Best 401k providers for small businesses?

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Lessenmacher
Posts: 4
Joined: Wed Jan 10, 2018 10:17 pm

Best 401k providers for small businesses?

Post by Lessenmacher » Wed Dec 26, 2018 1:43 pm

I own a small business (8 employees) and I have a 401k plan with Lincoln Financial that is not low cost, and an advisor that gets 0.5% a year. I know that I need to restructure the whole thing, but I don't know where to start looking. Does anyone have suggestions on 401k providers that offer competitive rates for small businesses (with less than 500k in assets)? Also, when comparing plans, what questions should I ask? Thank you in advance!

nervouscorps
Posts: 41
Joined: Sun Jan 05, 2014 8:01 pm

Re: Best 401k providers for small businesses?

Post by nervouscorps » Wed Dec 26, 2018 2:39 pm

Employee Fiduciary seems to be a favorite here. Low cost, flexible, pick any funds you want. I have used them for 2 companies and they are fantastic.

jacoavlu
Posts: 737
Joined: Sun Jan 06, 2013 12:06 pm

Re: Best 401k providers for small businesses?

Post by jacoavlu » Wed Dec 26, 2018 3:07 pm

I've shopped around and ended up with Vanguard / Ascensus as our plan is larger in terms of assets and they don't charge any asset based fees. At a smaller plan size this is less of a consideration.

I like RPG consultants when I spoke with them.

Guideline is low cost but limited in terms of options - they only offer comp to comp and flat amount profit sharing.

Also ask around if there are any regional actuary firms, sometimes you'll find a real bargain locally.

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ruralavalon
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Location: Illinois

Re: Best 401k providers for small businesses?

Post by ruralavalon » Wed Dec 26, 2018 9:17 pm

Lessenmacher wrote:
Wed Dec 26, 2018 1:43 pm
I own a small business (8 employees) and I have a 401k plan with Lincoln Financial that is not low cost, and an advisor that gets 0.5% a year. I know that I need to restructure the whole thing, but I don't know where to start looking. Does anyone have suggestions on 401k providers that offer competitive rates for small businesses (with less than 500k in assets)? Also, when comparing plans, what questions should I ask? Thank you in advance!
Small company 401k providers which have been favorably mentioned here are:
www.employeefiduciary.com;
https://www.guideline.com/; and
https://www2.ascensus.com/.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

Topic Author
Lessenmacher
Posts: 4
Joined: Wed Jan 10, 2018 10:17 pm

Re: Best 401k providers for small businesses?

Post by Lessenmacher » Fri Jan 11, 2019 8:13 pm

Thank you everyone for your suggestions! I have looked into the providers and I have narrowed it down to Vanguard, Employee Fiduciary, and Guideline. One of the differences that stands out to me is that Guideline is the lowest cost, but doesn't offer the "new comparability" calculation for the profit sharing, which from what I understand sometimes allows for the largest percentage of the contribution to go to the business owner, if the owner is one of the older employees. The problem is that I am actually one of the youngest employees. Given that, should I even care about the availability of new comparability?

MotoTrojan
Posts: 5849
Joined: Wed Feb 01, 2017 8:39 pm

Re: Best 401k providers for small businesses?

Post by MotoTrojan » Sat Jan 12, 2019 1:44 am

Lessenmacher wrote:
Fri Jan 11, 2019 8:13 pm
Thank you everyone for your suggestions! I have looked into the providers and I have narrowed it down to Vanguard, Employee Fiduciary, and Guideline. One of the differences that stands out to me is that Guideline is the lowest cost, but doesn't offer the "new comparability" calculation for the profit sharing, which from what I understand sometimes allows for the largest percentage of the contribution to go to the business owner, if the owner is one of the older employees. The problem is that I am actually one of the youngest employees. Given that, should I even care about the availability of new comparability?
Not familiar with that but Guideline is fantastic otherwise.

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