Top 401k Providers for Startups and Small Businesses (2023)

The best 401k solutions along with key features, benefits, recommendations, and more.

Huda Idris
Technical writer, B2B software advisor, and marketing strategist

Contributing Experts

No items found.

"SSR is the best platform to discover top 1% HR tools. Their 10 years of HR Tech experience makes their reviews the best in the industry! Every time I speak about HR technology, SSR is my number one recommendation to for people pros."

Tracie Sponenberg
Chief People Officer, The Granite Group.

"SSR is my go-to place when it comes to researching HR tools. Their product reviews are real time-savers and trustworthy, and the online community is fantastic for bouncing questions and ideas off of others in the Talent space!"

Peter Stein
Building & Defining Recruiting Operations at Clear Street

"I trust SSR's HR Tech Reviews because they talk to so many experts, know the right questions to ask and uncover during in-depth product demos to come up with their best picks"

Stacie Justice
People + Strategy at Soundwide

We spend all day researching the best HR software so you don’t have to.  We never take money from vendors during our research phase and rely heavily on experts to refine our recommendations.  We may earn a fee if you click on vendor links on this page. Learn more about SelectSoftware Reviews

The Top 401k Software

Hand picked by our HR Technology experts after product testing, user research, and much debate - enjoy!

ForUsAll is a great choice for small and medium-sized businesses (SMBs) because it is very quick to set up and quite affordable.
401GO is comprehensive but also extremely affordable; it charges up $9 per participate per month without any base fee, administration fees, filing fee or compliance fee.
Human Interest is a scalable platform that works for both small businesses and large operations. It’s also quick to set up and offers transparent pricing.
Guideline is one of the biggest vendors in this space. It is robust, comprehensive and easy to use. Its low fees are also a bonus.
What sets Betterment apart is that it isn't just a 401(k) platform, it offers holistic advice across all saving and investing goals.
Ubiquity is very quick to set up. Any company can create an account and have it ready for use in as little as 15 minutes.
Paychex is an integrated platform that covers a great deal of HR needs. Having payroll and retirement benefits be managed on a single platform makes things a whole lot easier for businesses, especially small ones.

Ready to find the right 401k Providers for Startups and Small Businesses for you?

Tap into our database of hundreds of different HR tech stacks!
Takes 30 sec
By submitting this form, you consent to being contacted by Strazzulla, LLC (SelectSoftware Reviews) and up to 3 vendor partners by phone and/or email. You agree that Strazzulla, LLC may share your data with its partners to complete your request. You have the right to email us and have us delete your personal data at any time.

Based on your company size & location, we recommend:

No items found.
Oops! Something went wrong while submitting the form.

Introduction to 401k Providers for Startups and Small Businesses

If you run a startup, offering a retirement plan as part of your employee benefits package is a good way to attract and retain top talent, especially in today's increasingly challenging job market.

  • 88% of employees say a 401(k) is a must-have benefit when looking for a job.
  • 76% of workers who are offered a 401(k) retirement plan participate in it.
  • 6 in 10 workers (62%) are likely to switch to a nearly identical job if it offers a “retirement plan/a better retirement plan.” It’s important to note that this study found flight risk to be greatest among millennials as 71% of them shared that sentiment.

While the benefits of offering 401(k) plans to employees are many, administering those plans is fairly complex. Companies can easily set themselves up for penalties and audits if they don’t follow all the rules and requirements set in place by the Internal Revenue Service (IRS) and the Department of Labor (DOL). 

To reduce your liability and streamline the administration of your retirement benefits, you may want to consider adding a 401k solution to your HR Tech stack. This guide is meant to help your team pick the right 401(k) solution for your business while avoiding the relevant pitfalls.

Our Criteria: Here's how we chose who made the cut

We take research seriously. To make sure we’re offering our readers the very best solutions in a given software category, we are methodical, rigorous, and expansive in our research. We consult with HR professionals, vendors, and industry experts. We cut through the noise to bring you a carefully curated list of vendors, along with other essential information, to help you find the right software platform for your business. 

Here’s how we chose who makes the cut: 

Product: We believe in gaining a comprehensive understanding of a product before we recommend it, so we start by getting to know the software. Whenever possible, we meet with a senior executive (CEO or Head of Product) for a demo and Q&A. We also test the product ourselves to make sure it has a solid UI, intuitive workflows, and the features to make it a best-in-class offering. 

User feedback: We go straight to the source and compile feedback on user experience. Real-world input supports our commitment to diligence in our software evaluation methods and the products we recommend. Keeping up with the everyday experience of HR pros also puts new vendors on our radar, and it keeps us close to our community so we can better connect the right products to the right people.

