No. of Recommendations: 1
A 1% fee smells like investment advice to me, not like plan costs. There's really no way around some costs on a full blown profit sharing plan (a Keogh plan for the self-employed). You'll need a formal plan document which needs to be amended from time to time as congress makes changes in the tax laws. There are plan administrators (and, yes, banks can do that) who will help you set up the plan and keep it in compliance. You can also use an attorney or an accountant for this, although my preference is for either the attorney or plan administrator with an IRS approved "prototype" plan. Most of them will charge a fixed fee rather than a percentage of assets.

Then there is an annual reporting requirement (on one of the form 5500 series - likely a 5500EZ for your one-participant plan). Once again, any of the people previously mentioned can prepare this. This time I lean towards the accountant or plan administrator (attorneys just seem to have a problem keeping all the numbers straight - but then I'm a CPA and perhaps biased).

--Peter
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement