How to find the right 401(k) provider: An employer’s guide

Finding the right 401(k) provider for your business may seem relatively straightforward, but this isn’t always the case. Plan providers can vary in terms of cost, services, and technology, which means you often have to do the legwork and due diligence to find a plan provider that aligns with your business needs. 

This article can help make the selection process easier to understand. To help you evaluate how a 401(k) provider stacks up against the competition, we’ll dive into the qualities that plan providers can offer and which ones are often prioritized. 

What should you look for in a 401(k) plan provider? 5 key considerations

1. Fees and overall cost

One of the most common questions employers ask about a 401(k) provider is the overall cost and fees they charge. Fees can vary depending on the service level and features of your plan, but this is a key area to evaluate and monitor. Beyond the typical recordkeeping and participant fees, other fees may not be obvious—or can be considered indirect—to employers. 

Below are some of the fees you should take into account when comparing 401(k) plan providers.

• Recordkeeping fees: A recordkeeping fee is typically a recurring monthly or annual fee that plan providers charge for administering your plan.

• Revenue sharing fees: Revenue sharing fees are charged by or added to the expense ratios of mutual funds. These fees may be paid to the recordkeeper instead of the investment manager to help offset the cost of your 401(k) plan administration and may be overlooked as they’re factored into overall costs. Generally, Human Interest Advisors does not recommend any investments with these fees in our 3(38) managed lineup.¹

• Transaction fees: These are fees charged for specific services, such as plan termination fees, distribution fees, and loan initiation fees. 

• Mutual fund fees: Mutual funds, which are the primary investment options in most 401(k) plans, charge an annual fee to cover their operating expenses. This fee, known as an expense ratio, pays for fund management and is expressed as a percentage of your investment in the fund. 

Already have a 401(k) plan? Benchmarking your existing plan against other providers can help determine if your plan’s services and fees are competitive with other plans—or if it may be time to begin evaluating other 401(k) plan providers. 

2. Assistance with fiduciary responsibilities 

Overseeing a retirement plan requires managing several recordkeeping and fiduciary duties, and therefore potentially a lot of manual paperwork and liability for the employer. Recordkeeping services that can take up a lot of an employer’s time and effort include annual nondiscrimination testing, filing the Form 5500, and responding to IRS audits. 

If you need extra support with daily administrative functions, your plan provider may offer assistance as a 3(16) fiduciary services provider. 3(16) services are meant to offset the legal responsibilities for managing the regulatory and administrative aspects of a 401(k) plan. The types of tasks each provider administers can be unique, so it’s important to know what services they offer and how they compare to other providers.

Some examples of 3(16) fiduciary responsibilities a plan provider might take on are authorizing withdrawals, ensuring a loan taken out against a 401(k) meets IRS guidelines, and securing a fidelity bond. 

3. Modern technology

It’s common now for plan providers to have modern technologies that can help streamline and simplify plan administration for both you and your employees. For example, a plan provider (like Human Interest) that integrates with your payroll provider automatically updates changes in contribution amounts when an employee initiates these updates. This allows employers to better ensure accuracy regarding retirement and contribution data, without manual coordination with their payroll provider. 

To help employees stay on track with their long-term goals, some 401(k) plans provide automated portfolio rebalancing. This can be especially helpful for those who may not have the time or expertise to manage their own investments, as it seeks to keep their portfolio aligned with their chosen strategy. It’s important to remember that while this service can be a useful tool for managing risk, it doesn’t guarantee a profit or protect against loss.

Explore the Human Interest platform: Human Interest’s administrator dashboard provides employers with a comprehensive view of their plans. Our platform allows for a more streamlined onboarding experience and comes with built-in investment services and notifications to make it easy for you and your employees to start saving for retirement. 

4. Customer support and employee experience

In addition to the plan administrator, the employee experience is just as important. It’s likely that at some point, both you and your employees will need to rely on your plan provider’s customer support service. A good customer service team should help smoothly onboard you and your employees to their new 401(k) plan and assist you with any questions or concerns you may have with managing your plan. 

Lastly, dependent on your needs, it can be beneficial to search for a plan provider who has a vast suite of resources to offer your employees, which can be especially valuable for smaller businesses. 

(k)ickstart classroom™ is a free, 10-part educational series designed to help savers at any financial level reach their retirement goals. Eligible participants can even get the chance to earn 3% cash back (up to $250) on contributions made to their Human Interest 401(k).²

5. Credibility 

A provider's reputation is a key indicator of their quality. Industry awards, positive customer reviews, and a strong standing among competitors offer valuable insight into the kind of experience you can expect as a client.

For example, Human Interest was awarded the “Gold Stevie Award" medal in the 2025 Stevie Awards for Sales & Customer Service in “Customer Experience, which we believe shows a deep understanding of customer needs, exceptional support, and user-friendly technology.³

Consider a 401(k) with Human Interest

Choosing a 401(k) plan provider requires you to consider the plan features that they can offer their employees, as well as their pricing, customer support, and overall experience with their platform. At Human Interest, we take pride in ensuring our customers are satisfied with all aspects of our services. Contact us today to learn how you can start a plan with us.

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Human Interest Inc. is an affordable, full-service 401(k) and 403(b) provider that seeks to make it easy for small and medium-sized businesses to assist their employees with investing for retirement. For more information, please visit humaninterest.com. Investment Advisory services are provided through Human Interest Advisors LLC (HIA) to plans that select HIA as the investment adviser. HIA is a Registered Investment Adviser and subsidiary of Human Interest Inc. For more information on our investment advisory services, please visit https://humaninterest.com/hia/.

This content has been prepared for informational purposes only, and should not be construed as tax, legal, or individualized investment advice. Neither Human Interest Inc. nor Human Interest Advisors LLC provides tax or legal advice. Consult an appropriate professional regarding your situation. The views expressed are subject to change. In the event third-party data and/or statistics are used, they have been obtained from sources believed to be reliable; however, we cannot guarantee their accuracy or completeness. Investing involves risk, including risk of loss. Past performance does not guarantee future results.