Best 401k Providers for Small Businesses in 2025: Top 10

Offering a 401(k) plan can be a powerful way for a small business to attract top talent, unlock valuable tax incentives, and build long-term employee loyalty. At the same time, sponsors must navigate ERISA’s fiduciary requirements, manage administrative tasks, and absorb start-up and ongoing costs.

Two key considerations can lighten this load: the Small Employer Retirement Plan Startup Tax Credit, which allows eligible employers with 100 or fewer employees to claim 50% of qualified set-up costs (up to $5,000 per year for three years) against their federal tax bill; and a firm understanding of ERISA fiduciary responsibilities, from the duty of prudence and diversification to avoiding prohibited transactions.

This article compares the ten best 401(k) providers for small businesses in 2025, evaluated on cost transparency, administrative ease, breadth of investment options, platform usability, quality of support, and fiduciary assistance. First up is Merrill Small Business 401(k), which pairs in-branch advisory expertise with transparent pricing.

1. Merrill Small Business 401(k): Comprehensive Advisory Support at Competitive Fees

Merrill Small Business 401(k)
Merrill, part of Bank of America’s wealth management arm, brings a full advisory experience to the small-business 401(k) market. Sponsors benefit from a baked-in advisor model, in-branch consultations, and a broad investment lineup—all backed by transparent pricing.

Fees & Pricing

Employers pay a one-time setup fee of $390 followed by $90 per month in plan administration. Participants incur a 0.52% asset-based fee annually plus a $4 monthly administrative charge. Compared to industry averages—where setup fees often exceed $1,000 and monthly costs can reach $150—Merrill’s structure balances affordability with high-touch service.

Plan Features & Employer Match Options

• Plan types: Traditional 401(k), Roth 401(k) and loan provisions for eligible participants.
• Matching flexibility: Sponsors can choose a fixed match (e.g., 50% of deferrals up to 6% of salary) or set up profit-sharing contributions.
• Vesting schedules: Options include graded, cliff or immediate vesting, allowing alignment with your retention goals.

Investment & Advisory Services

Merrill offers:

• Third-party managed portfolios and model strategies that auto-rebalance.
• Access to thousands of mutual funds, ETFs and target-date products.
• In-person and virtual advisor meetings at Bank of America branches nationwide, ensuring hands-on guidance for both sponsors and employees.

Administrative Tools & Ease of Implementation

• A sponsor portal with step-by-step enrollment guides, compliance checklists and customizable reports.
• Seamless integration with major payroll systems to eliminate duplicate data entry.
• Typical setup timeline of four to six weeks from plan design to employee kickoff.

Ideal For

Small businesses that value face-to-face advisory support and want to consolidate their retirement plan with Bank of America’s broader financial services.

Pros & Cons

Pros:

• Transparent, predictable pricing
• Dedicated in-branch and virtual advisor access
• Robust fund lineup with auto-rebalancing

Cons:

• Participant fees higher than flat-fee, low-cost alternatives
• Full benefit suite best leveraged by existing Bank of America customers

2. Vanguard 401(k): Low-Cost Index Funds with Extensive Fund Line-Up

Vanguard 401(k)
Vanguard pioneered low-cost passive investing, and its small-business 401(k) offering lives up to that reputation. By centering on index mutual funds, ETFs and target-date portfolios, Vanguard keeps fees minimal while delivering a massive fund catalog that scales with plan size.

Fees & Pricing

For smaller plans (generally under $1 million), Vanguard waives the annual sponsor fee, leaving participants to pay only the underlying fund expense ratios—some as low as 0.03%. As plan assets grow, a sliding scale may apply, and sponsors often engage a third-party administrator (TPA) to handle ERISA testing and compliance, which brings its own fees. There’s no flat per-participant charge, but custodial minimums and TPA costs should be factored into your budget.

