Vanguard to Offer Bundled 401(k) Plans to Small Businesses

Ascensus recordkeeping adds to Vanguard’s investment and indexing services

Vanguard announced Wednesday that it would offer a bundled 401(k) plan service for small companies, combining its investment and indexing services with the small-plans recordkeeping of retirement plan administrator Ascensus.

The service is designed for 401(k) and profit-sharing plans with assets below $20 million, the Valley Forge, Pa.-based investment manager said in a news release. 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 said.

The service will be offered directly to plan sponsors as well as to fee-only advisors who serve sponsors and may be interested in a bundled approach.

“Vanguard believes that small businesses should be able to offer high-quality, cost-effective retirement plans to help their employees save efficiently,” said Kathy Fuertes, head of Vanguard’s Retirement Plan Services for small business, in a statement. “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.”

The 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.

Vanguard manages more than $1.6 trillion in U.S. mutual fund assets, including over $160 billion in exchange traded fund assets. Vanguard offers more than 170 index and actively managed funds to U.S. investors and over 60 additional funds in non-U.S. markets.

Read more about Vanguard at

Reprints Discuss this story
We welcome your thoughts. Please allow time for your contribution to be approved and posted. Thank you.

Most Recent Videos

Video Library ››