Using Fidelity directly for 401(k) vendor

Paige · May 2005

We're researching various options for 401(k) vendors and learned that Fidelity will administer a plan for us directly (rather than having to go through a broker). The offer the service at a much cheaper rate than using a broker so it looks very attractive.

Does anyone else do this? Have you had good or bad luck with this type of arrangement (whether it's with Fidelity or another fund company)?

Thanks.

clackey · May 2005

We did just that last year. We went directly to 401k providers. We checked Fidelity, Vanguard, American Express and ADP. We decided to go with Fidelity and I am glad we did. Their services are great.

hr traci · May 2005

We switched to Fidelity direct a couple years ago when we were having service problems with our past direct relationship (Strong).

We explored about 8 different alternatives and felt the most comfortable and secure with what Fidelity offered.

It was an easy transition and rates are lower. We also enjoy the number of fund options available through Fidelity. The plan sponsor services are pretty good, but it seems that the employee education piece takes more effort on our part to coordinate. We are a small employer though, (just under 100 ee company wide), so maybe it would be a different scenario for a larger company.

Good luck!

ritamcguire · May 2005

We deal directly with Principal Financial Group and receive excellent service. Their daily support both to me as an employer and individually to our employees is superb. They visit our plants for excellent presentations whenever we ask them to.

I've never dealt with any other company so I'm not sure how their services equate to the industry in general, but we are very satisfied.

AJ SPHR · May 2005

I've never worked with a broker for any benefit plan. At my previous employer, we had Fidelity as our recordkeeper and had great service. I recommend Fidelity and also recommend eliminating the broker.

E Wart · May 2005

Definitely FIRE your broker. You don't need them and it is costing you (and most importantly your employees) to have them in the middle of htings.
in 2000 we changed to Fidelity (from a bank and TPA) and couldn't be more pleased. (We conisidered up to about during the process and narrowed it down to Fidelity and Vanguard. Either of these would be great for you.)
We still make the entire process a little combersome since was are manufacturing and a lot of our plant people don't have computers.
However, it is so easy and economical to administer. (They do our tax filing and testing as well.) They will hold your hand though the whole process and are there to answer your questions and help you at any time. (Contact me [email]ewarthen@newcombspring.com[/email]) if you have any more questions on the transition, the vendor or anything.) I am a HUGE 401(k) advocate.
E Wart

Using Fidelity directly for 401(k) vendor

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