Investment Options

• Core lineup: Vanguard index funds covering U.S. and international equities, bonds and balanced strategies
• ETFs: Low-cost exchange-traded funds mirroring the most popular index funds
• Target-date funds: “Set-and-forget” portfolios that gradually shift toward income-oriented allocations
• Expanded menu: Once your plan hits $2 million in assets, you unlock access to roughly 12,000 non-Vanguard mutual funds and ETFs
• Self-Directed Brokerage Account (SDBA): Participants can trade individual securities or niche funds alongside core options

Platform & Self-Directed Brokerage

Vanguard’s online portal and mobile app focus on clarity. Employees can change deferral rates, swap investments and view personalized retirement projections. The platform houses robust research tools—fund comparison charts, risk-analysis modules and market commentary—to help decision-makers stay informed. The SDBA integrates seamlessly, so seasoned savers enjoy full trading functionality without leaving Vanguard’s ecosystem.

Administration & Setup

Getting started involves:

1. Completing Vanguard’s online plan-establishment questionnaire
2. Selecting your investment menu and plan design
3. Signing and returning plan documents
4. Integrating with your payroll provider or TPA
   There’s no hard minimum for plan launch, though very small balances may trigger quarterly activity requirements. From paperwork to first payroll file, most plans go live in six to eight weeks.

Best For

Businesses that prioritize ultra-low investment costs, embrace passive strategies and don’t need in-branch advisory services. Pairing Vanguard’s platform with a TPA—or leveraging Summit Consulting Group for 3(16) fiduciary oversight—rounds out the solution.

Pros & Cons

Pros:

• Industry-leading expense ratios on core funds
• Nearly limitless fund choice when assets grow
• Clean, participant-friendly digital tools and integrated SDBA

Cons:

• Limited in-house administrative support—often requires a separate TPA
• No face-to-face advisory network for sponsors or participants

3. Fidelity Investments 401(k): Robust Platform with Comprehensive Support

Fidelity Investments 401(k)
Fidelity pairs deep industry expertise with an end-to-end service model that covers everything from initial plan design to ongoing participant education. Whether you’re just spinning up your first retirement plan or consolidating existing Fidelity accounts, this solution provides the technology and guidance to stay compliant and keep employees engaged.

Fees & Pricing

Fidelity’s pricing breaks down into two buckets—employer charges and participant costs—to give you clarity on what you’re paying for service versus what employees cover for accessing investments.

• Employer fees: A one-time $500 setup charge, then $300 per quarter for plan administration.
• Participant fees: $25 per quarter plus an asset-based fee of 0.125% per quarter (0.5% annualized).
  While these figures sit above the bare-bones, flat-fee models, they include access to Fidelity’s arsenal of advisory tools and compliance support, which many small businesses find well worth the investment.

Investment & Fund Choices

Fidelity is renowned for the sheer breadth of its lineup. Your plan can offer:

• Thousands of mutual funds, spanning actively managed strategies, index funds and sector-specific products.
• A full suite of Fidelity target-date funds, designed to automatically adjust risk as participants near retirement.
• An optional brokerage window, empowering seasoned savers to trade stocks, ETFs and niche funds beyond the core menu.
  This flexibility helps meet the risk-tolerance and diversification requirements that ERISA mandates, while catering to employees who prefer hands-on control.

Plan Administration & Advisory

Behind the scenes, an experienced Fidelity plan consultant works with you to craft a design that fits your objectives—whether that’s maximizing tax credits, optimizing match formulas or tightening vesting schedules. Key features include:

• An online plan-design tool that simulates costs and funding scenarios before you commit.
• Continuous compliance checks for nondiscrimination testing, Form 5500 preparation and participant communication deadlines.
• A dedicated service team available by phone or email to troubleshoot any administrative bumps.

Participant Experience & Tools

Employees enjoy a polished, user-friendly interface—both web and mobile—that makes it simple to adjust contributions, swap funds and track progress toward their retirement goals. Fidelity’s portal also provides:

• Real-time dashboards and customizable reports, giving participants instant visibility into balances, performance and projected income.
• Interactive retirement calculators and educational content, from videos on basic investing principles to articles on market trends.
• Push notifications for key milestones, such as auto-escalation increases or enrollment deadlines.

