Effective July 1, 2019, BerryDunn has merged with Massachusetts-based firm Rodman CPAs. As one of Massachusetts’ top CPA and business advisory firms, Rodman employs 40 [...]
Reproduced with permission from our Associate Member, Beneco
Retirement plan fees are complicated. Between administration, investment management, recordkeeping, consulting, revenue sharing, sub-TA and 12b-1, it isn’t always clear to plan participants or plan sponsors exactly what they’re paying, how much they’re paying or even who’s paying the fees.
ERISA Section 408(b)(2) states that plan fiduciaries have to determine whether the agreements and compensation of service providers are “reasonable.” The rule requires service providers to supply plans with disclosures to help them determine if fees are “reasonable.” Beneco helps fiduciaries with this complicated determination by identifying:
- All of the total plan cost components
- The various primary drivers of retirement plan pricing
- The role of revenue sharing
The three main components are administrative fees, investment fees and plan consulting fees. Administrative and plan consulting fees may be paid by the plan sponsor or the participant. Investment fees are always paid by participants and deducted from plan assets.
Primary Pricing Drivers
Several key factors can impact plan pricing. The larger the plan in terms of assets, the lower the plan sponsor out-of-pocket (per participant) costs. Other factors to consider include:
- Number of plan participants
- Average account balance
- Service requirements
- Plan design features
Revenue sharing includes payments made by investment managers to service providers or plan consultants for a portion of the revenue generated from the management of a particular fund or funds. Historically, such allowance may or may not be known to a plan sponsor. Regardless, it’s imperative that plan sponsors with fiduciary oversight of their organization’s retirement plan understand the distribution systems that most investment management organizations use and how they share revenue.
The most common forms of revenue sharing can include 12b-1 fees, shareholder servicing fees and sub-transfer agent (sub-TA) fees. In some instances, a portion of the investment management fee for proprietary funds may include some revenue sharing. The diagram below illustrates potential fund expenses.
Fiduciary Best Practices
Best practices dictate that plan fiduciaries must go through a prudent, comprehensive and measurable process of monitoring and documentation to ensure that only reasonable fees are being paid. This process includes:
[/fusion_text][fusion_button link="https://www.beneco.com" text_transform="" title="" target="_self" link_attributes="" alignment="" modal="" hide_on_mobile="small-visibility,medium-visibility,large-visibility" class="" id="" color="default" button_gradient_top_color="" button_gradient_bottom_color="" button_gradient_top_color_hover="" button_gradient_bottom_color_hover="" accent_color="" accent_hover_color="" type="" bevel_color="" border_width="" size="" stretch="default" shape="" icon="" icon_position="left" icon_divider="no" animation_type="" animation_direction="left" animation_speed="0.3" animation_offset=""]Learn More about Beneco[/fusion_button][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]" target="_blank">Understanding Retirement Plan Fees
- Working with an experienced consultant who understands retirement plan fee components
- Disclosing and documenting all fees from retirement plan service providers
- Benchmarking fees annually for due diligence purposes
- In-depth, live-bid benchmarking of fees, services and investments against alternative providers every three years to ensure competitive reasonableness
Reproduced with permission from our Associate Member, Beneco Retirement plan fees are complicated. Between administration, investment management, recordkeeping, consulting, revenue sharing, sub-TA and 12b-1, [...]
CICPAC member firm, Marcum (locations serving Deerfield Illinois, Nashville Tennessee, New Haven Connecticut and Irvine California) releases 2018 JOLTS Analysis report. Marcum is pleased to [...]
Read the full article here or for additional information, email Mike or (832) 742-2411." target="_blank">Mike Karlins Published in Construction Accounting and Taxation Magazine
Mike Karlins, Partner with Calvetti Ferguson (The Woodlands, TX), was published in the Construction Accounting and Taxation magazine's January/February 2019 edition. His article focusing on [...]
Read More" target="_blank">Topeka, KS Office of CBIZ MHM Acquired by BT&Co.
Berberich Trahan & Co. has acquired the Topeka office of CBIZ MHM LLC and Mayer Hoffman McCann P.C. effective Tuesday, said Karen Linn, CPA and [...]
