Best 401 k Providers

It is a misconception that 401(k) plans only fit large companies or employers. We found the best 401 k providers who offer individual plans for various businesses. However, even though your business is small, you would still like to provide your employees with a sound and safe retirement savings plan that is also economical.

Best 401 k Providers

There are numerous 401(k) plans available. When examining which of these 401(k) plan providers to select, you must put several crucial factors into serious consideration. Some of these essential factors include:

• Funding options
• Financial stability
• Customer service
• The economic structure of the company

401(k) plans meet specific needs unique to small business owners and their employees. It doesn’t matter whether your business is a partnership, Limited Liability Company, Corporation, or sole proprietorship. There is always a 401(k) plan available to help your employees.

Putting some of the factors mentioned above into consideration, below are some of the best five 401(k) plan providers you can use.

1. Charles Schwab

Not many names come to mind with great honor with the retirement planning industry as Charles Schwab. Charles Schwab provides Index Advantage 401(k) plans with low administrative costs and some ETFs (Exchange Traded Funds) options.

It comes with advisory services, and it also has an interest-bearing feature through the Schwab Bank. Charles Schwab plans have no annual fees. Employees will also enjoy unrestricted access to all of its banking and brokerage services.

Business owners or self-employed individuals can contribute to an individual 401(k) plan that provides several similar benefits as the traditional 401(k). A fantastic thing about the personal 401(k) plan is that it enables you to direct how the program invests your contributions.

This plan has no monthly maintenance fees or service fees. It doesn’t require a minimum amount to open an account. Contributions are tax-deductible, and the earnings are tax-deferred. All the plans on Charles Schwab come with retirement planning aids and 24/7 support and service.

2. Employee Fiduciary

For setting up and administering a 401(k) plan, the Employee Fiduciary charges low fees. CBS Money watch rated it as the Best Small Company 401(k) provider. Employee Fiduciary company urges employers to compare their 401(k) plans against their current provider’s plan, claiming low fees with the same investment options as plans sponsored by the country’s largest organizations.

The minimum amount needed to start a plan on Employee Fiduciary is $500 – $1,000. There are over 377 ETFs, mutual funds, and access to brokerage through TD Ameritrade.

The fees for 401(k) plans are cheap, and Employee Fiduciary also offers benefit statements, tax return forms, annual report summaries, and a toll-free number for customers who need assistance.

3. Paychex

For a small employer looking into 401(k) plans and desires a payroll service, Paychex may be the exact plan for you. Paychex is an all-encompassing service for small employers with an exceptional reputation. It provides an affordable option to some of the more expensive 401(k) providers.

Paychex offers 401(k) plans to small employers in addition to HR services and payroll, business loans, outsourced benefits administration, and other services. It is majorly a payroll/HR services company, but it coordinates with 401(k) providers, making it possible for you to take care of administration services. For small companies that need multiple services provision, Paychex is an affordable option.

Paychex has over 100 offices around the country, which you can reach for assistance. Small employers are charged depending on their employees and the number of pay periods each year. There are some extra fees for processing tax forms and other services.

4. ADP

ADP is another 401(k) provider that renders collective services for small employers covering 401(k), tax filing, HR, insurance, payroll, and other administrative services. It specializes in small companies with between 1 to 49 employees and provides different 401(k) retirement plans for these small-sized companies.

Advisor services are accessible to assist you in selecting the kind of products your employee/company needs. Employers who change to ADP from another provider have the choice of allowing their employees to transfer their plans over.

Flexible investment options from more than 130 leading investment managers are available on the ADP platform. ADP has three investment tiers that are available for participants. These investment tiers:

• The primary sample line-up (It is for investors with little or no investment experience)
• The standard sample line-up (made for investors with an average level of investment experience)
• The advanced sample line-up (formulated for participants with above-average investment experience)

Assistance may be asked from investors to choose the appropriate plan or even request that the system selects a method for them. Once they are enrolled, employees have full access to a mobile application enabling access to their retirement account from their mobile devices. 

