GOLD MEDAL WINNER
GOLD MEDAL WINNER
A third-party administrator (TPA) assists the plan sponsor with plan document design, compliance testing and Form 5500 preparation.
Capital Group assists the plan sponsor with plan document design, compliance testing, eligibility tracking and Form 5500 preparation.
Our fixed-dollar approach to plan pricing is designed to be low-cost and transparent and to provide better overall value. Our investment and recordkeeping pricing can help you win and retain plans on the basis of our low all-in plan cost.
We also offer a variety of compensation options for fee-based and commission-based financial professionals and TPAs. Recapture accounts for financial professional and TPA compensation are available for share classes R-2, R-2E, R-3 and R-4.
With a fixed-dollar approach to plan pricing, plan assets — depending on the share class — generate a plan credit that can offset plan expenses. Over time, net plan expenses, as a percentage of assets, will decrease as assets grow.
Step 1: Determine the annual recordkeeping fees based on the number of plan participants.
Step 2: Choose a share class depending on (1) how the plan sponsor wishes to pay for the recordkeeping fees (with or without expense ratio revenue generated by plan credits) and (2) what level of compensation is necessary to meet the plan’s service requirements.
|Plan credit and compensation are included in the expense ratio|
|Approximate plan credit
(varies by fund)
|Share class||Average expense ratio*||PlanPremier-TPA||PlanPremier-Bundled||Financial professional compensation||PlanPremier-TPA|
*Average expense ratios shown are provided only as examples. The actual average expense ratio depends on the investments selected for the plan and participant allocations. Expense ratios reflect applicable fee waivers and expense reimbursements, without which expenses would be higher. The average expense ratio shown for each share class is for all funded investments and is weighted, based on average daily net assets in the program as of 12/31/2021. Accordingly, more weight is given to funds with more assets. Actual expense ratios, as reported in each fund's prospectus available at the time of publication, range from 1.11% to 3.76% for R-2; 0.77% to 2.08% for R-2E; 0.77% to 2.85% for R-3; 0.34% to 3.01% for R-4; 0.04% to 1.35% for R-5E; 0.04% to 1.80% for R-5; and 0.04% to 2.76% for R-6.
> Plan assets: $2.5 million
> Estimated annual contributions: $150,000
> Eligible employees: 50
> Participants with account balances: 50
PlanPremier plan credits can offset plan expenses
† Credit rates may vary depending on a plan’s investment options. Reducing the compensation rate for share classes R-2 through R-4 will increase the plan credit for this illustration. In practice, the share class compensation will be directed to an unallocated plan account where it can be used to pay the plan’s financial professional, reasonable plan administration expenses, or allocated to participant accounts.
With PlanPremier you can develop a diversified menu intended to improve retirement outcomes.
Learn more about our target date series and individual mutual funds:
American Funds Target Date Retirement Series
The American Funds Target Date Retirement Series and other highly regarded American Funds are also available on many other DC platforms#.
¶ Not all of the American Funds are available in our retirement plan solutions.
§As of 12/31/2021. Available investment options will vary by retirement plan solution and share class.
**Schwab Asset ManagementTM is the dba name for Charles Schwab Investment Management, Inc. (CSIM).
Get estimated costs for retirement plans.
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Financial professional compensation
Look up compensation on different share classes.
Share class pricing and details
Get information on a wide choice of share and unit classes.
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Strategies to find good leads and new clients.
The true test of any long-term retirement plan solution is the level of service and support the provider offers to you, as the plan financial professional, your plan sponsor clients and their plan’s participants.
The PlanPremier online experience makes it easier for plan sponsors to manage their plans and for participants to prepare for their future; for a compelling overview, watch or share this video.
Get personalized sales support to build your retirement plan business
Rely on ongoing service to help retain satisfied clients
Help improve participant outcomes with enrollment and education support
For help selecting and monitoring investments, sponsors can use a fiduciary services provider of their choice; in addition to others, we facilitate access to services from Wilshire Advisors, LLC (Wilshire®)§§.
Order a retirement plan proposal
Order a retirement plan proposal for PlanPremier.
‡ Source: Escalent, Cogent Syndicated, Retirement Plan Advisor TrendsTM, September 2021. Methodology: 682 respondents participated in a web survey conducted August 18 to August 25, 2021. The respondents consisted of financial advisors managing defined contribution (DC) plans.
# Check with your home office for details.
†† This feature’s availability is dependent on information provided in the payroll file.
‡‡ A wide range of payroll providers are approved to work with American Funds.
§§ Wilshire’s recommendations are subject to any generally applicable limitation on the investment options available, including limitations imposed by the plan’s recordkeeper or financial professional. Plans that elect target-date mapping at plan conversion may only choose coverage under the 3(21) Select List. Wilshire® is a registered service mark of Wilshire Advisors, LLC, Santa Monica, California. All other trade names, trademarks and/ or service marks are the property of their respective holders. Wilshire is not an affiliate of any member company of American Funds. Wilshire is solely responsible for the program material and its investment recommendations. The complete terms and limitations of Wilshire’s 3(21) Investment Adviser and 3(38) Investment Manager programs may be found in the applicable agreement between the plan sponsor and Wilshire.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
Although the target date portfolios are managed for investors on a projected retirement date time frame, the allocation strategy does not guarantee that investors' retirement goals will be met. Investment professionals manage the portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the target date gets closer. The target date is the year that corresponds roughly to the year in which an investor is assumed to retire and begin taking withdrawals. Investment professionals continue to manage each portfolio for approximately 30 years after it reaches its target date.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only. Use of this website and materials is also subject to approval by your home office.
American Funds Distributors, Inc., member FINRA.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.