To make your deal better, you need the right provider for the 401(k) plan. For that, you should consider some aspects that make the plan better. How the plan is funded and if it is stable, we need to find two important factors. It should also have friendly and available customer service. Agents should also know how to help you if there are any problems with your plan.
Sometimes, peoples think that 401(k) plans are only for large employers. But actually, this is untrue. Even if you have a small business, you may want to give your employees, this is a better savings plan that will cost you less.
Basically, Small business 401(k) plans are built for small businesses. They don’t focus on what form your business has; only provide you a less of a burden on your budget.
In this post, we have found some best 401(k) plans providers and also listed some of the best features for small employers. Let’s check them.
Employee Fiduciary: Best for Small Employers
For 401(k) plans, the Employee Fiduciary has low fees. This firm invites you to compare their 401(k) plan with your current plan. In short, gives the same option as larger companies but claims lower fees.
To open a plan, you will need $500 and for converting an existing plan, need $1000. You have more than 377 mutual funds and ETFs choices to choose from. It also allows you access to a broker through TD Ameritrade as well. Basically, the fees are low for its 401(k) plans and it offers tax return forms and a summary of the annual report.
The company also sends benefit statements. If plan members need help, there is a toll-free number as well. A Low-cost investment has various options include Vanguard funds, index funds, and Exchange Traded Funds (ETFs).
Charles Schwab: Best for Low Operating Costs
Charles Schwab is well known in the financial industry which offers Index Advantage 401(k) plans with low fees. It also has some other plans to choose from. You can get plan counsel, as well as access to those accounts that offer interest through the Schwab Bank. Their plans charge no annual fees. Moreover, the scheme also gives members full access to all investment services.
If you have your own business or you are self-employed, then you can pay into an individual 401(k) plan. These plans give you more benefits almost the same as a traditional 401(k) plan. The best thing about this individual 401(k) plan is that you can specify where you invest your money.
This plan has a monthly service charge that varies according to your needs. Payments in your plan are tax-deductible, and profit tax is deferred.
Paychex: Best for Payroll Services
If you have owned a small firm and looking for 401(k) with a need of payroll service, Paychex is the best provider for you. It has lower-cost options and an all-in-one service for small employers with a fine reputation. Paychex also comes up with HR services and benefits administration which is great for your business. Business loans and other services also become a part of its services.
Paychex is primarily an HR/payroll services company that has teamed up with other 401(k) providers for you. It also takes care of your plan administration. If you choose to use its tax services, you will be charged an additional fee for handling tax forms and tax services.
There are more than 100 offices of Paychex around the country. If you have any difficulty, you can easily contact its customer support lines which are open 24 hours over a week.
ADP: Best for Combined Services
Another 401(k) provider is ADP which offers combined services for small employers. ADP provides 401(k) plans, insurance, payroll, tax filing, human resources, and other services. It is perfect for small companies with up to 49 plan members and gives various 401(k) plans for businesses.
Consulting services are also available to help you choose the set of products your company needs. Employers moving from another firm to ADP have the option to transfer their plans.
401 (k) plans offer flexible options for investing in many mutual funds or other types of investments. They offer three investment portfolio samples for members help to choose from:
- For those investors who have a bit of a desire to manage their experience, you can choose from a basic sample line-up.
- A standard sample line-up helps investors who want to share some of the experience.
- An advanced sample line-up helps you choose funds or investments that give you more options to customize and manage your plan.
Vanguard: Best for Low-Cost Fund Options
Vanguard is one of the largest mutual fund brokers around the world. It has a number of low-cost 401(k) options that involve mutual funds and ETFs. Vanguard does not provide any services other than the financial aspect of the plans and funding.
It also offers target-date funds that allow you to choose plans according to your needs. Target-date funds are less expensive than other broker schemes so the fund planners design them to maximize earnings.
While Vanguard does not handle its own 401 (k) customer service, the 401 (k) plan staff takes care of it. If you already have a plan administrator, most of Vanguard’s services are easily integrated. This leads to less costly options for 401 (k) investment options.