Using Fidelity directly for 401(k) vendor
Paige
153 Posts
We're researching various options for 401(k) vendors and learned that Fidelity will administer a plan for us directly (rather than having to go through a broker). The offer the service at a much cheaper rate than using a broker so it looks very attractive.
Does anyone else do this? Have you had good or bad luck with this type of arrangement (whether it's with Fidelity or another fund company)?
Thanks.
Does anyone else do this? Have you had good or bad luck with this type of arrangement (whether it's with Fidelity or another fund company)?
Thanks.
Comments
We explored about 8 different alternatives and felt the most comfortable and secure with what Fidelity offered.
It was an easy transition and rates are lower. We also enjoy the number of fund options available through Fidelity. The plan sponsor services are pretty good, but it seems that the employee education piece takes more effort on our part to coordinate. We are a small employer though, (just under 100 ee company wide), so maybe it would be a different scenario for a larger company.
Good luck!
I've never dealt with any other company so I'm not sure how their services equate to the industry in general, but we are very satisfied.
in 2000 we changed to Fidelity (from a bank and TPA) and couldn't be more pleased. (We conisidered up to about during the process and narrowed it down to Fidelity and Vanguard. Either of these would be great for you.)
We still make the entire process a little combersome since was are manufacturing and a lot of our plant people don't have computers.
However, it is so easy and economical to administer. (They do our tax filing and testing as well.) They will hold your hand though the whole process and are there to answer your questions and help you at any time. (Contact me [email]ewarthen@newcombspring.com[/email]) if you have any more questions on the transition, the vendor or anything.) I am a HUGE 401(k) advocate.
E Wart