New ADP 401k structure?

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newbie003
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New ADP 401k structure?

Post by newbie003 »

I was just told by our advisor that ADP has a somewhat new 401k fee structure, where it's $7/person/month, and $200/month for the plan. No asset mgmt fees (or any other fees of any kind).

They offer a wide assortment of funds including a .02% fund fee Fidelity 500 index fund.

Can anyone verify this and/or advise if ADP is a good 401k provider? I really like the idea of not paying an asset charge and, given the size of our plan and # of participants, this would greatly reduce our overall fees.

Thank you.
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LadyGeek
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Re: New ADP 401k structure?

Post by LadyGeek »

This thread is now in the Personal Finance (Not Investing) forum (401(k) plan).

Is this your company, meaning that you have a personal financial interest in the ownership?
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TomatoTomahto
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Re: New ADP 401k structure?

Post by TomatoTomahto »

newbie003 wrote: Fri Oct 22, 2021 4:29 pm I was just told by our advisor that ADP has a somewhat new 401k fee structure, where it's $7/person/month, and $200/month for the plan. No asset mgmt fees (or any other fees of any kind).

They offer a wide assortment of funds including a .02% fund fee Fidelity 500 index fund.

Can anyone verify this and/or advise if ADP is a good 401k provider? I really like the idea of not paying an asset charge and, given the size of our plan and # of participants, this would greatly reduce our overall fees.

Thank you.
That sounds crazy. It’s a heavy lift to get anyone to save for retirement, but those fees would preclude any beginners from using the plan. It’s probably fine for you OP, with large balances, but cost prohibitive for others.
I get the FI part but not the RE part of FIRE.
dukeblue219
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Re: New ADP 401k structure?

Post by dukeblue219 »

TomatoTomahto wrote: Sat Oct 23, 2021 7:51 am
newbie003 wrote: Fri Oct 22, 2021 4:29 pm I was just told by our advisor that ADP has a somewhat new 401k fee structure, where it's $7/person/month, and $200/month for the plan. No asset mgmt fees (or any other fees of any kind).

They offer a wide assortment of funds including a .02% fund fee Fidelity 500 index fund.

Can anyone verify this and/or advise if ADP is a good 401k provider? I really like the idea of not paying an asset charge and, given the size of our plan and # of participants, this would greatly reduce our overall fees.

Thank you.
That sounds crazy. It’s a heavy lift to get anyone to save for retirement, but those fees would preclude any beginners from using the plan. It’s probably fine for you OP, with large balances, but cost prohibitive for others.
Most employers would pickup the $7/mo I assume rather than passing it along. It's cheaper than many alternatives...
Last edited by dukeblue219 on Sat Oct 23, 2021 7:54 am, edited 1 time in total.
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oldcomputerguy
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Re: New ADP 401k structure?

Post by oldcomputerguy »

TomatoTomahto wrote: Sat Oct 23, 2021 7:51 am
newbie003 wrote: Fri Oct 22, 2021 4:29 pm I was just told by our advisor that ADP has a somewhat new 401k fee structure, where it's $7/person/month, and $200/month for the plan. No asset mgmt fees (or any other fees of any kind).

They offer a wide assortment of funds including a .02% fund fee Fidelity 500 index fund.

Can anyone verify this and/or advise if ADP is a good 401k provider? I really like the idea of not paying an asset charge and, given the size of our plan and # of participants, this would greatly reduce our overall fees.

Thank you.
That sounds crazy. It’s a heavy lift to get anyone to save for retirement, but those fees would preclude any beginners from using the plan. It’s probably fine for you OP, with large balances, but cost prohibitive for others.
Are these costs borne by the company, or by the individual employee investors? If the latter, I'm in agreement with the above, this seems pretty burdensome.
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TomatoTomahto
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Re: New ADP 401k structure?

Post by TomatoTomahto »

oldcomputerguy wrote: Sat Oct 23, 2021 7:54 am Are these costs borne by the company, or by the individual employee investors? If the latter, I'm in agreement with the above, this seems pretty burdensome.
I just reread OP and it sounds as $200/month are overall costs (ie, not borne by each participant). That makes more sense.

Apologies for not letting coffee kick in before posting. Again. Why do I keep doing this? 😁
I get the FI part but not the RE part of FIRE.
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