How we make this list: we compare pricing pages, product documentation and public user reviews. Ratings come from G2, Capterra or Trustpilot, with the date we checked them.
Key takeaways
- Fidelity is the largest 401k service provider in the US by plan count, with a small-business pooled employer plan for first-time sponsors and a broad fund lineup.
- Vanguard suits cost-conscious sponsors and participants, with a long focus on low-cost index funds and simple, long-term portfolios.
- Charles Schwab pairs a wide investment menu with brokerage features, including a self-directed brokerage window on many plans.
- Empower, Principal, T. Rowe Price, Merrill, and John Hancock each bring a different strength, from managed accounts and target-date funds to insurance-backed guarantees and advisor support.
- Plan pricing is usually quoted by the provider based on headcount, assets, and services, so always request a full fee disclosure before comparing providers.
Quick comparison
| Tool | Best for | Starting price | Free plan |
|---|
 Fidelity Investments | Large and small employers wanting broad service | See website | No |
 Vanguard | Low-cost index investing for retirement | See website | No |
 Charles Schwab | Wide investment choice and brokerage access | See website | No |
 Empower | Managed accounts and participant tools | See website | No |
 Principal Financial Group | Mid-sized employers and target-date funds | See website | No |
 T. Rowe Price | Target-date funds and active management | See website | No |
 Merrill | Employers wanting advisor-led service | See website | No |
 John Hancock | Guaranteed and insurance-backed plan options | See website | No |
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We review this list regularly. Vendors can request a listing, send updated pricing or ask about featured placement.
The best 401k investment companies
#1Fidelity Investments
Best for: Large and small employers wanting broad service3.9/5 on
G2 (7 reviews, checked Oct 2026)
Visit fidelity.com
Starting priceSee website
Free planNo
Fidelity is the largest 401k service provider in the US, with tens of thousands of plans, and that scale shows in its range of services. Large employers get recordkeeping, compliance support, payroll integration, investment management, and participant education under one provider. Small businesses get a simpler route through Fidelity Advantage 401k, a pooled employer plan designed for companies offering a 401k for the first time, with Fidelity acting as plan sponsor and fiduciary for many day-to-day duties. A safe harbor design with a set employer match is part of that pooled plan structure.
Participants benefit from a wide fund menu, including index funds, target-date funds, and a brokerage window on many plans. Planning tools and mobile access help employees check balances, change contributions, and review fund performance. The main caution is fee variation. Fund expenses, recordkeeping charges, and advisory fees differ by plan size and design, so an employer should request the full fee disclosure and compare the all-in cost, not just a single fund expense ratio.
What we like- Very broad fund lineup and planning tools
- Small-business pooled employer plan for first-time sponsors
- Strong participant education and mobile tools
Watch out for- Fund and service fees vary by plan, so totals need careful review
- Large platform can feel complex for very small teams
Starting priceSee website
Free planNo
Vanguard built its reputation on low-cost index investing, and that approach carries directly into its retirement plans. Participants who want a simple, diversified portfolio can choose a target-date fund that adjusts its mix as retirement nears, or build a portfolio from broad stock and bond index funds. That simplicity helps employees who do not want to research dozens of funds, and it keeps fund expenses low for many plans. Vanguard's platform emphasizes contribution rates, asset mix, and long-term progress rather than frequent trading.
For employers, Vanguard offers recordkeeping and administration with a focus on cost control and straightforward plan design. The trade-off is breadth. Vanguard offers fewer active funds, specialty funds, and brokerage features than Fidelity or Schwab, and its digital tools are less feature-rich for participants who want advanced research. For a sponsor whose priority is keeping costs low and portfolios simple, those limits are acceptable.
What we like- Long focus on low-cost index funds
- Simple target-date and balanced portfolios
- Clear long-term investing approach
Watch out for- Fewer active and specialty fund choices than some rivals
- Tools feel plain next to broader brokerage platforms
#3Charles Schwab
Best for: Wide investment choice and brokerage access1.5/5 on
Trustpilot (786 reviews, checked Oct 2026)
Visit schwab.com
Starting priceSee website
Free planNo
Charles Schwab suits employers and participants who value investment choice. A Schwab plan typically includes a menu of mutual funds and ETFs, target-date options, and, on many plans, a Personal Choice Retirement Account, which is a self-directed brokerage window. That window lets participants invest beyond the standard menu in thousands of funds, ETFs, and individual securities, subject to plan rules. For experienced investors, that freedom is a real advantage. For employees who prefer a default, a target-date fund or managed portfolio remains the simpler route.
Schwab also provides recordkeeping, compliance support, payroll integration, and participant education, with research tools that help employees compare funds and model retirement income. The platform is well regarded for clarity and for its brokerage heritage. The main risk is choice overload. A menu with too many similar funds can confuse participants and lead to poor diversification, so employers should work with Schwab to keep the core menu focused and to set a sensible default investment for employees who do not choose one.