Best For

Mid-sized small businesses that value a fully integrated retirement partner, especially those already using Fidelity for payroll or recordkeeping. If you need hands-on advisory support and a diverse investment menu—without juggling multiple vendors—Fidelity delivers a cohesive experience.

Pros & Cons

Pros:

• Extensive investment universe with both managed and self-directed options.
• High-touch support from setup through ongoing plan governance.
• Rich participant education and digital tools that drive engagement.

Cons:

• Fees are higher than many flat-fee providers, which may challenge very small budgets.
• The sheer number of options and features can feel overwhelming to micro-businesses or sponsors new to retirement plans.

4. ADP 401(k): Integrated Payroll and Retirement Services for Streamlined Administration

ADP 401(k)
ADP’s edge lies in its seamless combination of payroll, HR and retirement plan administration. With data flowing directly from payroll to your 401(k), you avoid manual errors and ensure compliance—all within a single platform. Whether you’re just launching a plan or looking to streamline multiple vendors, ADP scales its service tiers to match your needs.

Fees & Pricing

• Asset-based fee of 0.1% per month (minimum $30).
• Additional per-participant fees apply by service tier (e.g., managed accounts, wellness tools).
• Transparent, itemized invoicing that adjusts as your headcount and plan assets grow.

Plan Kits & Enrollment Support

• Automatic enrollment and auto-escalation features to boost participation.
• Three service levels (Standard, Plus, Premium), each including a fiduciary advisor at the entry tier.
• Customizable enrollment kits, on-site or virtual kickoffs, and employee communications templates.

Integration with Payroll & HR

• Real-time sync of deferrals, matches and loan repayments directly from ADP Payroll.
• Unified dashboard with compliance alerts for contribution limits, eligibility and nondiscrimination testing.
• Single-vendor relationship for payroll, HR and retirement reduces administrative overhead.

Fund Selection & Participant Options

• Access to 13,000+ mutual funds and ETFs, plus managed account solutions for hands-off investing.
• Employee portal featuring educational resources, calculators and goal-tracking tools.
• Mobile app for on-the-go balance checks, fund swaps and deferral changes.

Best For

Businesses already on ADP payroll seeking to consolidate retirement administration—especially those that prioritize real-time accuracy, scalable service tiers and built-in fiduciary support among the best 401k providers.

Pros & Cons

Pros:

• Seamless payroll integration slashes reconciliation time
• Scalable tiers with fiduciary advisor included
• Vast fund lineup and managed account options

Cons:

• Asset-based fees rise as plan assets grow
• Optional features add per-participant costs
• Limited in-person advisory compared to bank-affiliated providers

5. Betterment at Work 401(k): Automated Investing with Tiered Service Levels

Betterment at Work 401(k)
Betterment at Work brings robo-advisor simplicity to small-business retirement plans. By leaning on automated algorithms and behavioral finance nudges, it helps sponsors boost participation and keep investments on track—without a heavy administrative lift.

Fees & Pricing

Betterment’s transparent fee structure breaks down into setup, service tiers and per-employee charges:

• One-time setup fee: $500
• Annual package fees:
  • Essential: $1,200
  • Pro: $1,800
  • Flagship: $3,500
• Per-employee monthly fee: $5–$8 (depending on tier)
• Participant asset-based fee: 0.25% of assets (employer can opt to cover this)

This model gives you a predictable invoice each year, with a clear path to upgrade as your headcount grows or your needs become more sophisticated.

Portfolio Options

Rather than a long menu of mutual funds, Betterment offers a handful of goal-driven portfolios designed for diversification and automatic upkeep:

• Core Portfolio: Broad market ETFs covering U.S. stocks, international equities, and bonds
• Social Impact Portfolio: Tilts toward companies with strong environmental, social and governance (ESG) scores
• Custom allocations: Mix your own percentages among the core and impact themes
• Behind the scenes: Auto-rebalancing and tax-loss harvesting aim to keep each account aligned with its target risk profile

Auto-Enrollment & Behavioral Tools

To address the biggest hurdle—getting employees to opt in—Betterment leans on behavioral finance:

• Opt-out enrollment model with pre-set default contribution rates
• Automatic annual deferral increases, so savings climb without a second thought
• In-app nudges and email reminders that encourage employees to check their goals and adjust savings

These features can lift participation by 10–15%, according to industry research, and require almost no ongoing effort from sponsors.

