PLANADVISER - July/August 2018 - 34

2018 Recordkeeper Services Guide: 401(k) Plans
T
he 401(k) plan is the most common institutional retirement savings vehicle
and now accounts for more than 60% of all defined contribution (DC) plans,
participants and assets. But the market is far from uniform. Over 90% of the
plans have less than $10 million in total plan assets, yet these plans account for
only 20% of total 401(k) participants and less than 15% of the total assets. Stated
differently, the 700 largest plans-accounting for 0.1% of all plans-control 50%
of all assets and over one-third (36%) of all participants.
Not surprisingly, the industry has evolved to cater to the unique needs of
these two distinct markets, with smaller plans commonly sold or serviced
through intermediaries and larger plans more apt to be sold directly. Recordkeepers
have somewhat mirrored this trend, resulting in two somewhat separate
and distinct competitive landscapes: Smaller plans tend to align with advisercentric
businesses or those supplying core business services-e.g., payroll-
while larger plans migrate toward providers offering proprietary, and customizable,
platforms.
Beyond these differences, even the smallest plans can offer competitively
priced investments, managed accounts and comprehensive financial wellness
education if plan sponsors can find the right partner. -Brian O'Keefe
Total 401(k) Plan Assets ($mm)
Top 10, by Total Assets ($mm)
1 Fidelity Investments
2 The Vanguard Group, Inc.
3 Empower Retirement
4 Alight Solutions
5 Voya Financial
6 Wells Fargo
$1,680,269
$425,513
$370,000
$348,582
$264,484
$190,795
7 Bank of America Merrill Lynch $164,336
8 T. Rowe Price
9 Prudential Retirement
10 Principal Financial Group
$162,219
$152,896
$147,736
Top 10, by 401(k)s With <$10mm in Assets
1 Paychex, Inc.
2 American Funds
3 John Hancock Ret. Plan Svcs
4 ADP Retirement Services
5 Ascensus
2009
2010
2011
2012
2013
2014
2015
2016
2017
Total 401(k) Assets, Plans and Participants, by Plan Size

Total 401(k) plan assets
$5,143,667
Plan Size
<$10mm
$10mm - $50mm
>$50mm - $200mm
>$200mm - $1b
>$1b

Total 401(k) plans
545,313
Assets ($mm)*
$679,919
$522,445
$517,664
$896,843
$2,540,021

Total 401(k)
plan participants
65,579,823
Plans*
502,959
32,317
6,484
2,101
682
Participants*
14,215,046
9,210,691
8,280,743
11,017,101
23,001,630
2018
6 Principal Financial Group
7 Empower Retirement
8 Transamerica
9 MassMutual
10 Voya Financial
79,290
53,817
44,064
42,449
39,554
29,152
26,440
23,634
22,438
20,709
Top 10, by 401(k)s With >$200mm in Assets
1 Fidelity Investments
2 The Vanguard Group, Inc.
3 Empower Retirement
4 Wells Fargo
5 Charles Schwab
6 T. Rowe Price
7 Prudential Retirement
8 Voya Financial
9 Alight Solutions
10 Bank of America Merrill Lynch
*Not all providers report complete data, therefore data segmented by plan size will not equal the corresponding overall total.
34 | planadviser.com july-august 2018
1,038
336
170
161
158
155
119
99
97
84
$2,127,499
$2,597,292
$2,878,493
$2,910,393
$3,088,538
$3,946,545
$4,289,045
$4,231,432
$4,586,095
$5,143,667
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