quick mini-survey on bundled provider

what are the most practical options (cost first, quality second) to offer a fully bundled Safe Harbor Match (Basic formula) stand-alone 401(k) Plan?  For a small company with 15-20 employeees (high turnover, bunch of part-timers).

Consider a PEP or DCG that has been operating at least since early 2022 and has a significant book of business.  These types of plans bundle in most of the fiduciary functions, plan document, disclosures, and investments needed to operate a plan on top of their stable recordkeeping platforms.  A 401(k) plan with an SHM is pretty much plain vanilla these days and this one should fit easily within the service offerings.

Look for a PEP or DCG plan provider that has a very good relationship with the company's payroll provider, or have the company consider switching to a payroll provider who the plan provider works with.  Otherwise, disconnects between the plan and payroll will be a source of problems and costs for fixes.

Keep in mind that second place quality all too often leads to unavoidable costs that exceeds the quoted standard service fees.

We sponsor a group trust plan that handles these issues. Started 1995, Ping me if you like.

Tom B

17 minutes ago, TFB3 said:

We sponsor a group trust plan that handles these issues. Started 1995, Ping me if you like.

Tom B

Which issues?  I was simply asking which vendors the practioners like the most nowadays.  This is for a commodity-like product (401k SHM plan) which does not require elegant expertise of the TPA.  Based on the criteria of cost and sevice with ephasis on costs.

It depends on what you are looking for.  Who are your employees?  Are they tech savy, there are a couple of platforms that focus on small plans, that are no frills. If you want them to have customer service, then I would look at TPA's or bundled service providers.  There is usually a minimum charge with these folks though.  

14 hours ago, Gina Alsdorf said:

It depends on what you are looking for.  Who are your employees?  Are they tech savy, there are a couple of platforms that focus on small plans, that are no frills. If you want them to have customer service, then I would look at TPA's or bundled service providers.  There is usually a minimum charge with these folks though.  

 

which are the platforms that focus on micro plans?

There is a rapid expansion of providers focusing on small businesses.  Some are specialty groups within major providers, offerings from providers of payroll and HR services for small businesses, and fintech start-ups are fully automated and that bundle plans in with investment, banking or other financial services.  Here is a small sample:

• Guideline
• 401Go
• Human Interest
• Fidelity Advantage
• Schwab Small Business
• Betterment for Business
• ADP
• Paychex
• Paycom
• Paycor
• Ubiquity
• Simply Retirement
• Sharebuilder 401k
• Ascensus
• Vestwell
• ForUsAll
• Gusto
• Rippling

With trillions of dollars at stake, we can expect continued expansion of high tech integration of plans with other financial services.  We also already are seeing AI being applied to investment advice, financial planning, plan design and tax advice.

From the perspective of having and maintaining a plan, we all know that company demographics, human errors, ignorance, and expanding regulatory complexity can easily derail plan accounting and cause operational failures.  We can expect to see attempts to apply AI to these concerns.

To borrow a conclusion from the British Journal of Clinical Pharmacology:  "Like the iconic scene from Malcolm in the Middle, we must avoid finding ourselves unprepared for the unforeseen consequences of these powerful tools. As Dewey's famous line from the show reminds us, ‘The future is now, old man’, indicating that we already live in a time that was once considered the distant future."