees associated with specific participant transactions, such as loans or distribution requests.
Because 401GO acts as a bundled provider—serving as recordkeeper, TPA, custodian, and fiduciary—you avoid layered fees from multiple parties.
Contribution Costs
Employer-matching contributions or profit-sharing options are optional depending on your plan design. Employer contributions do not vary based on the provider; they depend solely on your chosen plan structure, participant eligibility, and contribution amounts. In most cases, employer contributions are tax-deductible.
Transparency in Pricing
Before committing to any 401(k) platform, always confirm whether fees cover routine filings (such as Form 5500), trustee services, and compliance monitoring.
401GO provides fully transparent pricing with no hidden surprises. To see our current plan tiers and pricing breakdown, visit our official Pricing Page.