401(k) Software

401(k) Software Overview

401(k) administration software provides a simple solution for businesses to administer 401k retirement plans for employees. Offering a 401(k) plan to your employees can help increase employee satisfaction and retention. However, you can set your company up for penalties and audits if you don’t follow all the complex legal requirements set forth by the IRS and the Department of Labor (DOL). 401K software helps you design a 401K plan that meets your company goals while staying in compliance.

401K software allows employees to set the terms for their retirement plans, including contribution amounts, loans, and investment vehicles like mutual funds. These services also allow employers to designate terms for matching, vesting, and profit-sharing. They act as a go-between for the employer and the record keeper who holds the plan’s assets.

Employers must ensure that their 401K plans meet Employee Retirement Income Security Act of 1974 (ERISA) guidelines. The two most important ERISA guidelines are fiduciary liability and non-discrimination. Fiduciary liability involves anyone who makes decisions regarding the management of assets is considered a fiduciary and can be held personally liable if it is determined that the fiduciary did not act in the best interest of the plan participants. Non-discrimination includes a series of rules and annual tests set forth by the IRS to ensure a company’s plan does not discriminate against non-highly compensated employees (NHCEs).

401(k) Products

(1-13 of 13) Sorted by Most Reviews

The list of products below is based purely on reviews (sorted from most to least). There is no paid placement and analyst opinions do not influence their rankings. Here is our Promise to Buyers to ensure information on our site is reliable, useful, and worthy of your trust.

Human Interest

Human Interest headquartered in San Francisco offers their cloud-based 401k administation platform for employers featuring flexible plan design and a dedicated account manager.

Key Features

  • Plan Flexibility (7)
    60%
    6.0
  • Compliance Maintenance (8)
    55%
    5.5
  • Payroll Integration (8)
    30%
    3.0
SurePayroll

SurePayroll offers an online payroll service that lets small business owners run payroll anywhere, anytime. The vendor automatically pays and files federal, state and local payroll taxes.

Key Features

  • Pay calculation (12)
    44%
    4.4
  • Direct deposit files (11)
    37%
    3.7
  • Salary revision and increment management (10)
    23%
    2.3
Guideline

Guideline headquartered in San Mateo offers a cloud-based 401k management software for businesses priced on a per employee basis.

NewRetirement

NewRetirement provides an advanced financial planning and management platform designed for financial services companies, plan providers, employers, and individuals.Based on AI technology, the comprehensive planning and modeling engine considers thousands of scenarios, enabling individuals…

Insperity Retirement 401(k)

Insperity Retirement services deliver comprehensive recordkeeping and administration to companies with five to 500+ employees.

401GO

401GO builds 401k platforms for small businesses.

AB401k from Creative Planning

AB401k (or America's Best 401k), which is now from Creative Planning since the 2019 acquisition, is a 401k service solution for companies that integrates with popular payroll systems, which includes benefits enrollment training and workflows, and full administration support.

ForUsAll

ForUsAll headquartered in San Francisco offers their automated 401k administration software for businesses.

Actuarial Systems Corporation (ASC) Retirement Plan Software

Actuarial Systems Corporation (ASC) headquartered in Sylmar offers Retirement Plan Software, including Defined Contribution 401k software, and other tools.

Congruent Solutions CORE Platform

Congruent’s CORE platform helps plan providers and TPAs to manage, administer, and maintain retirement plans and policies.

PensionBenefitsXG

basys headquartered in Baltimore offers PensionBenefitsXG, allowing employers or retirement providers to administer simple or complex retirement and pension plans (e.g. 401k).

Wolters Kluwer ftwilliam.com

Wolters Kluwer offers ftwilliam.com, a cloud-based employee benefits and pension software solution supporting document sharing and distribution, as well as tools to allow users to securely send messages and files back‐and‐forth to clients and e-sign documents helping streamline retirement…

Vestwell

Vestwell is a fintech engine powering savings and investment programs for small businesses, that helps to close the savings gap by offering a solution to save for the critical aspects of life - retirement, education, and healthcare. Vestwell currently powers nearly 25,000 small businesses,…

Learn More About 401(k) Software

What is 401(k) software?

