Demystifying 401(k) pricing
Transparent, flexible pricing.
Betterment's transparent pricing empowers you to take more control of your expenses. All of our fees are visible so that you know exactly what you are being charged and what services you receive.
Investment advice for plan sponsors and participants.
Advisory services include investment selection, asset allocation and participant advice.
Tailored, unbiased advice for your plan and participants that isn't influenced by external parties or revenue-sharing programs. Personalized investment advice is included for all participants instead of a separate, incremental fee.
Tailored, unbiased advice
Advisory services are overseen by a team of experts. Betterment LLC, an SEC-registered investment advisor, serves as an ERISA 3(38) fiduciary. This means that we are legally required to act in the best interest of your plan and your participants.
All participants receive a managed account solution, which provides automated guidance regarding how much to save and how to invest. Participants can sync external accounts for a holistic view of their savings and investments.
Participants can contact us at 888-428-9482 or email@example.com, 7 days a week.
What is the size of your company's retirement plan?
Your advisory fee is:
0.25% of plan assets
$ total per year
We welcome plans with with assets above $50 million. Please contact us for a custom fee estimate.
Fees charged for investing your plan assets.
Investment in low-cost, exchange-traded index funds at companies such as Vanguard and BlackRock.
Fund selection is unbiased; this means that Betterment does not receive any compensation or benefits from the investment companies selected on behalf of your plan and participants. We select low-cost funds to help optimize your returns.
The Betterment portfolio is a globally diversified mix of stock and bond index funds, aimed at delivering optimal returns at various levels of risk.
Learn more about our investment philosophy and portfolio lineup here.
Fund expenses are charged directly to the plan participant.
*As of March 2017, the asset-weighted average expense ratio for a 70/30 Stock/Bond portfolio was 0.10% and the expense ratios for Betterment portfolios range from 0.08% to 0.15%.
Your estimated fund expenses are:
≈0.10% of plan assets*
$ total per year
Administration and bookkeeping to maintain your plan.
All required recordkeeping responsibilities including tracking participants, investments, and assets in the plan.
Traditionally, recordkeeping fees are hidden in mutual fund expenses, making it difficult to pinpoint exactly what you are paying for this service. At Betterment, our transparent pricing empowers you, as a fiduciary, to link the services provided to the fees paid.
Our team members have extensive experience at recordkeepers and Third Party Administrators (TPAs).
Betterment for Business is using the latest technology, with no legacy systems, enabling a cohesive and modern user experience.
A one-time $500 setup fee will also be applied.
Participant count is driven by participants with positive balances in the plan.
How many employees will participate in the plan?
Your monthly recordkeeping fee is:
First 100 employees: $6 per participant
Next 101-500 employees: $5 per participant
Additional 500+ employees: $4 per participant
total per year: $
Ongoing guidance to assist in alignment with regulations.
We operate as our own compliance administrator and also partner with select TPAs.
Consultative plan design that aligns with your company's needs.
We perform standard compliance tests annually and prepare required government reporting (e.g. Form 5500s).
Team members are active in the American Society of Pension Professionals & Actuaries (ASPPA) and with the Certified Financial Planner Board of Standards (CFP Board).
Compliance fee charged on an annual basis and will not be applied if you work with your own TPA.
Do you plan to partner with a Third Party Administrator?
Your compliance fee is:
$ yearly fee
Your Fee Calculation
Total annual fees, customized to your plan specifications.
Based on your plan size of $ and #, your estimated total annual fee is $, or % of plan assets.
Our flexible structure allows you to decide how to share fees with your employees – for each fee type, you can choose to pay the fee or have participants share the cost.
We believe 401(k) plan fees should be transparent and easy to understand. If you have questions about the fees you are currently paying, contact our team of 401(k) experts to get a custom analysis of your plan.
total $ fee
total % fee
of plan assets
advisory services: $
fund expenses: $
recordkeeping fee: $
compliance services: $
Thank you for your interest. We are unable to generate a fee estimate based on the plan specifications entered. Please revise your selections or contact us for more information.Contact us