2022
Recordkeeping Survey
Industry Snapshot
401(k) Plans
The 401(k) plan remains the plan of choice for most private employers, and plan sponsors with this type of plan have the most choice among recordkeepers. These recordkeepers span different types of providers, so plan sponsors will want to decide whether it makes the most sense to work with an asset manager, an insurance company or another institution.
“When it comes to specific nuances for a traditional 401(k) plan, product features are fairly standardized and differentiation really occurs around service,” says Christopher Dall, vice president, senior product leader at PNC Institutional Asset Management. "For example, is there a dedicated representative at a call center?”
Knowing that most major recordkeepers can support best practices, sources note, means plan sponsors are using requests for proposals to investigate differentiators. Other questions a 401(k) RFP should cover, according to Dall, might focus on the degree of payroll integration, especially with a plan sponsor’s current payroll provider, and services around nonstandard payroll holdings, such as participant life insurance.
When it comes to supporting plan design, recordkeepers play an important role. Safe harbor 401(k) plans remain the preferred option for most plan sponsors, says Stuart Robertson, CEO and president of ShareBuilder 401k. More than 80% of ShareBuilder’s new plan sales have been safe harbor plans, a share slightly higher than in years past.
“That may be due to the employer’s need to have an attractive 401(k) benefit and ensure that they don’t have any restrictions for high earners in passing testing,” Robertson says.—B.B.
Total assets
Total plans
Total participants
621,473
78,223,485
$7.58T
Total assets
Total plans
Total participants
621,473
78,223,485
$7,579T
Total assets
Total plans
Total participants
621,473
78,223,485
$7,579T
Total assets
Total plans
Total participants
621,473
78,223,485
$7,579T