Carl Oliveri, Grassi & Co. (Long Island, NY) – President
- Bryan Eto, BeachFleischman (Tuscon, AZ)
- Wes Winborne, HORNE LLP (Jackson, MS)
- Christina Chifici, LaPorte (Metairie, LA)
- Josh Billiard, EKSH (Fort Collins, CO)
About CICPACWith vast knowledge, respectable histories and high quality financial and consulting service teams, exclusive CICPAC members are the CPAs Who Know Construction. CICPAC brings together 75+ accounting firms who serve over 11,000 construction companies. Membership is territorially exclusive and members must demonstrate proficiency in the construction industry to be eligible. Additionally, the accounting firm must maintain a solid reputation for providing the highest quality work products and integrity in the industry." target="_blank">New CICPAC Board of Directors and Officers for 2018-2019
FOR IMMEDIATE RELEASE: August 7, 2018 Chicago, IL (effective July 18, 2018) – The CICPAC Board of Directors (Construction Industry CPAs and Consultants Association), a [...]
EKS&H team joins Plante Moran, the firm will become the 11th largest accounting, tax, consulting and wealth management practice in the country, with more than 3,000 professionals working in 27 offices to serve national and international clients in the middle market. Combined revenue for EKS&H in 2018 will be close to $700 million. After October 1, the team will be co-branded for nearly a year, and then EKS&H will operate as the Plante Moran brand name. " target="_blank">EKS&H and Plante Moran Become 11th Largest Accounting Firm
Press release from www.cobizmag.com (Colorado Biz publication), 6/18/2018: With a shared commitment to client service and strong value of teamwork, EKS&H announced the firm would team [...]
James Moore & Co. (James Moore) is pleased to announce that the partners and employees of the DeLand CPA and consulting firm, Cohen, Smith & Company, P.A. (Cohen Smith), have joined James Moore, a regional CPA and consulting firm with offices located in Daytona Beach, Gainesville, Tallahassee, and now DeLand, Florida. Effective immediately, Cohen Smith will be known as James Moore. “This strategic move provides us with a tremendous opportunity to strengthen our client services team to better serve our clients,” said George Smith, former managing partner of Cohen Smith, adding, “We are excited about being a part of such a well‐known firm with the reputation and resources of James Moore.” “The joining of our two firms will benefit the clients and employees of both firms,” said Mike Sibley, Partner‐in‐Charge of James Moore’s Daytona Beach Office. “Our clients will have access to increased levels of expertise, and our firms will have additional opportunities for growth and expansion. By building on both firms’ strengths and reputations as CPAs and consultants, we will be able to continue to attract the most talented professionals in the industry.” Established in 1986, Cohen, Smith & Company, P.A. has been providing accounting, tax, consulting and planning, business valuation and litigation support services to both businesses and individuals in Central Florida for over 30 years. Founded in 1964, James Moore & Co., P.L. is a full service firm providing tax, audit, accounting and controllership, human resources solutions, technology solutions consulting, and business advisory services. The firm was named a Best Accounting Firm to Work for by Accounting Today in 2015 and 2016. James Moore is also a member of AGN International, an association of independent accounting firms.[/vc_column_text][/vc_column][/vc_row]" target="_blank">Cohen Smith & Company, P.A. Joins James Moore
DeLand, FL (November 2, 2017) – James Moore & Co. (James Moore) is pleased to announce that the partners and employees of the DeLand CPA and [...]
Warren Hennagin, CPA, MST, CCIFP, CGMA, has merged his construction accounting practice into Marcum LLP, a top national accounting and advisory firm. He joins Marcum as an Assurance Services partner in the Firm’s Irvine, California, office and will serve as leader of Marcum’s construction services practice for the California region. Marcum is one of the leading construction accounting firms in the U.S., with California offices currently in Irvine, Los Angeles, San Francisco, and San Jose.
Mr. Hennagin has more than 30 years of experience in audit, accounting, tax planning, and business consulting, with a specialization in the construction industry. He has served as president of the Construction Industry CPAs/Consultants Association (CICPAC), national Tax Committee member of the Associated Builders and Contractors (ABC), and director of the American Subcontractors Association. He holds a Masters of Science in Taxation from Golden Gate University and a bachelors in Business Administration from California State University.
