2019
Recordkeeping Survey

Five hot-button issues plan sponsors need to cover in provider searches.

Industry Snapshot

401(k) Industry Snapshot

The 401(k) plan is the largest workplace savings vehicle and now accounts for more than, on average, 65% of all defined contribution (DC) plans, participants and assets, but the market is far from uniform. Almost 90% of 401(k)s each have less than $5 million in assets, but these plans account for less than 20% of 401(k) participants and less than 10% of 401(k) assets. Stated differently, the 647 largest 401(k)s—i.e., those that have over $1 billion in assets—control 49% of 401(k) assets and nearly 33% of all participants.

Not surprisingly, the industry has evolved to cater to the needs of plans both large and small, with larger plans more likely to be sold direct and smaller plans typically sold and serviced through retirement plan advisers, who offer added value to sponsors lacking the knowledge or time to maintain their plan.

Overall, fiduciary concerns are driving a more expansive review of 401(k) provider capabilities. Sponsors have always taken an interest in service offerings related to potential administrative headaches such as compliance testing and Form 5500 preparation and filing. But many requests for proposals (RFPs) now explore other areas of fiduciary importance, including fiduciary outsourcing options, cybersecurity protocols and disclosure of ancillary business revenue that might be connected to plan administration. —BOK

Growth in Total 401(k) Plan Assets ($mm)

2010
$2,597,292
2011
$2,878,493
2012
$2,910,393
2013
$3,088,538
2014
$3,946,545
2015
$4,289,045
2016
$4,231,432
2017
$4,586,095
2018
$5,143,667
2019
$4,930,732

Share of Total Defined Contribution Market

Total defined
401(k) plan assets
$4,930,732
Total defined
401(k) plans
550,871
Total defined
401(k) plan participants
70,211,519
By Plan Size Assets ($mm)* Total* Participants*
<$5mm $440,125 479,582 12,058,976
$5mm – $25mm $492,559 53,323 9,567,701
>$25mm – $100mm $453,242 13,528 8,018,188
>$100mm – $500mm $727,704 3,821 10,467,575
>$500mm $2,819,454 1,235 25,950,421
† Not all providers report complete data; therefore, data segmented by plan size will not equal the corresponding overall total.