JULY Launch and Custom plan fees may include flat, asset-based, investment-related, and transaction fees. This information is not intended to replace the official Fee Disclosure clients will receive upon plan setup pursuant to IRC 408(b)(2) but provides more details on our fees. For more information, please contact your JULY sales team.
One-Time Setup Fees
The following one-time setup fees will be charged upon engaging JULY.
The setup fee covers the cost of plan design consulting and plan document preparation. For Combo Plans this includes a fee of $350 for the 401k and $2,950 for the Cash Balance Plan.
Quarterly Flat Fees
The following monthly core fees will be charged pursuant to the fee payment details discussed below.
First Year Minimum — A first year minimum fee ($1,000 for Launch / $2,000 for Custom) covers the cost of year-end compliance for year one. This only applies when the plan is set up late in the year and does not apply to a Cash Balance Plan.
Multiple Payroll Schedules — A fee of $300 per year applies when the plan has multiple payroll schedules. This covers the added services and costs for additional 401k payroll data management.
IRS Form 5330 — A fee of $500 applies if the plan needs to file IRS Form 5330, most commonly for funding payroll contributions late.
Fee Increases — A fee increase of 2% applies after 12 months to all fees.
Combo Fees — The quarterly flat fees for the Combo Plan Option are detailed as follows:
- 401k – $750 + $24
Cash Balance – $1,050 + $21
Plan Documents — Plan amendments and plan restatements are included as part of the flat fee.
The following asset-based fees (expressed annually) will be automatically deducted from participant accounts following the end of each quarter.
- Managed Accounts — An additional recordkeeping fee of .05% per year will charged for plans that offer a managed account service. The fee will only be assessed to participants that choose the option.
- 3(38) Fiduciary Fee — If a provider other than Expand Financial provides investment fiduciary services, the fee may vary from .07% shown above.
- Combo Plans — The asset-based fee for combo plans will depend on the investment platform used (i.e., if assets are held at the same custodian as the 401(k) or if they are held in a brokerage account).
- Custodian Fees — JULY pays the custodian fees for the plan out of its fee. The asset-based fee above may be different if the plan uses Schwab or Pershing.
- Advisor Fees — Your Advisor will charge a separate fee for their services.
Fee Payment Details
JULY invoices flat fees following the end of each quarter (March 31, June 30, September 30, December 31). Flat Fees must be paid by the employer until assets reach $200,000 after which the employer may elect to have fees paid by the plan. For 401k plans, the first invoice will be sent on the quarterly billing date following the earlier of the date assets are first funded to the plan or 30 days following the date of the signed service agreement. If payment from plan assets is elected and the plan has no assets, the invoice is paid by the employer.
The following investment-related fees apply:
- Launch + Expand Financial — Plans that use Launch with Expand Financial as the 3(38) Investment Fiduciary will have a Core Investment Menu with an average expense ratio of .12%. Investment management fees are paid to the investment manager out of plan assets pursuant to the investment’s prospectus. The expense ratio of target date options, risk-based portfolios, or managed accounts will differ from the average expense ratio of core funds. Note: We could show the investment menu here and make it dynamic.
- 3(38)Launch Without Expand Financial — The average investment management expense for Plans that use Launch with another 3(38) Investment Fiduciary will depend on the specific investment menu chosen.
- Custom — With custom, you and your advisor will build a custom investment menu. The investment management expenses will vary based on the specific investments chosen.
Any revenue sharing JULY receives will be credited back to plan as an offset to the investment from which the revenue sharing was paid.
Participant Paid Fees
The following fees are paid by participants for specified transactions:
A fee of $1,000 applies for termination of the plan or conversion to another provider.
Other Options and Fees for Custom Only
The following additional services and fees may apply for plans on our Custom solution only:
- Fidelity Bond — For plans choosing our Custom solution, each plan is required to maintain Fidelity Bond Insurance. The cost of the bond is an additional charge and starts at approximately $100.
- Brokerage Accounts — With Custom, you have the option of offering an Individual Brokerage Account Window. Fees vary for this service depending on the option chosen.
- Investment Models — JULY can create Investment Models on our recordkeeping platform. If you choose this option, an additional flat fee of $125 per quarter applies.
- Exchange Traded Funds — An additional fee of $0.01 per share traded applies to plans that wish to offer Exchange Traded Funds as investment options. These fees are deducted from participant accounts.
- Trustee Fees — Corporate trustee services are offered for a fee of $1,250.