Vanguard to Provide 401(k) Plans to Small Companies

The service is designed for 401(k) and profit-sharing plans with assets below $20 million. The new comprehensive, turnkey service will include funds, recordkeeping, call center services, compliance testing, participant education, and optional services such as participant advice, self-directed brokerage, and trustee services. The service is expected to launch in the fourth quarter with “all-in” plan costs—total investment and recordkeeping costs—anticipated to be among the lowest in the industry.

“Vanguard believes that small businesses should be able to offer high-quality, cost-effective retirement plans to help their employees save efficiently for their futures,” said Kathy Fuertes, head of Vanguard’s Retirement Plan Services for small business. “By working with Ascensus, we have developed a streamlined way for these companies and their plan participants to easily access Vanguard’s low-cost funds and a range of investment and retirement plan services.” 


The service will be offered directly to plan sponsors as well as to fee-only advisers who serve sponsors and may be interested in a bundled approach from two of the most trusted providers in the industry.

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