RecordkeeperDirect® | American Funds

American Funds Makes Small-Business 401(k) Plans Simple and Competitively Priced.

RecordkeeperDirect is a retirement plan solution designed specifically for smaller businesses.

 

This high-quality program:

  • Is competitively priced
  • Makes plans simple to operate and maintain
  • Offers a full complement of American Funds investments
  • Provides customized plan administration from a third-party administrator (TPA)

Save Your Clients Money

The American Funds fixed-dollar approach to plan pricing is designed to be low-cost and transparent and to provide better overall value.

A Closer Look at RecordkeeperDirect’s Pricing (effective January 1, 2018)

Step 1: Determine the annual recordkeeping fees based on plan assets and share class.

Step 2: Choose a share class to determine if the level of compensation meets the plan’s service requirements.

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Advisor and TPA compensation, if any, are included in the average expense ratio.

1 There is a one-time RecordkeeperDirect plan installation fee of $500 for startup plans; waived for R-2 only if plan assets reach $100,000 as of the last day of the plan’s first recordkeeping quarter. No charge for takeover plans. The $20 per-participant fee will be deducted from participant accounts.
Available as of January 1, 2018
3 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.
4 The average expense ratio shown for each RecordkeeperDirect share class is for all funded investments and is weighted, based on average daily net assets in the program as of 12/31/2016; however the weighted average expense ratio for the R-5E share class, which will be available as of January 1, 2018, is based on program assets invested in the American Funds investment options in all share classes. Accordingly, more weight is given to funds with more assets. Actual expenses ratios, as reported in each fund's prospectus available at the time of publication, range from 0.69% to 2.03% for R-2; 0.49% to 1.61% for R-3; 0.45% to 1.29% for R-4; 0.46% to 1.14% for R-5E; and 0.25% to 0.93% for R-6.


Build a Stronger Plan Menu

With American Funds, your clients can start with a target date series that advisors have voted “best-in-class”5. Then they can choose a portfolio from the American Funds.

  • Sponsors can reduce their fiduciary liability — by meeting 404(c) requirements — when creating a well-diversified plan menu by selecting a target date series fund or a portfolio from up to 20 of the American Funds.
  • Although the American Funds Target Date Retirement Series is available on many other providers' platforms, it is likely to be less expensive in an American Funds retirement plan solution.

American Funds Target Date Retirement Series

Voted “best-in-class”5 by financial professionals.

American Funds Portfolio Series 

Offers “the most widely used [funds] in DC plans”6.

Learn more about our target date series and portfolio series:

 American Funds Target Date Retirement Series

 American Funds Portfolio 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.

TPA Assistance and Information

(800) 421-9900


Trust a Proven Leader

American Funds has earned high marks for advisor support and plan sponsor service5,7 — all of which can make your job easier and your practice more effective.

A retirement plan solution that can benefit you and your clients.


Advisor Benefits
Personalized Sales Support

Plan Sponsor Benefits
Reliable Ongoing Service

Participant Benefits
Improved Participant Outcomes
X

Get personalized sales support to build their retirement plan business

  • An experienced sales team, comprising specialists who’ve taken the time to understand their business needs, can help them win and retain more plans.
  • A comprehensive advisor website makes it easier to offer more value-added services to clients. 
X

Rely on ongoing service to help retain satisfied clients

  • A knowledgeable in-house support service team addresses and resolves issues quickly.
  • Fiduciary support is available for plan sponsors who want help selecting and monitoring investments with optional ERISA 3(21) and 3(38) investment services through Wilshire Associates Incorporated (Wilshire®)8.
  • Learn more about the online features that will help plan sponsors manage their plans on the plan sponsor demo site.
X

Help improve participant outcomes with enrollment and education support

  • A comprehensive educational program, Investing for Life, helps guide participants through every stage of retirement planning and investing.
  • Learn about the online tools and resources available to plan participants on the participant demo site.
Advisor Benefits
Personalized Sales Support

Get personalized sales support to build their retirement plan business

  • An experienced sales team, comprising specialists who’ve taken the time to understand their business needs, can help them win and retain more plans.
  • A comprehensive advisor website makes it easier to offer more value-added services to clients. 
Plan Sponsor Benefits
Reliable Ongoing Service

Rely on ongoing service to help retain satisfied clients

  • A knowledgeable in-house support service team addresses and resolves issues quickly.
  • Fiduciary support is available for plan sponsors who want help selecting and monitoring investments with optional ERISA 3(21) and 3(38) investment services through Wilshire Associates Incorporated (Wilshire®)8.
  • Learn more about the online features that will help plan sponsors manage their plans on the plan sponsor demo site.
Participant Benefits
Improved Participant Outcomes

Help improve participant outcomes with enrollment and education support

  • A comprehensive educational program, Investing for Life, helps guide participants through every stage of retirement planning and investing.
  • Learn about the online tools and resources available to plan participants on the participant demo site.

What’s Next

Get a Preliminary Fee Quote

Use Price-It Tool℠ to get an estimate of plan costs.

5 Market Strategies International, Cogent Wealth Reports, Retirement Plan Advisor Trends™, September 2016. Methodology: There were 508 respondents to a web survey conducted from August 16 to August 24, 2016. The respondents consisted of financial advisors managing defined contribution plans.
6 Pensions & Investments, “Largest DC Managers By Total Assets: 2016,” August 2016
7 Brightwork Partners, Retirement Services Intermediaries 10, May 2016
8 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 Associates Incorporated, 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 funds are managed for investors on a projected retirement date time frame, the funds' allocation strategy does not guarantee that investors' retirement goals will be met. The target date is the year in which an investor is assumed to retire and begin taking withdrawals. American Funds investment professionals manage the target date fund's portfolio, moving it from a more growth-oriented strategy to a more income-oriented focus as the fund gets closer to its target date. Investment professionals continue to manage each fund for 30 years after it reaches its target date. 

Content contained herein is not intended to serve as impartial investment or fiduciary advice. The content has been developed by Capital Group, which receives fees for managing, distributing and/or servicing its investments.

Information provided on this website is intended for use by financial advisors with persons who are eligible to purchase U.S.-registered mutual funds.