Total plan costs for retirement plans have fallen in the last year, according to the 13th edition of the 401k Averages Book. Small plan costs fell slightly from 1.47% to 1.46%, while large plan costs fell from 1.08% to 1.03%. The range of expenses for small plans was between 0.38% and 1.97%. Large plan expenses ranged from 0.28% to 1.41%.
For small plan data in the 13th edition, the authors looked at plans with 50 participants and $2.5 million in assets. Large plans had 1,000 participants and $50 million in assets. In the 12th edition, small plan data was based on plans with 100 participants.
The drop in costs is due to a more experienced industry, Joseph Valetta, co-author of the book, told AdvisorOne on Wednesday.
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