Bundled vs. Unbundled 401(k) Service Providers: Which is Right for you?

401(k) services are necessary for almost every single business in any sector. However, choosing a 401(k) provider is not always a simple process. A number of moving parts must be coordinated, and many different facets that you need to understand – Plan Documents, Investments, Recordkeeping, Third-Party Administration. Managing your own business while attempting to coordinate these services is not only cumbersome, but also counter-productive for you and your employees. To make sure that people do not have to go through all that, bundled 401(k) services simplify the flow of services for you and everyone in your company. However, many people still go for unbundled 401(k) services because they have been sold on Unbundled being a lower cost, higher service option. As a low-cost, high service, Bundled 401(k) service provider, allow Wellington Retirement Solutions, Inc. help to dispel that myth.

Why People Prefer Unbundled 401(k) Services

As mentioned, a 401(k) program is not just dependent on a single factor. Instead, it involves a recordkeeper, third-party administrator (TPA), custodian, investment adviser, document preparer, etc. Each component can take considerable time to research and find the right provider – and if someone says they will find the provider(s) for you then you have to consider, “What’s in it for them?” More than likely, these “service finders” are taking a hefty commission. Regardless, working with several providers for one benefit plan takes up a lot of time and effort, requiring you to take significant time away from other matters. Taking care of every matter independently is referred to as an unbundled 401(k).

It might sound like a drag to take care of every single aspect on your own, but people still go about it instead of opting for a bundled 401(k) service. Some companies who offer bundled 401(k) plan services typically charge a lot with the value proposition of making the 401(k) less of a burden on the employer.

What Wellington Retirement Solutions Offers

Fortunately, Wellington Retirement Solutions, Inc. provides employers with Bundled 401(k) Plan services and a turnkey solution including:

  • Low costs - As low as $100/month
  • A wide array of investments - Including stocks, bonds, CDs, ETFs
  • Managed Lifestyle Portfolios – With low-cost index funds
  • Expert Plan Document design - Which can help save you money
  • Individual account trust reporting – Verifying payroll data
  • Third-Party Administration - Including Form 5500 preparation and non-discrimination testing
  • Cross-Testing - For Profit Sharing contributions targeted to business owners and officers
  • Safe Harbor 401(k) – To allow owners and highly-compensated employees to maximize their tax deductions
  • Point-of-Contact Service Rep – Unlike an unbundled 401(k) Plan where most of your time is spent determining who to call, Wellington assigns your company with a representative who will work with you from day one until you retire (and longer!

Wellington Retirement Solutions, Inc. offers businesses a low cost 401(k) service that is better than bundled! Wellington makes it easy for you to offer a 401(k), ensuring that you do not have to run around simply finding out whom to call with a set of questions. At the same time, offers you a service that is not too hard on your wallet.

Wellington Retirement Solutions, Inc. brings you investment flexibility, document design flexibility, expert plan administration, low costs, and investment advice with its bundled 401(k) service. Moreover, the plan custodian in the bundled 401(k) service by Wellington Retirement Solutions, Inc. is Charles Schwab & Co., Inc. – one of the largest brokerage firms in the world. Through Schwab, Wellington offers clients a wide array of investment options ranging from low-cost index funds, to stocks, ETFs, bonds and CDs.

Hence, if you want a high service 401(k), make sure to check out Wellington Retirement Solutions’ bundled service. It will cover everything you need on your terms while also being the low cost 401(k) option for you.

 

- Robert J. Alexander

Mr. Alexander is a Pension Consultant for Wellington Retirement Solutions, Inc. with over 10 years of experience in the retirement plan industry. Wellington Retirement Solutions, Inc. can help you determine what type of 401(k) Plan is ideal for your business. Even if you already have a 401(k) Plan, allow us to review your Plan provisions for peace of mind to know that the design of your 401(k) Plan meets your goals & objectives. We are committed to providing personal service excellence. If you have any questions regarding the information in this article then please reach out to one of our specialists at (888) 934-4015.

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