Best 401k provider for small business?

[jac941]

I’m working for a small business (~20 employees) that is considering changing the 401k provider. I’m not the decision maker here, but I’d like to suggest a couple of good providers that have funds with low fees for employees (ie a plan that will benefit me) so at least they’re in the running.

I will suggest Vanguard & Fidelity but I’ve heard that they’re really not great for small businesses who need accessible customer service and easy management of the 401k. I also hear that their pricing model is really more advantageous for bigger companies.

Are there any others that folks recommend that might better balance business needs and desire for good investment options for employees? It doesn’t need to be the cheapest option for the company, but the process (sign up, management, employee education, etc.) needs to be as painless as possible.

I had Guideline at another small company I worked for in the past and it was ok. Definitely not as good as Vanguard, but annual fees were 0.08% and I managed to find some reasonable funds with acceptable expense ratios. I’ve read good things about Employee Fiduciary as well, but don’t know of anyone who has ever used them. Are there others in this category of easy for the company and still a good deal for the plan participants?

Thanks!

[Peachtea]

No experience with either, but when I last tried to research this it seemed like Guideline and Employee Fiduciary were the better options/ really the only two options that had low fees for both employees and employer. Other options I saw that were very cheap for employer had high fees for the employees. Not sure that's helpful other than to confirm you've likely found the universe of options.

[jac941]

No experience with either, but when I last tried to research this it seemed like Guideline and Employee Fiduciary were the better options/ really the only two options that had low fees for both employees and employer. Other options I saw that were very cheap for employer had high fees for the employees. Not sure that's helpful other than to confirm you've likely found the universe of options.

Thanks! It seems like there aren’t many companies serving this category & it’s hard to find good info out there. Probably why so few small businesses end up with truly good 401k options.

[Firehazard]

Avoid Fidelity.  They used to be really great to work with, but in the last few years they have offered early retirement to their most experienced plan managers, and it shows.  I would explore using a PEO such as ADP to outsource all of your company payroll and benefits including 401k.  There is a lot you must know to manage a 401k properly.  Mistakes can be costly.  I believe ADP would be the fiduciary, versus the employer.

[jac941]

All payroll is outsourced.

I’m familiar with ADP, but unless things have changed recently, the their 401k has higher fees and funds available have higher expense ratios.

Why would you recommend them over a Gusto + Guideline combination? Or even ADP payroll and Guideline 401k? Guideline would be the fiduciary.