ADP, a human resources and payroll software provider, works with a range of financial institutions to offer 401(k) plans to its clients. These institutions include major banks, investment companies, and retirement plan providers, each with their unique investment offerings, fees, and customer service capabilities. ADP does not solely rely on a single provider for its 401(k) offerings, allowing clients to choose the provider that best meets their specific needs and preferences. Through this approach, ADP provides flexibility and choice to its clients, enabling them to select the most suitable 401(k) plan for their employees’ retirement savings.
ADP Retirement Options
ADP, a leading provider of human capital management solutions, offers a range of retirement options to help individuals save for the future.
401(k) Plan
- Traditional 401(k): Contributions are made on a pre-tax basis, reducing current taxable income. Withdrawals during retirement are taxed.
- Roth 401(k): Contributions are made on an after-tax basis, providing tax-free growth and withdrawals in retirement.
403(b) Plan
Available to employees of public schools and certain tax-exempt organizations. Contributions are made on a pre-tax basis, reducing current taxable income, and withdrawals during retirement are taxed.
457 Plan
Designed for employees of state and local government agencies and certain tax-exempt organizations. Contributions are made on a pre-tax basis, reducing current taxable income, and withdrawals during retirement are taxed.
Savings Plan
A non-qualified retirement plan that allows employees to save for retirement on a tax-deferred basis. Contributions are made on an after-tax basis, but earnings grow tax-deferred and withdrawals are taxed.
Investment Options
ADP offers a wide range of investment options to meet individual risk tolerance and financial goals, including:
- Mutual funds
- Exchange-traded funds (ETFs)
- Company stock
- Target-date funds
Retirement Planning Tools
ADP provides a range of retirement planning tools to help individuals make informed decisions, including:
- Online retirement calculators
- Personalized retirement projections
- Access to financial advisors
Fees
ADP charges fees for managing retirement plans, including:
| Fee | Description |
|---|---|
| Administration fee | Fee for administering the plan, including recordkeeping and customer service. |
| Investment management fee | Fee for managing the investment options within the plan. |
Fidelity Retirement Services
ADP, a leading provider of human capital management solutions, partners with Fidelity Investments, a respected investment management firm, to offer 401(k) plans to its clients. Here’s an overview of Fidelity’s services for ADP’s 401(k) plans:
- Investment Management: Fidelity provides a wide range of investment options, including mutual funds, exchange-traded funds (ETFs), and target-date funds, to meet the investment goals of plan participants.
- Account Administration: Fidelity handles the day-to-day administration of the plans, including enrolling participants, processing contributions, and providing account statements.
- Customer Service: Fidelity offers a dedicated support team to assist plan participants with account-related questions and provide financial guidance.
- Education and Financial Planning: Fidelity provides educational resources and financial planning tools to help participants make informed investment decisions and prepare for their retirement.
Here’s a table summarizing the key features of Fidelity’s services for ADP’s 401(k) plans:
| Service | Description |
|---|---|
| Investment Management | Wide range of investment options including mutual funds, ETFs, and target-date funds |
| Account Administration | Enrolling participants, processing contributions, providing account statements |
| Customer Service | Dedicated support team for plan participants |
| Education and Financial Planning | Educational resources and financial planning tools |
Vanguard Retirement Plan Services
ADP, a leading provider of human capital management solutions, partners with Vanguard Retirement Plan Services to offer comprehensive 401(k) plans to businesses of all sizes.
- Vanguard’s Expertise: Vanguard is a renowned financial services provider with decades of experience in managing retirement plans, offering a wide range of investment options and expert guidance.
- Plan Design Flexibility: Employers can customize their 401(k) plans to meet the specific needs of their workforce, including Safe Harbor and SIMPLE IRA options.
- Investment Options: Participants have access to a diverse selection of investment funds, including target-date funds, index funds, and actively managed funds.
| Feature | Description |
|---|---|
| Contribution Limits | ADP and Vanguard adhere to IRS regulations for 401(k) contribution limits, including employer match and catch-up contributions. |
| Participant Education | Vanguard provides comprehensive educational materials and resources to help participants make informed investment decisions. |
| Compliance Support | ADP and Vanguard work closely to ensure that 401(k) plans are compliant with federal and state regulations. |
Empower Retirement
ADP partners with Empower Retirement to provide 401(k) retirement plans and services to employers and their employees. Empower Retirement, formerly known as Great-West Retirement Services, is a leading provider of retirement plans and services in the United States.
Empower Retirement offers a wide range of 401(k) plan options, including traditional 401(k) plans, Roth 401(k) plans, and safe harbor 401(k) plans. Empower Retirement also offers a variety of investment options, including mutual funds, ETFs, and target-date funds.
ADP and Empower Retirement work together to provide employers with a comprehensive 401(k) plan solution that is designed to help employers meet their retirement plan objectives and help employees save for their future.
Thank you for taking the time to read our article about who ADP uses for 401(k) plans. We hope you found the information helpful. If you have any further questions, please feel free to contact us. We’d be happy to help. And don’t forget to visit us again soon for more great articles on everything from personal finance to investing.