“The integration of Warren’s construction practice is part of our ongoing investment in Marcum’s national construction industry group. Warren will play a strategic role on the leadership team as we continue to grow construction services in the California region,” said Jeffrey M. Weiner, Marcum’s managing partner.
“Warren Hennagin is an outstanding new addition to Marcum’s national construction practice. He brings a significant construction client portfolio to Marcum, and his broad industry leadership experience and highly nuanced expertise will be an important new asset in our construction services group,” said Joseph Natarelli, national partner-in-charge of Construction Services.
“Warren will be instrumental in growing our construction services practice in Marcum’s California region,” said Philip J. Wilson, California partner-in-charge. “Most sectors of the construction industry are beginning to strengthen with the general economy, although project margins have improved only marginally. The theme for the industry for the foreseeable future will continue to be a severe shortage of labor,” Mr. Hennagin said.
Marcum LLP's Construction Industry Practice group provides audit, consulting and taxation services to clients ranging from start-ups to multi-billion-dollar enterprises. The group's professionals, among the country’s foremost experts in construction accounting, are frequent industry authors and speakers and serve as technical reviewers for the AICPA’s construction audit and taxation guides. The group publishes the quarterly Marcum Commercial Construction Index of economic trends in the industry, and the annual Marcum JOLT Survey Analysis, a discussion of construction employment trends. For more information, visit www.marcumllp.com.
Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation, with offices in major business markets throughout the U.S., as well as Grand Cayman, China and Ireland. Headquartered in New York City, Marcum provides a full spectrum of traditional tax, accounting and assurance services; advisory, valuation and litigation support; and an extensive range of specialty and niche industry practices. The Firm serves both privately held and publicly traded companies, as well as high net worth individuals, private equity funds and hedge funds, with a focus on middle-market companies and closely held family businesses. Marcum is a member of the Marcum Group, an organization providing a comprehensive array of professional services." target="_blank">Warren Hennagin Named California Construction Leader at Marcum LLP
Warren Hennagin, CPA, MST, CCIFP, CGMA, has merged his construction accounting practice into Marcum LLP, a top national accounting and advisory firm ......
Lutz. The combined firm will retain the Lutz name.
The McDermott & Miller offices located in Hastings, Grand Island and Omaha, along with their eight shareholders and over 40 personnel, will be joining the Lutz team. McDermott & Miller professionals will strengthen Lutz’s commitment to the agriculture industry as well as bring additional non-profit and tax resources.
McDermott & Miller is the leading CPA firm in Central Nebraska serving clients throughout the state. The addition of their offices will provide Lutz an expanded presence in a number of Nebraska’s largest communities.
Please be assured that, first and foremost, the firm's top priority is to continue to provide our client's with consistent, high-quality service and support. It is anticipated that no major impact to clients as a result of this transaction, other than expanded geographic locations of Lutz offices and added resources.
To learn more about the transaction, visit www.lutz.us/FAQ.
Since its founding in 1980, Lutz has grown to be Nebraska’s largest locally owned CPA firm with locations in Omaha and Lincoln. Lutz offers a full range of business solutions including Accounting, Technology, Mergers & Acquisitions, Talent and Wealth Management/Financial Planning.
About McDermott & Miller
Established in 1973, McDermott & Miller is the leading CPA firm in Central Nebraska offering traditional areas of accounting and taxation along with various other specialty offerings. The current offices located in Hastings, Grand Island and Omaha will join Lutz on May 1, 2017, under the Lutz name. The Hastings and Grand Island offices will remain in their current location and the Omaha office will join the Lutz location after May 1, 2017.
The Kearney office of McDermott & Miller will not be part of the transaction as their shareholder group has chosen to stay independent and will operate under a new firm name.
" target="_blank">LUTZ and McDermott & Miller Join Forces
Nebraska - May 1, 2017 - Effective immediately, selected offices of accounting firm McDermott & Miller will be joining forces with CICPAC member firm, Lutz. [...]