Financial Coaching & Support

Betterment layers in human expertise alongside its algorithms:

• Pro tier includes digital advice for employees who want guided portfolio reviews
• Flagship tier adds one-on-one coaching sessions, giving participants the chance to ask specific questions
• Essential tier still provides robust FAQ libraries, webinars and on-demand educational videos

This blend of automated advice and real live support helps demystify investing for employees of every experience level.

Best For

Tech-savvy small businesses and startups that lack dedicated HR or benefits staff but want an attractive, modern 401(k) plan. If you’re comfortable with a largely digital experience and prefer a flat, transparent cost structure, Betterment at Work fits the bill.

Pros & Cons

Pros:

• Crystal-clear pricing and easy budgeting
• Hands-off portfolio management with smart rebalancing
• Behavioral features—auto-enrollment and escalation—drive participation

Cons:

• Limited fund selection compared to full-service providers
• Higher per-employee costs in small headcount scenarios
• No in-branch advisory for sponsors or participants

6. Charles Schwab 401(k): Investor-Friendly Platform with Flexible Services

Charles Schwab 401(k)
Charles Schwab brings its retail-investor savvy to the small-business 401(k) arena, delivering a flexible, highly customizable plan backed by a trusted name. Whether your team wants hands-off managed portfolios or the freedom to trade individual securities, Schwab’s menu caters to a wide range of savers—while sponsors benefit from a suite of design options and support tools.

Fees & Pricing

Unlike flat-fee models, Schwab’s pricing is tailored to your plan’s size, features and service level. Sponsors receive a custom quote that reflects factors like employee headcount, payroll frequency and optional plan add-ons (auto-enrollment, managed accounts, etc.). Participant costs depend on the funds they choose—index fund expense ratios can be under 0.05%, while actively managed options carry higher fees. If you offer a Self-Directed Brokerage Account (SDBA), employees pay standard Schwab trading commissions for stocks and ETFs.

Investment Selection

Schwab’s strength lies in choice. Your plan can include:

• Managed portfolios that rebalance automatically based on risk-targeted models.
• Target-date series spanning multiple retirement horizons, shifting allocations over time.
• Commission-free ETFs and low-expense index funds for core equity and bond exposure.
• Self-Directed Brokerage Account (SDBA) giving participants the option to trade individual stocks, bonds or niche funds.
• Company stock integration, if you choose to make employer shares part of the lineup.

Advisory & Participant Support

Schwab offers both digital and human touchpoints. Participants can tap into:

• Phone and online chat with Schwab representatives, available nearly round-the-clock.
• In-branch consultations at over 300 Schwab Investor Centers for one-on-one planning sessions.
• Webinars and workshops on topics ranging from basic asset allocation to advanced retirement projections.
  Sponsors receive a dedicated service team to guide plan governance, compliance deadlines and Form 5500 filings.

Plan Customization & Services

From matching formulas to vesting timing, Schwab gives sponsors broad design freedom:

• Match designs (dollar-for-dollar, tiered match, profit-sharing overlays) to align with your budget and retention goals.
• Vesting schedules (immediate, graded or cliff) that help reinforce long-term commitment.
• Auto-enrollment and auto-escalation modules to boost participation and gradually increase deferral rates.
• Loan and hardship provision management handled through Schwab’s administrative platform, streamlining participant requests.

Best For

Organizations that want a blend of passive and active investment choices, plus both digital and face-to-face support. Schwab suits employers who don’t mind working through a custom quote process to unlock a highly flexible, investor-centric plan.