Financial metrics: We are certified finance nerds, so we use all the data we can get our hands on to make selections for our guides. We comb through data for concrete statistics like retention rates, growth, profitability, and scalability. We evaluate the bottom line of each product because we know making a software purchase can put your reputation on the line. 

Best for a use case: Software is never a one-size-fits-all product. Sometimes the best solution is free or cheap. Other times it’s the one that is best for global companies or the one that’s sized right for early-stage startups. Keeping this in mind, we include solutions across the spectrum so our readers can find the best fit for their unique needs.

Here's more detail if you want to read more about how we research vendors. Our dedicated staff writers rely on hard data, impartial experts, and user feedback to ensure our reviews are helpful, truthful, and hopefully a pleasure to read!

Top 401k Software Solutions for Startups and Small Businesses

We track thousands of HR Tech solutions. Here are the best 401k Providers as of 2023.

ForUsAll

Review:

ForUsAll is a cloud-based 401(k) administration platform for small and medium-sized businesses. Acting as both your 3(38) and 3(16) fiduciary, ForUsAll ensures you stay compliant while automating manual tasks such as contributions, 401(k) loans, eligibility tracking, hardships, and notifications. You can integrate ForUsAll with most cloud-based payroll systems for an automatic synchronization of your data. Payroll integration also allows it to automatically update deferrals, notify new participants when they become eligible, and more.

ForUsAll

Pricing:

ForUsAll costs as follows: 

  • For the employer: Employers using ForUsAll pay a base monthly fee of $120 with an addition of $6 per participant per month.
  • For employees: Employees pay 0.50% of assets under management annually.

ForUsAll's pricing is not disclosed on their website. However, you may use their price calculator to get an estimate according to the size of your team and scope of your needs.

Best For

No items found.

401GO

Review:

401GO makes 401k administration easy and efficient with its automated and comprehensive platform for businesses of all sizes. Acting as your 3(16) and 3(38) fiduciary, 401GO handles everything from record-keeping, notifications, compliance testing, and day to day administration.

401GO

Pricing:

401GO has two pricing plans:

  • Basic: costs $9 per month per participating employee. This plan is designed for companies with fewer than 50 employees or new startup plans.
  • PLUS: costs $5-9 per month per participating employee. This is designed for larger businesses (50+ employees), existing 401k plans, or those with more complex needs.

401GO has two pricing plans:

  • Basic: costs $9 per month per participating employee. This plan is designed for companies with fewer than 50 employees or new startup plans.
  • PLUS: costs $5-9 per month per participating employee. This is designed for larger businesses (50+ employees), existing 401k plans, or those with more complex needs.

Best For

Small businesses looking to offer or enhance the administration of their employee retirement benefits.

No items found.

Human Interest

Review:

Human Interest is a comprehensive, affordable, and scalable 401(k) provider made for growing businesses. It offers Traditional and Roth 401(k)s, 403(b)s, Safe Harbor plans, and profit-sharing plans. As for investments, Human Interest offers a good selection of mutual funds and target-date funds.

Human Interest

Pricing:

Human Interest has three pricing plans:

  • Essentials: $120 per month base fee + $4 per eligible employee
  • Complete: $150 per month base fee + $6 per eligible employee
  • Concierge: $150 per month base fee + $8 per eligible employee

Human Interest has three pricing plans:

  • Essentials: $120 per month base fee + $4 per eligible employee
  • Complete: $150 per month base fee + $6 per eligible employee
  • Concierge: $150 per month base fee + $8 per eligible employee

Best For

Small and medium sized businesses looking to offer or enhance the administration of their employee retirement benefits.

No items found.

Guideline

Review:

Guideline is a full-service, user-friendly and affordable 401(k) platform. Offering both traditional and Roth 401(k) and acting as your 3(16) and 3(38) fiduciary, Guideline takes care of all your retirement plan needs from administration, investment management, compliance testing, and recordkeeping.

When it comes to investments, Guideline offers 40+ index funds including Vanguard funds and ones from other low-cost providers. Alternatively, participants can choose a managed portfolio with blended average fund fees under 0.07%.

Guideline

Pricing:

Guideline offers two pricing plans:

  • Startup: $39 per month (base fee) + $8 per participant 
  • Prime: $99 per month (base fee) + $8 per participant

Guideline offers two pricing plans:

  • Startup: $39 per month (base fee) + $8 per participant 
  • Prime: $99 per month (base fee) + $8 per participant

Best For

Small businesses looking to offer or enhance the administration of their employee retirement benefits.

