PLANADVISER - July/August 2019 - 32

2019 PLANADVISER Recordkeeper Services Survey: 401(k) Plans
T
he 401(k) plan is the largest workplace savings vehicle and now accounts for
more than, on average, 65% of all defined contribution (DC) plans, participants
and assets, but the market is far from uniform. Almost 90% of 401(k)s
each have less than $5 million in assets, but these plans account for less than
20% of 401(k) participants and less than 10% of 401(k) assets. Stated differently,
the 647 largest 401(k)s-i.e., those that have over $1 billion in assets-control
49% of 401(k) assets and nearly 33% of all participants.
Not surprisingly, the industry has evolved to cater to the needs of plans
both large and small, with larger plans more likely to be sold direct and smaller
plans typically sold and serviced through retirement plan advisers, who offer
added value to sponsors lacking the knowledge or time to maintain their plan.
Overall, fiduciary concerns are driving a more expansive review of 401(k)
provider capabilities. Sponsors have always taken an interest in service offerings
related to potential administrative headaches such as compliance testing and
Form 5500 preparation and filing. But many requests for proposals (RFPs) now
explore other areas of fiduciary importance, including fiduciary outsourcing
options, cybersecurity protocols and disclosure of ancillary business revenue
that might be connected to plan administration. -BOK
Growth in Total 401(k) Plan Assets ($mm)
4 The Vanguard Group, Inc.
5 Voya Financial
6 Wells Fargo
7 T. Rowe Price
8 Prudential Retirement
9 Bank of America
10 Principal Financial Group
Top 10, by Total 401(k) Assets ($mm)
1 Fidelity Investments
2 Empower Retirement
3 Alight Solutions
$1,636,484
$400,486
$375,562
$374,559
$196,284
$190,985
$158,756
$147,497
$147,055
$143,359
Top 10, by 401(k)s With <$10mm in Assets
1 Paychex, Inc.
2 American Funds
3 ADP Retirement Services
4 John Hancock
5 Ascensus
2010
2011
2012
2013
2014
2015
2016
Total 401(k) Assets, Plans and Participants

Total 401(k) plan assets
$4,930,732
Plan Size
<$5mm
$5mm - $25mm
>$25mm - $100mm
>$100mm - $500mm
>$500mm

Total 401(k) plans
550,871
Assets ($mm)†
$436,978
$492,609
$453,350
$727,702
$2,819,454

Total 401(k)
plan participants
70,211,519
Plans†
480,315
52,501
13,300
3,524
1,235
Participants†
12,127,573
9,680,724
8,399,274
11,422,567
28,716,618
2017
2018
2019
6 Principal Financial Group
7 Empower Retirement
8 Transamerica
9 Voya Financial
10 MassMutual
84,309
55,354
47,686
45,245
40,276
30,672
27,631
23,743
21,830
20,716
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
5 T. Rowe Price
7 Prudential Retirement
8 Ameritas
9 Alight Solutions
10 Voya Financial
†Not all providers report complete data; therefore, data segmented by plan size will not equal the corresponding overall total.
32 | planadviser.com July-August 2019
985
312
179
161
156
156
118
116
98
92
$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
$4,930,732
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PLANADVISER - July/August 2019

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