Pros & Cons

Pros:

• Broad investment menu (SDBA, target-date funds, managed portfolios)
• Personalized support via phone, online and in-branch
• Robust customization for matches, vesting and enrollment features

Cons:

• Fee structure can be complex—requires careful review of the customized proposal
• Sponsors and participants may need extra guidance to navigate the SDBA’s trading features
• In-branch advisory is only available in select markets, adding potential travel for some employees

7. Employee Fiduciary: Transparent Low-Cost 401(k) Designed for Small Employers

Employee Fiduciary 401(k)
Employee Fiduciary positions itself as a straightforward, budget-friendly 401(k) provider tailored to the needs of very small companies. With a lean, flat-fee approach and built-in fiduciary safeguards, this solution strips away unnecessary complexity while ensuring your plan stays compliant and your employees have access to a wide array of investment choices.

Fees & Pricing

Employee Fiduciary’s pricing model is remarkably simple:

• Annual administrative fee of $1,500 for plans with up to 30 participants
• Asset-based charge of 0.08% on total plan assets
• $500 minimum for initial setup

Together, these components deliver total plan costs that often fall below one-third of what traditional TPAs charge, making it one of the most cost-effective options for micro-businesses.

Investment Choices

Rather than limiting you to a handful of proprietary funds, Employee Fiduciary grants access to:

• 377 mutual fund families, including low-cost leaders like Vanguard
• All major ETFs through a TD Ameritrade brokerage window
• Pre-built model portfolios that can serve as default lineups or be tailored to your team’s preferences

This breadth of options supports ERISA’s diversification requirement without sacrificing cost efficiency.

Plan Administration & Compliance Support

On the compliance front, Employee Fiduciary provides essential administrative services:

• Preparation of Form 5500 and participant fee disclosures
• Annual report summaries to back up audit and review processes
• Sample fiduciary process documentation and best-practice checklists, helping you adhere to ERISA’s recordkeeping mandates

You’ll spend less time wrestling with paperwork and more time focusing on your core business.

Fiduciary Management & Best Practices

Recognizing that fiduciary oversight can be the trickiest part of sponsoring a retirement plan, Employee Fiduciary offers:

• A 3(16) administrative fiduciary service to assume day-to-day compliance duties
• A 3(38) investment management option, handling fund selection and ongoing monitoring
• Clear guidance on prohibited transactions and ERISA’s duty of prudence, so you can sponsor your plan with confidence

Best For

Micro-businesses and startups with lean budgets that need a turnkey, low-cost 401(k) solution. If you want robust compliance support and broad investment access—without a large TPA price tag—Employee Fiduciary is an excellent fit.

Pros & Cons

Pros:

• Industry-low fees with transparent, flat-rate billing
• Full ERISA compliance support, including Form 5500 and fiduciary documentation
• Extensive fund menu and ETF access via a convenient brokerage window

Cons:

• No face-to-face advisory; all service is delivered digitally
• Platform interface is functional but lacks some of the polish of larger TPA portals

8. Paychex 401(k): Full-Service Payroll and Retirement Integration

Paychex brings together payroll, HR and retirement services under one roof, making it a natural choice for businesses that want to minimize vendor management and streamline processes. By bundling your payroll and 401(k) administration, Paychex reduces manual data entry, cuts down on reconciliation errors and provides a single point of contact for compliance and reporting needs. Whether you’re launching a new plan or migrating an existing one, its all-in-one platform can accelerate setup and simplify day-to-day governance.

Fees & Pricing

Paychex’s pricing is flexible, with costs tailored to your number of employees, pay cycles and selected service bundle. Employers can typically access discounted rates when combining payroll and retirement services. While there isn’t a public rate card, typical elements include:

• A base administrative fee that scales with headcount
• Per-pay-period charges, decreasing as payroll volume rises
• Optional bundled pricing that offers deeper discounts for small businesses using multiple Paychex solutions

This structure rewards growth: as your workforce expands, the per-employee and per-pay-period fees generally decline, making Paychex cost-competitive for companies looking to consolidate back office functions.

