Announcement

Collapse
No announcement yet.

401K/Profit sharing plan recommendations?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • 401K/Profit sharing plan recommendations?

    Our medical practice has recently shifted our 401K and profit sharing plan to ADP and it has been less than stellar. This move was made without my input and has now become an issue for many reasons. The plan allows the partners to open a self directed account at TD Ameritrade but only up to 70% of assets. Which begs the question why did we not use TD Ameritrade for the plan. Again, I was not invited into the conversations, but now I am looking at options to present to my partners.

    Does anyone have a good plan administrator that they are happy with, particularly one with plentiful investment choices and self directed capacity?

     

     

  • #2
    I would advise going directly with Vanguard or Fidelity. Minimal administrative/bookkeeping fees, particularly Vanguard. Can choose fund lineup and allow a brokerage link option. Fidelity a little more restrictive with rules if you have a complex situation or grandfathered docs outside the plan.

    Comment


    • #3
      We've been with Schwab for over 15 years for husband's practice's 401k.  Great experience.  No regrets.

      Comment


      • #4
        Depends on the size of the practice and the balance of all accounts in the 401k plan. The larger custodians Fidelity, Schwab, TD Ameritrade, Vanguard, etc... do not act as administrators directly for small 401k plans. However, they will all act as custodians for Third Party Administrator (TPA) plans. They may even have co-branded plans such as Vanguard does with Ascensus.

        The reason your practice went with ADP was probably for convenience of payroll integration and little to no administrative cost. Usually, when you have a plan with little to no administrative costs, the participants are going to pay for it with poor fund choices with higher expense ratios. However, this is really a matter of pay me now or pay me later. The practice needs to suck it up and pay a few thousand in administrative costs if you want a really good plan for participants.

        Comment


        • #5
          Thank you all for the input.

          Comment


          • #6
            My group uses John Hancock.  It has a self-directed option, but the the expense ratios and fees are pretty high.  I would avoid as there are definietly better options out there.

             

            Comment

            Working...
            X