Looking for Low Cost 401(k) Plan Providers

[clatoden99]

The company I work for is getting screwed by Merrill Lynch. Our 401(k)'s average expense ratio is 0.88% and its all mutual funds except one S&P 500 index fund.

I wrote a report to show how we are getting screwed and how if we got out of actively managed funds and into low cost index funds it would not only save the employees more money it would improve the returns and save the company money. Upper management has invited me to speak at the next 401(k) committee meeting! They seem open to change.

My question to you is.. What reputable companies out there offer low cost index funds, preferably Vanguard? Also it's a bonus if they handle ESOP companies. I've reach out to My Ubiquity (terrible online reviews) and Employee Fiduciary. Any others? I'd like to have many option on the table for them.

[bjl584]

You won't be able to open a 401K on your own. You need your employer for that.

You can do a ROTH, an IRA, and/or a taxable brokerage account however.

Vanguard and Fidelity are probably the most recommended on this forum.

[disneysteve]

The big 3 are Vanguard, Fidelity, and T. Rowe Price. I would recommend they use one of those.

Good for you for speaking up and getting heard.

[scfr]

Sorry I can't point you to specific plan sponsors. (I know Vanguard now sponsors 401k plans but I don't know about ESOPs.)

But perhaps you could look at BrightScope and contact some companies that have top-rated plans to see if they would share the name of their plan sponsor(s) with you? (Or identify which companies' plans look good and then do an internet search to see if you can find the names of their plan sponsors?)

https://www.brightscope.com/ratings/

[scfr]

You won't be able to open a 401K on your own. You need your employer for that.

It sounds like OP's employer is open to suggestions from OP on possible changes to their current 401(k), specifically changing the plan sponsor/provider.

[Jluke]

great job on voicing your concerns to your employer about 401k costs.

interesting article on 401k and mutual funds... thoughts?

http://www.msn.com/en-us/money/careersandeducation/why-mutual-funds-and-401-k-s-may-be-hazardous-to-your-wealth/ar-BBvLimf?li=BBnbfcN

[sv2007]

The company I work for is getting screwed by Merrill Lynch. Our 401(k)'s average expense ratio is 0.88% and its all mutual funds except one S&P 500 index fund.

I wrote a report to show how we are getting screwed and how if we got out of actively managed funds and into low cost index funds it would not only save the employees more money it would improve the returns and save the company money. Upper management has invited me to speak at the next 401(k) committee meeting! They seem open to change.

My question to you is.. What reputable companies out there offer low cost index funds, preferably Vanguard? Also it's a bonus if they handle ESOP companies. I've reach out to My Ubiquity (terrible online reviews) and Employee Fiduciary. Any others? I'd like to have many option on the table for them.

The 2 startups I was with both used T.Rowe Price for their 401ks (if I remember correctly, it was back when online management wasn't all that widely available yet): one had 30 people and the other had 60 people.

[FLA]

I was thrilled when we finally got Vanguard funds