Plan Design Options

Paychex supports a variety of plan types and features, so sponsors can align benefits with their goals:

• Traditional and Roth 401(k) plans for pre-tax deferrals or after-tax contributions
• SIMPLE 401(k) for firms with 100 or fewer employees, exempt from annual nondiscrimination testing
• Profit-sharing modules that allow discretionary employer contributions
• Customizable vesting schedules (immediate, graded or cliff) and match formulas (dollar-for-dollar, tiered, etc.)

These options help businesses maximize tax credits, incentivize participation and reward long-term employees.

Seamless Payroll Integration & Recordkeeping

At the heart of Paychex’s value proposition is its end-to-end integration:

• Deferrals, matches and loan repayments flow automatically from payroll to recordkeeping
• Real-time dashboards display current contribution totals and eligibility metrics
• Built-in compliance alerts cover IRS limits, ERISA testing and Form 5500 deadlines
• Electronic filing support for government reports and participant disclosures

By centralizing HR, payroll and retirement, sponsors gain confidence that their plan remains compliant without juggling spreadsheets or multiple portals.

Dedicated Service Team & Tools

Paychex combines robust technology with personalized support:

• A dedicated client service team guides you from onboarding through ongoing maintenance
• The sponsor portal offers plan analytics, custom reporting and proactive action alerts
• Employees access a mobile-friendly site and app to view balances, update deferrals and explore educational content
• Live support via phone, chat or email ensures both sponsors and participants get timely answers

These resources help maintain high participation rates and a positive user experience.

Best For

Very small businesses that already use or plan to adopt Paychex payroll services will extract the most value from a bundled solution. Its scalable pricing and single-vendor convenience are especially appealing to employers seeking a simplified, consolidated back-office.

Pros & Cons

Pros:

• Bundled pricing rewards employers combining payroll, HR and retirement
• Single-vendor relationship reduces administrative overhead and data discrepancies
• Comprehensive compliance and reporting support, including Form 5500 assistance

Cons:

• May not be cost-effective if you only need retirement plan services
• Less attractive for firms tied to a different payroll provider but seeking standalone recordkeeping
• Custom quotes require detailed proposals to compare upfront costs accurately

9. T. Rowe Price 401(k): Long-Standing Provider with No-Load Mutual Funds

T. Rowe Price has been managing retirement assets since 1937, building a reputation for high-quality mutual funds and client-focused service. Their small-business 401(k) plans combine a deep lineup of proprietary no-load funds with flexible plan designs and dedicated educational support—making them a solid choice for employers who want to emphasize disciplined, fund-centric investing.

Fees & Pricing

Plan sponsor fees with T. Rowe Price vary based on the size of your plan and selected service bundle. Unlike many recordkeepers, their mutual funds carry no front- or back-end sales loads, though each fund has its own expense ratio. Participant fees typically depend on total plan assets and the specific fund elections; employers should request a customized quote to understand sponsor charges and fund-level expenses.

Investment Fund Line-Up

• 90+ proprietary no-load mutual funds and common trusts covering U.S. equity, international equity, fixed income and hybrid strategies
• Access to 5,400+ non-proprietary mutual funds for expanded diversification
• Specialized series including target-date funds, asset allocation portfolios and money-market options
• Optional self-directed brokerage window for participants who wish to trade outside the core lineup

Advisory & Plan Education

T. Rowe Price places a strong emphasis on participant engagement and financial literacy:

• On-site and virtual retirement readiness workshops led by their specialists
• A digital resource library with articles, videos and interactive tools on topics like asset allocation and retirement income projections
• Quarterly webinars and live Q&A sessions to keep sponsors and employees informed of market developments and plan best practices

Plan Flexibility & Nonprofit Plans

Beyond traditional and Roth 401(k) designs, T. Rowe Price supports:

• 403(b) retirement plans for tax-exempt entities such as schools, hospitals and charities
• Custom employer-match formulas, profit-sharing modules and vesting schedules (graded, cliff or immediate)
• Loan and hardship withdrawal provisions managed through their streamlined administrative platform

Best For

Employers who value a deep, no-load fund menu, robust educational programming and the ability to serve both for-profit and nonprofit workforces under a single retirement provider.

