How to Save Thousands on Your Company’s 401(k) Plan—Starting Now

Offering a 401(k) plan is one of the most effective ways to attract and retain top talent. But for many business owners, the ongoing administrative costs can feel like a slow leak in an otherwise well-inflated tire—quietly draining resources without a clear understanding of where the money is going.

The good news? You can reduce 401(k) administrative costs without sacrificing plan quality or employee satisfaction.

At Maxus Plan Solutions, we specialize in helping business owners like you maximize the value of your retirement plans. In this article, we’ll walk you through cost-saving strategies, practical steps, and tools to give you greater control over your plan’s financial health.

What Are “Administrative Costs” in a 401(k) Plan?

Before identifying savings opportunities, it’s important to define what you’re paying for. Administrative costs refer to the day-to-day expenses of operating your retirement plan, including:

• Recordkeeping and account maintenance
• Compliance testing and government filings
• Participant communication and education
• Custodial services and legal support
• Technology platforms and transaction processing

Some fees are fixed, while others scale with the size of your plan or number of participants. Many business owners unknowingly overpay—often because plan fees are outdated, poorly disclosed, or buried in complex documentation.

Hidden Costs Can Add Up Quietly

Many employers don’t realize the extent of their spending until they take a closer look. Because administrative fees are often deducted directly from plan assets, both employers and employees may be paying more than necessary—without even noticing.

This is where an expert partner like Maxus Plan Solutions can step in to conduct a thorough fee analysis and benchmark your plan against the market.

5 Ways to Cut Your 401(k) Administrative Costs

Ready to optimize your plan’s expenses? These five strategies can help reduce administrative costs without reducing value.

1. Benchmark and Renegotiate Provider Fees

If you haven’t reviewed or renegotiated your plan provider’s fees in the last 2–3 years, you could be overpaying.

Take these steps:

• Request a fee disclosure report from your provider.
• Compare costs against industry benchmarks.
• Work with an advisor (like Maxus) to identify savings opportunities

Even small reductions in basis points can lead to thousands in long-term savings.

2. Simplify Plan Design

Complex plans often come with higher administrative costs. Features such as multiple vesting schedules, tiered matching, or an overly broad investment menu increase workload and risk.

Consider simplifying your plan by:

• Standardizing eligibility and vesting rules
• Limiting investment options to high-quality, low-cost funds
• Implementing safe harbor provisions to reduce compliance testing

A streamlined plan is easier to manage and induces more employee participation.

3. Upgrade to Modern technology Platforms

If your plan still uses outdated software or manual processes, you’re likely overspending on labor and administration.

Modern 401(k) platforms offer:

• Automated payroll integration
• Real-time reporting
• Employee self-service dashbords
• Built-in compliance alerts

These features reduce errors, save time, and cut costs. At Maxus, we partner with industry-leading platforms to ensure efficiency and compliance.

4. Evaluate Investment Fees

While administrative fees are important, investment costs can quietly erode employee savings. High-cost mutual funds and outdated share classes add unnecessary expense.

Switching to low-cost index funds or institutional share classes can significantly improve plan efficiency and participant outcomes.

Maxus helps clients regularly review investment lineups and ensure all costs are transparent and competitive.

Cutting Costs ≠ Cutting Corners

Reducing administrative costs isn’t about doing less for your employees—it’s about doing more with less. By reviewing your plan, simplifying its structure, and negotiating smarter, you can improve performance while reducing expenses.

Why Maxus Plan Solutions?

Maxus Plan Solutions helps employers optimize their retirement plans through:

• Customized plan design
• Detailed fee benchmarking and analysis
• Supporting your Financial Advisor in their educational efforts
• Employee education and engagement tools provided by your investment recordkeeper

Whether you’re exploring a different plan solution or simply trying to rein in costs, we bring clarity, savings, and strategic insight.

Ready to Reduce Your 401(k) Plan?

Don’t let hidden fees erode your retirement benefits. Let’s build a smarter, more cost-effective plan—together.

👉 Contact Maxus Plan Solutions today to schedule a consultation and find out how much you could be saving.