5. American Funds

The fantastic thing about a 401(k) plan from American Funds is that it can be modified to fit almost any business, from businesses to mergers to well-established entities. It has more than 360,000 401(k) plans available, including individual mutual funds, Roth IRA, traditional IRA, and objective-focused mutual funds.

It also has various retirement plans available, which include:

• The growth funds (It is to maximize long-term growth of capital)
• The growth-and-income funds (it offers the chance for potential income growth and capital growth)
• The equity-income funds (which earn above-average current and long-term income)
• The balanced funds (These funds ars to conserve current, capital, and long-term growth with investments in bonds, stocks, and other fixed-income securities)
• The bond funds (These funds are to explore a high level of new income with the growth of capital as a lesser goal)
• The cash-equivalent funds (They are to provide income on cash reserves and preserve capital)
• The retirement income portfolio sequel to maximize current revenue, long-term growth, and conservation of capital

6. Fidelity

Fidelity‘s self-employed 401(k) account is an incredible choice for fee-conscious investors. It charges no opening or closing fee and no annual maintenance fees. Customers can invest in ETFs, stocks, and more than 3,400 mutual funds without any trading commissions. These possibilities mean that many small business owners could use this account without paying any fees to Fidelity.

Fidelity supports stocks (including fractional shares), CDs, bonds, options, ETFs, and mutual funds. Fidelity has four broad index funds among its mutual fund choices with no minimum investment and expense ratio. If you wish to level up your investment plan, you can utilize the retirement apps, calculators, and other resources. 

7. E*TRADE

E*TRADE allows access to traditional individual 401(k) plans and Roth 401(k) plans. But it offers more flexibility with its solo 401(k) plan. On top of that, you can take a loan from your 401(k) balance at E*TRADE. It has a strong reputation for guiding active online traders, though you can invest entirely hands-off, using its managed portfolios product for an extra fee. Skilled traders may prefer making use of the dynamic Power E*TRADE platform. It is so available for mobile users as an upgrade to the regular web experience. As a large discount brokerage, it can deal with most investor needs. E*TRADE wins in this category thanks to its support for Roth contributions and 401(k) loans.

8. Vanguard

The Vanguard individual 401(k) account doesn’t have an annual fee on its own for accounts with a minimum of $10,000 in Vanguard funds. It charges $20 as a yearly fee. Depending on your investment mode, the cost can increase and could be the primary reason to consider buying those Vanguard funds elsewhere. You can also trade ETFs and stocks with no commission, in addition to options and fixed-income investments.

Though, to some investors, who desire to keep a minimal amount of high-quality vanguard funds in their portfolios, the fee could be worthwhile.

9. TD Ameritrade

TD Ameritrade is another prominent discount brokerage and also the best for active traders. It offers an individual 401(k) account with no commission-free stock, recurring fees, and ETF trades. On the other side, its solo 401(k) also endorses 401(k) loans and Roth contributions. Its standout feature for effective traders.

Charles Schwab has acquired this brokerage, and in the nearest future, the TD Ameritrade accounts will evolve into Schwab accounts.

10. Rocket Dollar

Rocket Dollar enables you to invest in anything you can pay for with a checkbook. That means you can invest in real estate and other non-traditional assets while enjoying the tax benefits of a solo 401(k) account.

Instead of bonds, mutual funds, ETFs, and stocks, Rocket Dollar accounts offer you the control to purchase any asset with your solo 401(k) that the IRS permits. That can include fix-and-flip real estate, rental properties, or land that you think you will appreciate. You can also invest outside real estate, such as private investments in a startup or precious metals. However, the flexibility of Rocket Dollar makes it the solo 401(k) that’s best for real estate.

The Bottom Line

Not having an employer doesn’t mean you can’t set up a 401(k) plan for yourself, especially when you are self-employed. Selecting a solo 401(k) from any provider on the list could be a good fit for your specific investment needs and retirement savings; so far, you understand the goals for both.