FEES MATTER. FUNDS MATTER. PROTECTION MATTERS.

What You Need to Know About

Your 401k.

One study from AARP in 2011 showed 71% of participants thought that they didn’t pay any fees in their 401k. We all know that there is no free ride. Most of the “free” plans have the highest fees, they are just hidden. 

How much is your 401k costing you? 

According to public policy think-tank Demos, the average worker will lose $154,794 to 401k fees over their lifetime (based on annual income of approximately $30,000 per year and saving 5% of their income each year). A higher-income worker, making approximately $90,000 per year, will lose upwards of $277,000 in fees in their lifetime. Our Plan offers no TPA fees after enrollment. (one-time enrollment fee of $850)

Forrestall CPAs was founded in 1978 and has been providing Third Party Administration (TPA) 401k services for clients since 1997. In 2017, the Department of Labor increased the requiremets for 401k plan fee disclosures. The new requirements require disclosure of roughly half of the fees that can be associated with 401k plans.

Jeff decided that more transparency is better and created the “Forrestall Plan” with complete transparency of all associated 401k plan costs. This type of transparency allows business owners to reduce their plan costs dramatically. The “Forrestall Plan” fees are generally less than one-third of the standard/market fees.

770.945.8328 | www.forrestallcpas.com

Forrestall CPAs was founded in 1978 and has been providing Third Party Administration (TPA) services for 401k plans since 1997. Jeff Forrestall began this practice section of the Firm and continues to oversee its operations. Forrestall CPAs has over 25 years of experience performing annual audits of 401k plans. Jeff has the rare distinction of being able to “audit the auditor”. Jeff performs peer reviews for ERISA plans, reviewing the audit work of other CPA firms. There may be less than a dozen CPAs in Georgia who have the experience and license to audit other auditors of 401k plan for compliance. Jeff, along with many of his CPA staff at Forrestall CPAs, has earned the American Institute of CPAs (AICPA) certification in Advanced Defined Contribution Plan Audits. Jeff and many of his staff hold several certifications from the American Society of Pension Professionals & Actuaries (ASPPA). 

FEES MATTER

Making the switch to the Forrestall Plan is not just about saving on fees. It’s about the funds! Odds are, your 401(k) plan is packed full of expensive “actively managed” mutual funds that are hoping to beat the market index but continually fail. And to add insult to injury, they are paying huge sums to be offered as a “choice” in your plan. So why would you pay substantially more to be in funds that are failing?

Below is a chart showing what percentage of active managers failed to beat the index for the past decade.

FEES AFFECT SAVINGS OVER TIME 
Investing $10,000 a year in a retirement plan that averages 7% returns over 30 years is great. But investing with a 2% fee instead of a 0.5% fee can cost your plan $222,284.

PROTECTION MATTERS

Our Forrestall Plan costs automatically go down as your plan grows. You don’t have to call your broker to negotiate for lower fees – we do it automatically! The Forrestall Plan saves the employee money through lower investment costs. It then saves the Company money by reducing or eliminating annual Third-Party Administrator costs. If your Company has over 120 employees your 401K Plan most likely requires an audit that could cost in excess of $7,500.

This auditor fee is already included in the Forrestall Plan! As the Trustee and Third-Party Administrator, Forrestall CPAs works with your current CPA auditor, or we can help you choose an auditor. Having an experienced CPA who “audits the auditors” ensures quality in your choice of an auditor. 

How does the Forrestall Plan offer a better 401k Plan at 1/3 of the average price? The design of the plan removes the commission/broker fees and has negotiated a lower cost of investments through the Forrestall Plan having in excess of $30 million dollars. Our efficiency comes with over 25 years of experience.

A 3(38) serves as the plan fiduciary/investment manager and helps to legally reduce fiduciary risk for the plan sponsor as much as laws permit.

ABOUT FORRESTALL CPAS AND THE FORRESTALL 401K PLAN

THE FORRESTALL PLAN 
The Best 401k Plan for Your Company. 

MAKE THE TRANSITION
• Lower Costs
• Higher Quality
• More Service

Jeff is the designer and the sponsor of the “Forrestall Plan”. Forrestall CPAs is the Third-Party Administrator of the plan providing administration services. These services include: annual preparation and filing of form 5500, compliance testing, enrollment assistance, assist with participant roll-overs, participant loans, and payroll set up for your Company. We also provide additional consulting and planning services at your request. We know 401k plans inside and out. Jeff designed the Forrestall Plan to both save your employees money and
save your Company money.

FUNDS MATTER

PROTECTION MATTERS