No items found.

Betterment

Review:

Betterment is a cloud-based financial and investment advisory platform with 3(16) and 3(38) support. It gives personalized, fiduciary advice for retirement planning, wealth building, and other financial goals so participants can invest wisely and make the most returns. Employers can use Betterment for Business to offer Traditional 401(k), Roth 401(k), Safe Harbor plans, and profit-sharing plans.

Betterment

Pricing:

Betterment offers two pricing plans:

  • Standard: $42 per month (base fee) + $4 per participant 
  • Premium: $125 per month (base fee) + $4 per participant

Betterment offers two pricing plans:

  • Standard: $42 per month (base fee) + $4 per participant 
  • Premium: $125 per month (base fee) + $4 per participant

Best For

Small and medium sized businesses looking to offer or enhance the administration of their employee retirement benefits.

No items found.

Ubiquity

Review:

Ubiquity is a scalable platform for 401(k) administration. It facilitates contributions, profit-sharing, and allows for loans to be borrowed by employees against their retirement accounts. For an additional fee, Ubiquity also takes care of submitting your annual tax forms and providing tax compliance support. Do note though that it doesn’t select the investment funds for your portfolios. You will need to either choose a self-directed brokerage account or select a third-party broker/custodian.

Ubiquity

Pricing:

Ubiquity has 4 plans starting at $75 per month: 

  • Single(k): For businesses with no full-time employees except the owner/spouse/partner
  • Saver(k): Expert-picked plan provisions in one easy-to-manage package
  • Express(k): Small businesses and startups looking for simplicity and tax savings
  • Custom(k): Business owners who want a fully customized plan to maximize their tax savings

The exact pricing of the above plans isn’t disclosed on Ubiquity’s website. However, you may reach out to their sales team for an estimate according to the size of your team and scope of your needs.

Ubiquity has 4 plans starting at $75 per month: 

  • Single(k): For businesses with no full-time employees except the owner/spouse/partner
  • Saver(k): Expert-picked plan provisions in one easy-to-manage package
  • Express(k): Small businesses and startups looking for simplicity and tax savings
  • Custom(k): Business owners who want a fully customized plan to maximize their tax savings

The exact pricing of the above plans isn't disclosed on Ubiquity's website. However, you may reach out to their sales team for an estimate according to the size of your team and scope of your needs.

Best For

No items found.

PayChex

Review:

Paychex is a robust all-in-one payroll and benefits system. It offers several retirement plan options including 401(k), 403(b), SOLO 401(k) for sole proprietors, and SIMPLE IRA. From plan enrollment to maintenance, Paychex takes care of the details for any size business.

PayChex

Pricing:

Paychex’s pricing isn’t listed on their website. However, you may reach out to their sales team for an estimate according to the size of your team and scope of your needs.

PayChex's pricing is not provided on their website, but the process to get a quote is pretty quick and simple.

Best For

No items found.

Benefits of Using a 401(k) Software

  • Affordability: Using a software solution to administer your 401(k) plans is significantly cheaper than hiring in-house HR personnel to assume that responsibility or engaging a financial services provider that charges hourly or a fixed sum as a monthly retainer.
  • Automation: The manual management of 401(k) plans is a huge administrative burden on small companies, not to mention all the mistakes and errors that are inevitable with manual labor. A 401(k) software automates plan administrations and cuts down on human errors, allowing business owners to focus on running their company while still providing great retirement benefits to their employees. 
  • Ease of use, both for employees and employers: 401k software simplifies retirement plan administration for employers and signups for employees. Through them, employees can define the terms for their retirement plans, including contribution amounts, loans, and investment choice, while employers define the terms for matching their employee contributions, vesting, profit sharing, and more. 
  • Compliance: 401K software helps businesses navigate the complex compliance rules set by the IRS and DOL. This includes having all retirement plan options meet the Employee Retirement Income Security Act (ERISA) guidelines such as fiduciary accountability and non-discrimination.