What we like- Broad fund and ETF selection
- Self-directed brokerage window on many plans
- Strong research and planning tools
Watch out for- Wide choice can overwhelm employees who want a simple default
- Fees and services vary by plan design
Starting priceSee website
Free planNo
Empower is one of the largest retirement recordkeepers in the US, serving workplace plans across many industries. Its participant experience centers on a dashboard that shows balances, contribution rates, projected retirement income, and progress toward a savings goal. Managed account services can build and adjust a portfolio for participants who want professional management, while self-directed participants can choose from the plan menu. Financial wellness tools cover budgeting, debt, and emergency savings alongside retirement, which helps employees see the 401k as part of a wider plan.
For employers, Empower offers recordkeeping, compliance testing, payroll integration, and plan design support, with reporting for sponsors and advisors. Its technology and participant tools are a strength for mid-sized and large employers that want high engagement. The main cost to check is managed account pricing, which sits on top of fund expenses and recordkeeping fees. Participants who choose managed accounts should understand that fee and what it buys, and sponsors should compare it with target-date fund costs for employees who want a simpler managed option.
What we like- Strong managed account and advice options
- Participant dashboard with goals and projections
- Financial wellness and education programs
Watch out for- Managed account fees add to fund costs
- Service experience can vary by plan size
#5
Principal Financial Group
Best for: Mid-sized employers and target-date funds
Visit principal.com
Starting priceSee website
Free planNo
Principal serves many mid-sized employers with a full retirement plan service, including recordkeeping, compliance, investment selection, and participant support. Its target-date funds are a core strength, giving participants a diversified portfolio that shifts toward bonds and stable investments as retirement approaches. That default matters, because many employees never change their initial investment choice. A well-built target-date series gives those employees a sensible portfolio without requiring ongoing decisions.
Principal also offers managed accounts, stable value options, and a range of equity, bond, and real asset funds, plus mobile access and education tools. Employers value its experience with plans in the mid-market range, where service and plan design support matter more than the lowest possible headline fee. The menu is narrower than the broadest brokerage-based plans, and pricing is quoted based on headcount, assets, and services. Employers should request a full fee schedule and compare fund expenses, recordkeeping charges, and any advisory fees together.
What we like- Strong target-date fund lineup
- Good support for mid-sized employers
- Mobile tools and participant education
Watch out for- Fund menu can feel narrower than Fidelity or Schwab
- Pricing is quoted by plan, so comparison takes time
Starting priceSee website
Free planNo
T. Rowe Price is best known as an investment manager, and its retirement plans reflect that strength. Its target-date funds, including the Retirement series, are widely used as plan defaults, and its active equity and bond funds appeal to sponsors and participants who want professional stock and bond selection rather than pure index tracking. Research depth, fund manager experience, and retirement planning tools support participants who want to understand their portfolio, not just pick a fund name.
As a recordkeeper, T. Rowe Price serves workplace plans with administration, compliance, and participant services, though its footprint is smaller than the largest recordkeepers. That size difference matters less for a sponsor that values fund quality and advice than for a sponsor that needs the broadest service network. The main cost question is active versus index pricing. Active funds typically charge more than index funds, so a sponsor should weigh whether the active funds in the menu justify their expense ratios compared with lower-cost index alternatives in the same plan.
What we like- Well-regarded target-date funds
- Active management heritage with research depth
- Strong retirement planning and education
Watch out for- Active fund expenses are higher than index funds
- Smaller recordkeeping footprint than Fidelity or Empower
#7
Merrill
Best for: Employers wanting advisor-led service
Visit ml.com
Starting priceSee website
Free planNo
Merrill, part of Bank of America, offers workplace retirement plans with a strong advisor-led model. Employers get plan design, recordkeeping, compliance support, and access to advisors who can help sponsors and participants with investment and retirement questions. Participants can choose from mutual funds, ETFs, target-date funds, and, on many plans, brokerage features, while also using Bank of America banking and Merrill wealth tools outside the plan. That integration appeals to employers and employees who already bank there.
The advisor model is both the strength and the cost to watch. Personal advice, plan reviews, and participant meetings add value for employers that want hands-on support, but they can also raise total plan costs compared with a low-cost, self-directed provider. Employers should ask how advisor fees are charged, whether they are paid from plan assets or by the employer, and what services are included. Participants should check fund expenses and any managed account fees before choosing an advised portfolio over a target-date fund.
What we like- Advisor support through Bank of America network
- Broad investment menu including brokerage options
- Integrated banking and wealth tools for participants
Watch out for- Advisor-led service can cost more than a self-directed plan
- Fund and service fees vary widely by plan
Starting priceSee website
Free planNo
John Hancock brings an insurance heritage to retirement plans, and that shows in its product range. In addition to mutual funds and target-date portfolios, many John Hancock plans include guaranteed interest accounts and stable value options that appeal to participants who want capital preservation alongside market investments. That mix suits employers with workforces that include cautious savers, as well as participants nearing retirement who want to reduce portfolio swings. Managed account services and participant education round out the offering.
