According to a Cogent study, top 401k providers include Great-West Retirement Services, Milliman, Ascensus, Affiliated Computer Services, Hewitt, Mercer, the Standard, ADP Retirement Services and Paychex. Schwab, Fidelity, TD Ameritrade and Vanguard are top solo 401k providers that feature equities and mutual funds, whereas Pacific Life, Hartford Life and Nationwide offer solo 401ks that feature annuities for those who are self-employed.
A 401k is an employer-sponsored savings plan that is used for retirement, and the plan allows workers to invest a pre-tax portion of their paycheck toward retirement. Therefore, taxes are not paid until the funds are withdrawn. These plans were developed in the 1980s to supplement pension plans. Before that time, employers offered pension funds. However, 401ks supplanted pensions when pensions became too expensive to run and manage.
A 401k plan allows each worker to control how much of an investment he wants to make towards his retirement. Most of the plans highlight stocks, bonds, mutual funds and money market investments in their portfolios. Target-date funds are popular choices, as these funds feature a mix of bonds and stocks that become more conservative over time. These retirement accounts are typically managed by a fund administrator from the selected 401k company.