How to Switch Your 401(k) Provider

Ubiquity Retirement + Savings has been an affordable provider of retirement solutions, designed for small businesses, start-ups, and solopreneurs since 1999.

  • Streamlined, flat-fee plans starting at $97/month
  • Easy online setup and management
  • Flexible investment options
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Is your current 401(k) provider charging hidden AUM fees and excessive per-participant charges?

Are they working exclusively with brokers who limit investment options in favor of those with high commission loads? Small business owners who are dissatisfied with their current record keeper’s services or fees or are disappointed in the performance of their investments now have options for a quick and seamless transition to a new 401(k) provider. You do not need to terminate your current plan to do so; instead, your new provider will simply take over the administration of your current plan while implementing any amendments you choose to make.

The truth is, switching 401(k) providers is commonplace and routine. All it takes is a few hours of your time to start offering the competitive, high-performing 401(k) plan you and your employees deserve.

Questions to Ask Prospective 401(k) Providers

You’ll enjoy greater confidence about a 401(k) provider switch with the answers to these questions:

Is your new provider located online or within the same community?

It’s easier to initiate a local or digital transfer than to transfer records and documents over state lines.

How is customer service handled by the new provider?

Some providers offer email or online chat support only, while others have a call center hotline available.

Does the new provider’s website measure up with the old one?

You should have access to a user-friendly platform packed with features and information.

Are participant statements and management reports easy to read?

Before signing over, ask to see sample statements and reports to ensure you’re getting what you need.

Does the 401(k) provider operate in a timely manner?

Find out when loans and distributions are issued and how quickly contributions or transfers update.

How many companies like yours does the 401(k) provider work with?

References and testimonials should come from businesses of similar size to yours.

What fees are assessed for the plan’s administration?

An onboarding fee combined with a monthly flat fee can cover the expense of routine maintenance.

Are fiduciary duties and compliance built into the plan?

Find out if filing Form 5500 and ensuring IRS compliance are included with your plan or if you need your accountant or legal counsel to handle it.

Considerations Before Switching 401(k) Plan Providers

Pitfalls can arise when making a 401(k) switch if you’re not sure what to avoid.

  • Continue making contributions

    Don’t stop sending plan contributions to your old provider until you are explicitly instructed to do so. Employee salary deferrals and loan repayments are subject to deadlines. If these deadlines are missed, the contributions must be refunded to participant accounts, and you must note the error on Form 5500.

  • Confirm ERISA compliance

    Make sure ERISA compliance is covered for both the prior and the current plan year. If you have not completed nondiscrimination testing or Form 5500 filing for the prior year, doublecheck that your new provider has all the information they need to handle it.

  • Consider fees

    Some 401(k) providers (especially insurance companies) charge punitive service termination fees. The new 401(k) provider may also charge a fee for onboarding. You’ll want to keep these fees to a minimum and avoid changing providers constantly to protect the interests of plan participants.

Ultimately, the process of switching is facilitated by your old and new providers without much hassle for you.

Why Switch to A New 401(k) Provider?

One of the main reasons employers switch to Ubiquity is that they prefer our transparent pricing that doesn’t come with hidden costs. Paying one flat rate for administrative service ensures that fees aren’t cutting into your plan’s profitability. We can refer you to an honest broker if you need one or you can use the financial advisor of your choice.

We encourage participant engagement through educational materials, web portals, and top-notch employee service. Contact Ubiquity to learn how easy it is to switch 401(k) providers.

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© 2024 Ubiquity Retirement + Savings
44 Montgomery Street, Suite 300
San Francisco, CA 94104

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Talk to Sales
Schedule a Free Consultation

Contact Support
Visit our Help Center
6am–5pm PT / 9am–8pm ET

© 2024 Ubiquity Retirement + Savings
44 Montgomery Street, Suite 300
San Francisco, CA 94104