Best 401(k) Software
401(k) software provides a simple solution for businesses to administer 401k retirement plans for employees.
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Human Interest headquartered in San Francisco offers their cloud-based 401k administation platform for employers featuring flexible plan design and a dedicated account manager.
OnPay's payroll and HR is designed for people who want to spend more time running their business, and less on back-office tasks. The application aims to enable users to:
• Run payroll
• Automate taxes
• Let employees do more themselves
• Simplify HR processes
• Offer benefit…
Guideline headquartered in San Mateo offers a cloud-based 401k management software for businesses priced on a per employee basis.
Ubiquity offers 401k plan design and consultation offering access to broad investment options (Vanguard, Schwab, Fidelity, etc.), that integrates with a number of payroll systems.
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.
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.
Congruent’s CORE platform helps plan providers and TPAs to manage, administer, and maintain retirement plans and policies.
basys headquartered in Baltimore offers PensionBenefitsXG, allowing employers or retirement providers to administer simple or complex retirement and pension plans (e.g. 401k).
Actuarial Systems Corporation (ASC) headquartered in Sylmar offers Retirement Plan Software, including Defined Contribution 401k software, and other tools.
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,…
ForUsAll headquartered in San Francisco offers their automated 401k administration software for businesses.
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…
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.
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.