John Hancock serves many small and mid-sized plans with recordkeeping, compliance, and payroll integration. The main comparison challenge is pricing. Insurance-based plans can bundle investment, recordkeeping, and guarantee costs in ways that are harder to compare line by line with a pure recordkeeper. Employers should request a fee disclosure that separates fund expenses, recordkeeping charges, and any insurance or guarantee costs, and should compare the total for a similar fund lineup.
What we like- Guaranteed interest and stable value options
- Strong service for small and mid-sized plans
- Participant education and managed accounts
Watch out for- Insurance-based pricing can be harder to compare
- Some funds carry higher expenses than pure index options
How we chose
We reviewed provider plan pages, fee disclosure practices, and public information on plan services, investment menus, and participant tools, and we checked each company against the same employer and participant questions. Does it offer recordkeeping, compliance support, and payroll integration. Does the fund menu include low-cost index funds, target-date funds, and a brokerage option where relevant. Are managed accounts, advice, and education available, and are fees disclosed in a way a sponsor can compare. We kept only companies with established US workplace retirement plan services, and we did not rank funds by past performance, because past returns do not predict future results.
What employers should check before choosing
Start with total cost, not a single fee. Ask each provider for recordkeeping charges, fund expense ratios for the proposed menu, managed account fees, and any per-participant or asset-based charges, all in writing. Then check service scope. Who handles compliance testing, government filings, payroll file integration, and participant questions, and what happens when a file fails or a deadline nears. A provider that leaves those jobs with the employer is cheaper on paper and more expensive in staff time.
Match the default to your workforce
Most participants will stay in the default investment, so the default matters more than the full menu. Compare target-date fund costs, glide paths, and underlying funds across providers, and ask how the default handles employees who are close to retirement. A low-cost target-date series with a clear glide path serves most workforces better than a long menu with no strong default.
Check participation tools, not just the portal
A good portal shows a balance. A useful plan helps employees save more. Look for contribution modeling, retirement income projections, automatic enrollment and escalation options, and education that explains the employer match in plain terms. Ask for participation and deferral data from similar-sized plans, while remembering that those figures reflect those employers, not a promise for yours.
Plan the transition carefully
Changing providers involves data transfer, fund mapping, blackout periods, and employee notices. Ask each finalist for a written transition timeline, a fund mapping for current holdings, and a communication plan for participants. Avoid a transition during payroll year-end or open enrollment if possible, and keep a record of every fee and service promise in the final agreement.
Frequently asked questions
What is the best 401k company for a small business?
Fidelity Advantage 401k, John Hancock, and Principal are common starting points for small businesses, because they offer pooled or streamlined plans with administration support. The best choice depends on headcount, payroll system, and whether the owner wants advisor help. Request quotes from at least two providers and compare total fees for the same fund menu before deciding.
How much does a 401k plan cost an employer?
Costs vary by headcount, assets, fund menu, and services, and most providers quote rather than publish a single price. Recordkeeping, fund expenses, and any advisory or managed account fees together form the total. Ask for a fee disclosure that separates each charge, and check whether the employer or participants pay each fee, because that split changes the real cost to the business.
Should employees choose a target-date fund or build their own portfolio?
A target-date fund suits employees who want a diversified portfolio that adjusts with age and do not want to manage allocations themselves. Building a portfolio from index funds suits employees who understand asset mix and will rebalance regularly. Either approach can work, and the contribution rate usually matters more than the exact fund choice in the early years of saving.
What happens to a 401k when an employee leaves a job?
Options usually include leaving the money in the old plan if the balance meets the plan minimum, rolling it into a new employer's plan, rolling it into an individual retirement account, or taking a distribution. A direct rollover to another tax-advantaged account avoids immediate taxes and penalties in most cases. Check the old plan's rules, fees, and distribution options before deciding, and consider tax advice for a large balance.
Are 401k fees worth paying for managed accounts?
Managed accounts can help participants who want a personalized portfolio and ongoing adjustments without managing investments themselves. The fee adds to fund expenses, so compare it with the cost of a target-date fund, which also adjusts over time at a lower cost. A managed account may suit participants with outside assets or complex needs, while a target-date fund suits most savers.
Is this guide financial advice?
No. This guide compares providers and plan features for research purposes only, and it does not recommend a specific fund or provider for any individual. Investment choices depend on age, risk tolerance, other savings, and tax circumstances. Speak with a qualified financial adviser or tax professional before making a retirement decision.
Sources we checked (8)
- https://www.fidelity.com/retirement-ira/small-business/401k
- https://www.vanguard.com/retirement-plans
- https://www.schwab.com/retirement-plans
- https://www.empower.com/retirement-plans
- https://www.principal.com/retirement-plans
- https://www.troweprice.com/retirement-plans
- https://www.ml.com/retirement-plans
- https://www.johnhancock.com/retirement-plans
Is your product missing or out of date?
We review this list regularly. Vendors can request a listing, send updated pricing or ask about featured placement.
Shihab Mia · Founder, Rankite
Shihab has 5+ years in B2B and SaaS SEO. He writes Rankite's software buying guides from pricing pages, documentation and public user reviews. More about Shihab.