Pro Tips on Top 401k Software

Common Mistakes Made When Buying a 401(k) Software

It’s very easy to make mistakes when choosing a 401(k) solution if you don’t thoroughly research what's available on the market and carefully consider the needs and budget of your business. Here are some of the most common mistakes businesses make:  

  • Not checking for hidden fees: 401(k) plans come with various fees that aren't always evident to the investor but can greatly impact an account's return over the long-term. Reflecting mostly administrative and investment management costs, these fees can range from 0.5% to 2%, depending on the size of the 401(k) plan, the number of participants, and the plan provider. Always check with 401(k) software vendors on their additional fees according to your team size. 
  • Choosing a 401(k) software that doesn’t integrate with your payroll provider: Many employers overlook payroll integration when picking their 401(k). Without it, employers are responsible for maintaining deductions, tracking eligibility, and manually entering data -  wasting a tremendous amount of time and causing costly errors.
  • Spending money on features you don’t need: ‘Premium’ doesn’t always mean ‘better’. Many small and medium-sized businesses select a premium, enterprise-grade plan because of all the feature additions they usually come with, but in reality, only half of the features end up being used. We advise that you always invest selectively and wisely.
  • Making long-term commitments before thoroughly testing a solution: Before buying a one-year subscription to a product or something even more long-term like a perpetual license - i.e. single-time license purchase -, ensure that you take the time to test the solution and verify that it’s the one for you. This saves you from the potential hassle of going back and forth with the vendor on their cancellation and refund policy. 
  • Choosing a 401(k) software that isn’t scalable: Your business may see exponential growth within just a matter of months. It may also experience financial hardships, requiring you to downsize your operation. No matter what the future holds for your business, you’ll definitely need a 401(k) software that’ll grow or shrink accordingly.

Pricing Models

Like many software products out there, the cost and pricing models of 401(k) solutions vary from one vendor to another. Some vendors charge a flat rate fee per participant per month while others offer annual subscription fees. Monthly fees range from $4 - $9 per user per month and some include a $39 - $150 base fee per month in addition to the user fees. Furthermore, there may also be a training/setup fee, maintenance fees as well as an investment portfolio fee if applicable.

Key Features of 401(k) Software

401(k) software can vary in terms of their overall offerings and target audience. While that may be the case, the following are some of the most essential features you can expect from most business-tailored 401(k) solutions available today:

  • Eligibility tracking and employee onboarding: Employers can set 401(k) eligibility criteria that employees must meet to participate such as minimum age required and minimum hours of service required. It’s important to note that these requirements are not completely at the employer’s discretion to define and are subject to Internal Revenue Code regulation. 401(k) solutions help you stay compliant with IRC rules, determine eligible employees, and onboard them instantaneously - avoiding penalties and all the hassle of physically going through each employee’s file to check whether they are eligible.
  • Records management: 401(k) software provides you with a single interface to manage and track all of your employee records, including balances, transactions, withholdings, and salary deferrals. Detailed reports of this data can also be auto-generated.
  • Integration with payroll providers: Top 401(k) software should integrate with most popular payroll providers to import your employees’ data, including their defined deferral amount, and automatically deduct 401(k) contributions. Having this integration significantly reduces the amount of work involved in handling and reporting employee deferrals with each pay run. 
  • 3(16) plan administrator and 3(38) investment manager: 401(k) software reduces your liability by acting as your 3(16) plan administrator, ensuring all plans are in compliance with ERISA guidelines while handling the reporting to plan participants and the IRS, as well as your 3(38) investment manager, taking on the responsibility and liability of selecting retirement appropriate funds for participants to allocate their investments.
  • Frequent nondiscrimination compliance testing: Nondiscrimination tests ensure that a 401(k) plan doesn't favor highly compensated employees (HCEs) or key employees (such as owners) so everyone in the company gets a fair shot at retirement saving. There are four nondiscrimination tests a 401(k) plan sponsor must pass every year: the Coverage test, the Actual Deferral Percentage (ADP) test, the Actual Contribution Percentage (ACP) test, and the Top-Heavy test. Instead of waiting until the end of the year to assess if a plan is compliant, 401(k) solutions perform these tests regularly to keep your plans in constant qualified status.
  • Safe harbor plans: A 401(k) solution should provide users the option of creating Safe Harbor plans, which are similar to traditional 401(k) plans, except that employer contribution is a mandatory requirement. The main advantage of a Safe Harbor plan is that it is generally exempt from the four IRS nondiscrimination tests, which means key employees and HCEs can receive a lot more in contributions (up to the annual limit defined by the IRS) without compromising the plan’s compliance status.
  • Hardship withdrawals: A hardship withdrawal is a distribution taken by a participant before the age of 59 ½ due to an immediate financial need or emergency. Whether or not participants can make these withdrawals is up to the sponsor of the 401(k) plan to decide, however, a 401(k) software should provide the option for such withdrawals regardless.
  • Loans: Similar to hardship withdrawals, participants can take loans from their 401(k) savings that are later repaid according to a defined repayment schedule. While you are not required to include loan provisions in your plan as its sponsor, a 401(k) software should provide you the option to do so.  
  • Matching contributions, vesting, and profit-sharing: With a 401(k) software, contributions can be automatically scheduled to become vested in participants’ 401(k) accounts each pay run. They also provide the option for profit sharing so you can make tax-deductible contributions to eligible employees, either based on their compensation or as a fixed contribution.
  • Owner Participation: Depending on the type of income you receive, you may be able to participate in your company’s 401(k) plan. The majority of 401(k) softwares allow self-employed business owners and their spouses to participate in said plan if they’re registered as one of the following entity types: Limited Partnerships, Partnerships, LLCs taxed as Partnerships, Single Member LLCs, and Sole Proprietorships
  • Tax filing: A 401(k) software takes care of tax filing and all of the otherwise tedious paperwork for you. This includes preparing and filing the annual Form 5500 and extension requests to the IRS and the DOL, as well as providing Form 1099-R to participants the January after the distribution year then submitting the information reported on the 1099-R to the IRS.

