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They are extremely cheap (errr cost effective). I wouldn't use them with a plan that small, as they will get lost in the shuffle from my experience. It's not that the plan isn't great, just Vanguard plays with the BIG BOYS.... Sweet spot is probably $50 million plus if I were to guess?
Thanks for the input. Since my post I did some research, and found that you are correct, their expense ratios are low. I also found that their TPA is not cheap. For this size of plan, I think fidelity or Oppenheimer are a better fit.
What city do you work in? I suggest looking at Alliance Benefit Group. They have their own RIA but they share fees with other RIA’s. Their largest custodian partners are Schwab and Fidelity. All institutional share pricing. I have plans with them from $1 million to $50 million.
Vanguard plays in the <$20MM space but you have to use the Vanguard/Ascensus program. It’s really an Ascensus plan with Vanguard marketing. VG does keep close tabs on Ascensus, though, so it’s not a bad plan, just not fully VG
Consider a MEP
Vanguard might not be interested in a plan of that size. I believe they want 40 mil and above plans
Look at American funds. That size would be their sweet spot. They also have great support for you and the plan.