The Best 401(k) Providers of 2023

• Minimum Deposit: Varies by plan
• Fees: Varies by plan
• Account Types: Defined contribution plans, defined benefit plans, nonqualified plans, combination plans, 457(b) plans, 403(b) plans

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Why We Chose It

T. Rowe Price is a well-respected name in the retirement planning industry, with more than 80 years in the business. It offers more than 100 mutual funds to plan participants, along with a wide range of funds from other firms, which allows your employees to invest the way they want to.

One significant perk of T. Rowe Price is the variety of plans it supports. You can use it to provide a 401(k) plan or a 457(b), 403(b), or even a defined benefit plan.

Employers such as state and local government agencies and some nonprofit organizations may offer tax-deferred 457(b) plans. Meanwhile, employers such as public educational institutions (public schools, colleges, and universities), certain nonprofits, and churches or church-related organizations may offer 403(b) plans.

This lets you tailor your retirement plan to the needs of your company.

• Minimum Deposit: Not disclosed
• Fees: Monthly: $160 plus $4 per participant, plus 0.10% of eligible plan assets or $20.83, whichever is greater
• Account Types: Traditional and Roth 401(k)s

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Why We Chose It

ADP is a business services company that does more than just provide 401(k) services. The company also offers payroll, insurance, human resources, and tax services to small business owners. That makes it appealing to business owners who want a one-stop shop for all their needs.

The company’s 401(k) service is solid, with clear fees and access to more than 13,000 different investment options.

• Minimum Deposit: None
• Fees: Varies by plan
• Account Types: Solo 401(k), SEP IRA, SIMPLE IRA, traditional and Roth 401(k)s

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Why We Chose It

Charles Schwab is another major player in the financial services industry. It offers a variety of retirement plan options for business owners, including more simplified SEP and SIMPLE individual retirement account (IRA) options as well as 401(k) plans.

The broker’s accounts have no minimum deposit requirements, making it easy to get started. It also is known for keeping fees low. For example, the Solo 401(k) plan and SEP IRA have no maintenance fees.

Another benefit that can bring value to your employees is access to retirement planning tools and guides, along with 24/7 service and support.

• Minimum Deposit: Not disclosed
• Fees: Monthly: $42 to $125 flat fee plus $5 to $6 per plan participant
• Account Types: Traditional and Roth 401(k)s

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Why We Chose It

Managing investments can be difficult, so some investors turn to robo-advisors for help. Robo-advisory services are computer programs that manage investments on your behalf.

If your employees to take want a hands-off approach to investing, Betterment’s robo-advisory service for 401(k)s might appeal to you. Another benefit is that Betterment offers other services, including integrations with popular business tools, payroll programs, and a dashboard you can use to track your company’s financial metrics.

• Minimum Deposit: Varies by plan
• Fees: One-time setup fee, plus annual fees based on number of participants
• Account Types: Solo 401(k) or Roth 401(k), SEP IRA, SIMPLE IRA, small business 401(k)

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Vanguard is one of the largest investment companies in the industry and is well-known for its low investment costs.

If you want to give your employees access to passively managed index funds that let them invest with very limited fees, Vanguard offers some of the industry’s lowest expense ratios, such as a total stock market index fund with a fee of just 0.02%. It also offers low-cost target-date funds, which make it easy for your employees to choose investments and tailor their savings to their expected retirement years.