Questions to Ask During Demo Sessions

When shopping for a 401(k) software (or any solution for that matter), we always recommend that you schedule as many demos as possible with different vendors to make sure their solution is compatible with the needs of your business. Here are a few questions you can ask during your demos: 

  • What type of retirement plans can I offer through your software?
  • Does the software perform compliance testing? If so, how often are they performed? 
  • Does your system integrate with my payroll system? 
  • Do you provide any training on the IRS and DOL’s regulations? 
  • What type of funds do you offer for participant investment? 
  • Can you walk me through what employees see in their accounts?
  • What processes can I automate through your software?
  • How easy is it to implement your solution, and would I be able to do it myself?
  • What business solutions does your software integrate with?
  • What metrics have you used to prove the effectiveness of your solution, and where can I see these in my analytics dashboard?
  • How much does the software cost for my team size?

Implementing a 401(k) Software

Implementing a 401(k) software is relatively easy. Once you’ve chosen a product and purchased a plan that meets your needs, you can create an account and start defining your retirement plans by setting the terms for employee contribution matching, vesting, profit sharing, etc. Employees are then invited to sign up and define the terms for their retirement plans, including contribution amounts, loans, and choice of investment. Depending on the platform, you may be assigned an account manager and/or have access to a robo-advisor for investment advice.

In terms of deployment, the majority of 401(k) solutions are cloud-based, delivered through a software-as-a-service (SaaS) infrastructure. Getting started with a cloud-based solution is very quick as they all allow you to create an account and start configuring your instance right away.

On the other hand, some 401(k) solutions are self-hosted (on-premise). Self-hosted solutions generally take longer to set up, and depending on your chosen vendor, you may need to consult them regarding their solutions’ compatibility with your current hardware and installation process or better yet, have them do the installation for you.

401k Providers FAQs

What is 401k software?

401k software are solutions designed to administer retirement plans quickly and efficiently, avoiding IRS penalties and streamlining your HR processes.

What benefits does 401k software provide?

Benefits of 401k software include affordability, automation of manual processes, ease of use for employers and employees, and simple compliance regulation.

What extra features do 401k software solutions provide?

401k software solutions also provide personalized fiduciary advice, profit-sharing plans, Safe Harbor plans, investment management, compliance testing, and notification systems.

Final Thoughts

401(k) software solutions are an affordable and easy way for small businesses to offer retirement benefits to their employees. Before choosing a vendor, we always advice that you:

  • Identify the type of retirement plan you want to offer your employees then select a software product that supports it;
  • Request a trial account to test the platform’s features first-hand and see if they cover all of your needs;
  • Schedule demo sessions with different vendors to get all of your questions answered.

Stay on top of what really matters in HR and People Tech. Subscribe to our newsletter to keep up on the latest news, trends, and culture.

We put in the effort to make this guide awesome

28
Hours Researched
2
Experts Consulted
14
Vendors Reviewed

Featured in

Looking for HR Tech Advice?  Join our community

Ask questions, share knowledge, find new job opportunities, network and more in our closed HR Tech Buyers Community

Join 20,000 HR Tech Nerds who get our weekly insights

Ready to find the right HR Software for you?

By submitting this form, you consent to being contacted by Strazzulla, LLC (SelectSoftware Reviews) and up to 3 vendor partners by phone and/or email. You agree that Strazzulla, LLC may share your data with its partners to complete your request. You have the right to email us and have us delete your personal data at any time.

Thank you! We'll get in touch with you shortly

Top 3 Applicant Tracking System For You:

Top 3 HRIS Systems & Software For You:

Top 3 Rewards & Recognition For You:

Top 3 Employee Engagement For You:

Top 3 Video Interview For You:

Oops! Something went wrong while submitting the form.