Pros & Cons

Pros:

• Industry-trusted, no-load mutual funds with a broad proprietary lineup
• Extensive participant education and engagement resources
• Expertise in both 401(k) and 403(b) plan administration

Cons:

• Fee structure varies by plan size—smaller plans may face higher per-participant costs
• Requires a custom quote process to compare against flat-fee competitors
• Minimal face-to-face advisory outside of major metropolitan areas

10. 401GO: Simple, Accessible 401(k) for Small to Medium Businesses

401GO 401(k)
401GO delivers a modern, tech-first 401(k) solution aimed squarely at small and mid-sized employers. By combining flat-fee pricing, automated plan features and an easy-to-navigate platform, 401GO removes the guesswork from retirement-plan administration.

Fees & Pricing

• Tiered flat-fee model: a fixed monthly subscription plus a per-participant charge
• No asset-based fees or hidden expenses—one predictable invoice covers administration, compliance reporting and recordkeeping

Plan Features & Automation

• Auto-enrollment and automatic deferral-escalation help maximize participation without extra paperwork
• Roth 401(k) option available alongside traditional pre-tax deferrals
• Built-in employee education modules, including short videos and interactive FAQs

Technology & User Experience

• Intuitive web dashboard for sponsors, with at-a-glance plan metrics and compliance alerts
• Mobile-friendly participant portal lets employees view balances, change contributions and access learning tools
• Real-time integration with major payroll systems ensures deferrals, matches and loan repayments flow seamlessly

Customer Support & Onboarding

• Dedicated client success manager guides you through every step
• Typical setup in 2–3 weeks: data gathering, testing and live payroll integration
• Ongoing support via email, phone and in-app chat keeps questions from piling up

Best For

Small to medium businesses that want an attractive, easy-to-use 401(k) with transparent, flat-fee pricing—no surprises or percentage-based charges.

Pros & Cons

Pros:

• Predictable, flat-fee billing simplifies budgeting
• Rapid implementation and minimal administrative lift
• Modern user experience for both sponsors and employees

Cons:

• Smaller roster of investment options compared to full-service TPAs
• Limited in-house, face-to-face advisory support

Choosing Your Ideal 401(k) Provider

Now that you’ve reviewed the top 10 providers, the right choice comes down to matching your small business’s unique needs with the strengths of each platform. Consider the following core factors as you narrow the field:

• Cost Structure: Flat-fee vs. asset-based vs. per-participant pricing. Determine which model aligns with your budget and headcount projections.
• Investment Menu: Passive index funds, actively managed portfolios, ETFs, target-date series or self-directed brokerage windows—choose the depth that your workforce requires.
• Administrative Burden: Look at integration with your payroll/HR system, user-friendly portals, compliance checklists and automated testing.
• Service Model: From in-branch advisory (Merrill, Schwab) to fully digital robo-advice (Betterment, 401GO), pick the support style that fits your team’s experience level.
• Fiduciary Assistance: Verify which providers offer 3(16) administrative or 3(38) investment fiduciary services to offload ERISA duties and reduce your liability.

Once you’ve identified your “must-haves,” a structured Request for Proposal (RFP) process helps ensure apples-to-apples comparisons. Here’s a simple roadmap:

1. Draft a one-page RFP outlining your plan design preferences, anticipated employee census and any special requirements (e.g., Roth option, loan provisions).
2. Send this RFP to three to five finalists, requesting detailed quotes that break down all startup, ongoing and participant fees.
3. Review proposals side by side, focusing on total cost, service levels, onboarding timelines and embedded fiduciary support.

Beyond the numbers, speak directly with each provider’s implementation team. A fifteen-minute discovery call can shed light on responsiveness, technology roadmaps and the quality of participant education. Ask specifically how they handle Form 5500 preparation, nondiscrimination testing and any audit support.

When you’re ready to move forward, partnering with an independent administrator like Summit Consulting Group, LLC can streamline the entire journey. From crafting the RFP to serving as your 3(16) fiduciary, Summit Consulting Group brings deep ERISA expertise, automated workflows and a vendor-neutral approach—so you get the best of every provider without the guesswork.