The following employee retirement plan providers may not have scored as high as our best picks above. Still, they all offer reliable service and an attractive mix of options that could make one of them the best fit for your employees’ retirement plan needs.
Vanguard – Best for Investment Flexibility
As one of the oldest and largest mutual fund companies in the world, Vanguard offers a wide range of mutual funds and ETFs for account holders to choose from. The company also offers retirement services, including individual retirement accounts and some small employer-sponsored plans.
Vanguard shines because of its massive list of cost-effective investment options. Long considered the king of cheap investing, Vanguard has been helping individuals and small businesses save for retirement for more than 40 years. Of its actively managed funds, 86 percent have outperformed their peers over the past decade. What’s more, the average fund expense ratio at Vanguard is 84 percent lower than the industry average. Another bonus is that the minimum initial investment required to open a small business retirement account is the price of one share.
Fidelity – Best for the Self-Employed
Fidelity is one of the largest privately owned financial services companies in the world. The firm provides a wide array of services, including individual retirement accounts and employer-sponsored retirement plans. Many of the IRA options can be opened without an advisor, including simplified employee pension (SEP) IRAs, which are a great cost-effective option for entrepreneurs. Accounts can be set up quickly and easily online.
Within these retirement accounts, particularly the IRA options, Fidelity customers get access to a full array of investment options. Users can trade U.S. stocks, ETFs and options for zero commission, and there are no annual fees for SEP IRAs. If you’re self-employed and want a retirement account you can set up online, Fidelity is a great option that has a well-deserved excellent reputation.
Guideline – Best for Compliance
Guideline is a relatively new company that has a particularly strong safe harbor 401(k) offering. Safe harbor 401(k) plans are great for small business owners because they allow company owners to maximize their own contributions, even if not all of their employees participate in the plan. Business owners who use a traditional 401(k) instead may be prohibited from maximizing their contributions, because the IRS imposes limitations based on employee participation and contribution rates.
Because Guideline is an online option, it’s easy to set up and relatively cost-effective. The company’s basic plan starts at $49 per month, plus $8 per employee per month. Guideline’s other plans, which offer additional features, cost $79 and $129 per month. Employees are also charged additional account fees, but they are minimal: 0.08 percent annually.
Shelton – Best for Customer Support
Shelton Capital Management differentiates itself in a competitive market by providing its clients with concierge-level customer service and support, included with all of its 401(k) retirement plans. Shelton’s commitment to service can be seen in other areas like on-site live investment education sessions designed to help boost participation rates. U.S.-based reps are available to answer calls from participating employees and provide ongoing support wherever needed.
The company offers 3(38) investment fiduciary services with a focus on supporting small business owners and employees with 401(k) plans. Public pricing is not available for Shelton’s 401(k) plans, but ongoing costs will typically include investment fees, often as a percent of total assets. Other costs include administration fees and individual service fees.
Perfect401k – Best for Easy Implementation
Perfect401K offers one of the easies implementation processes we’ve seen. If you want to attract top talent with a competitive benefits package but you’re intimidated by the thought of implementing a retirement plan, Perfect401(k) may be the best fit. The company makes it easy for business owners to set up a retirement plan for their employees by assigning each business a designated implementation team that handles the plan design, enrollment and training.
The Perfect401(k) plan costs employers $375 per quarter ($1,500 annually) for 10 employees, plus $7.25 per additional employee each quarter. Employees are charged 0.67 percent or less of their account balance each month to cover the cost of mutual funds, investment consultation, educational tools and other management fees.