401(k) administration software provides a simple solution for businesses to administer 401k retirement plans for employees. Offering a 401(k) plan to your employees can help increase employee satisfaction and retention. However, you can set your company up for penalties and audits if you don’t follow all the complex legal requirements set forth by the IRS and the Department of Labor (DOL). 401K software helps you design a 401K plan that meets your company goals while staying in compliance.

401K software allows employees to set the terms for their retirement plans, including contribution amounts, loans, and investment vehicles like mutual funds. These services also allow employers to designate terms for matching, vesting, and profit-sharing. They act as a go-between for the employer and the record keeper who holds the plan’s assets.

Employers must ensure that their 401K plans meet Employee Retirement Income Security Act of 1974 (ERISA) guidelines. The two most important ERISA guidelines are fiduciary liability and non-discrimination. Fiduciary liability involves anyone who makes decisions regarding the management of assets is considered a fiduciary and can be held personally liable if it is determined that the fiduciary did not act in the best interest of the plan participants. Non-discrimination includes a series of rules and annual tests set forth by the IRS to ensure a company’s plan does not discriminate against non-highly compensated employees (NHCEs).

401k Software Features

Useful features offered by most 401k software vendors include:

  • Eligibility tracking
  • Records management
  • Integration with third-party applications, including payroll providers
  • Regulatory compliance
  • 3(38) or 3(21) fiduciary status to manage liability
  • Compliance testing for IRS nondiscrimination rules
  • Safe harbor plans
  • Loans and hardship withdrawals
  • Employee matching, vesting, and profit-sharing
  • Owner participation
  • Tax filing and creation of report materials

These features are not offered by every vendor, but are helpful to have:

  • Training on changing IRS regulations
  • Reporting and benefits statements
  • Employee self-service portal
  • Dedicated account manager
  • Mobile access

401k Software Comparison

Consider these factors when comparing 401K software:

  • Company Size: One of the most important factors to keep in mind is the size of your company. Guideline, for example, is sufficient for a small business with minimal 401k needs but may have limitations when serving a more sophisticated plan. Therefore, researching the size and type of businesses vendors are more suited for is an important step in deciding.
  • Ease of Use: It’s important to research how easy the platform is to use for both administrators and employees. Similarly, the amount of support a vendor offers upon encountering an issue is a useful feature that users should look for.

Start a 401k software comparison here

Pricing Information

Some vendors charge a flat rate fee per participant per month while others offer annual subscription fees. Monthly fees range from $4 - $8 per user per month and some include a $40 - $120 base fee per month in addition to the user fees. Employees may pay an investment portfolio fee to the vendor as well.

401(k) Software Best Of Awards

The following 401(k) Software offer award-winning customer relationships, feature sets, and value for price. Learn more about our Winter Best Of Awards methodology here.

Best Of Winter 2023 Awards Winners for the 401(k) category. For Best Relationship, first place is Human Interest. For Best Feature Set, first place is Human Interest. For Best Relationship, first place is Human Interest.

Related Categories

Frequently Asked Questions

How does 401K software relate to fiduciary liability and non-discrimination?

401K software helps limit fiduciary liability. It also handles calculations and transactions in the case of a failed non-discrimination test.

What are the benefits of using 401K software?

Users investing in 401k software are able to encourage applicants and retain current employees by offering a wide range of savings, retirement benefits, and investment opportunities such as mutual funds. These products also allow users to avoid penalties and audits by staying in compliance with complex legal requirements set forth by the IRS and the Department of Labor.

What does 401k software do?

401k software allows businesses to administer 401k retirement plans for their employees while allowing them to be in compliance with standards issued by the IRS. They allow a business to offer retirement and investment benefits that make working for them more rewarding. Through these systems, businesses are able to act as a fiduciary working in the best interest of the participant.

How much does 401K software cost?

Some vendors charge a flat rate fee per participant per month while others offer annual subscription fees. Monthly fees range from $4 - $8 per user per month and some include a $40 - $120 base fee per month in addition to the user fees. Employees may pay an investment portfolio fee to the vendor as well.

What is the best 401K software?

The 401K software with the most reviews on TrustRadius is Human Interest. Guideline is another 401K software that received positive reviews from small businesses and mid-size companies.