How to Evaluate Retirement Plan Providers

Whether you’re looking to set up a 401(k) plan or choose a new plan provider for the coming year, finding the right one for your business is critical to the success of your retirement plan.

However, not every plan provider will be the best fit for you, your employees, and your unique business goals.

Learn more about the impact a provider can have on your retirement plan and how to best evaluate your options.

61%

of organizations responding to our 2024/2025 Compensation, Retirement, and Benefits Trends survey ranked the level and quality of service as the most important factor in evaluating retirement plan offerings.

What are four common reasons businesses change retirement plan providers?

Knowing why other plan sponsors leave their retirement plan providers can offer insights into what characteristics to look for in your new provider relationship. It can also help you identify potential weaknesses and risks or enable you to alleviate unnecessary administrative burdens you face within your current plan.

What fees do retirement plan providers charge?

It can be a challenge to navigate retirement plan costs, especially if you haven’t sponsored a plan before. But as a plan sponsor, understanding fees is an extremely important part of your fiduciary duties. Make sure your provider is transparent with their fees. Compare and consider:

  • Administration and investment management fees
  • Consulting fees paid to your advisor or broker if applicable
  • Whether you’re charged based on assets or a flat fee
  • Whether your plan is bundled/full-service or unbundled

Your retirement plan provider checklist

Comparing plan providers? Select each category below for key areas to ask about with your plan provider.

  • Plan sizes and types
  • Plan design options
  • Technology
  • Features to alleviate administrative burden
  • Fiduciary support
  • Reporting and benchmarking
  • Education and support
  • Investment options
  • Enrollment experience
  • Website capabilities, apps, and integration
  • Fees and fee transparency
  • Revenue-sharing practices
  • Forms and procedures
  • Customer service
  • Security and privacy policy
  • Reputation
  • Company values
  • Organizational structure
  • Adaptability
  • Education

Download the Evaluating a Retirement Plan Provider Checklist and keep it with you as you explore your options.

Explore the differences between plan providers.

To find the best retirement plan provider for you, evaluate how well they can support your plan and improve the results for your participants and your business. Dive deeper into a variety of areas like their reputation, audit process, technology and data security practices, participant experience, tools, digital experiences, and more.

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