American 401k Review
- American 401k is a small employee retirement benefits provider that offers services through a subsidiary of MassMutual.
- The company is very small, with just one registered rep listed.
- Companies that work with American 401k get personalized service.
- This review is for small business owners and HR professionals who are considering American 401k as their employee retirement plan provider.
Small businesses that want to offer employee retirement benefits don't necessarily need to go to a large company; sometimes, smaller organizations offer more personalized service. However, it is equally important for an insurance provider to be plugged into a broader network to ensure a sufficient variety of plans. American 401k is a small retirement benefit services provider based outside Philadelphia. American 401k is a good potential option for businesses that want personalized service from an individual rep, combined with the backing of a large national insurance company.
American 401k
The Verdict
American 401k is upfront about all costs to employers and employees, offers access to over 15,000 funds and ETFs, and provides concierge-level customer support, making it our best pick for transparency.
American 401k Editor's Score: 91/100
| Transparent pricing | 100/100 |
| Low employee investment fees | 87/100 |
| Mobile and online access | 100/100 |
| No fees for sign-up or administration | 80/100 |
| Variety of plans | 90/100 |
Why American 401k Is Best for Transparency
Unlike some of the best employee retirement providers, American 401k offers transparent pricing. The provider's administration fees and per-employee fees are indicated for each of the two plan offerings, and custom quotes can be obtained via phone, email or an online contact form. What's more, the company does not charge 12b-1 fees, exchange fees or minimum-balance fees, and there are no commissions on the buying or selling of mutual funds.
Pros
- The company's website is transparent about pricing and fees.
- American 401k offers investors more than 15,000 funds and 1,000 ETFs, including Vanguard.
- It is appropriate for businesses with one to 500 employees.
Cons
- Some plans limit access to certain investments, which can hurt adoption rates.
- There is limited information about the platform's administrative dashboard.
American 401k Plan Features
| Feature | Premier | Elite |
| Number of employees | 0 to 100 | 101+ |
| Employee self-enrollment | Yes | Yes |
| In-person and online group enrollment sessions | Yes | Yes |
| Passive and active funds | Yes | Yes |
| ETFs | Yes | Yes |
| Individual securities | No | Yes |
Premier
Designed for businesses with up to 100 employees, American 401k's Premier plan is for businesses that are starting a new 401(k). This plan offers full service and recordkeeping; the biggest difference is in the types of investments available. Premier only offers mutual and exchange-traded funds (ETFs), making it ideal for businesses that want to limit employees to diversified investment options.
Elite
American 401k's Elite plan is meant for businesses with 101 or more employees and those with an existing 401(k). The option is also best for businesses that want access to funds, ETFs and individual securities.
Additional Features
- Setup and onboarding: Clients get concierge-level guidance throughout the implementation process and ongoing administration. American 401k helps business owners and HR professionals design retirement plans tailored to their unique needs. If your company has an existing 401(k), American 401k can help you review your current plan and conduct a Fiduciary Investment Review.
- Administration, compliance and recordkeeping: American 401k customers can take advantage of payroll software integration, as well as get assistance with Department of Labor and IRS compliance and compensation reporting. PB&H Benefits provides administration and recordkeeping services to American 401k customers.
- Mobile enrollment: Like many retirement providers, American 401k offers employees mobile enrollment.
- Employee education and resources: Employees also get access to one-on-one investment guidance, in-person group enrollment, webinars, retirement income calculators, and economic and market updates.
Account Types
- Safe harbor 401(k): Safe harbor plans have certain matching requirements outlined by the IRS, but they also allow business owners to maximize their own contributions to the plan.
- Traditional 401(k): Traditional 401(k) plans offer the greatest flexibility for companies with employees.
- Solo 401(k): Businesses that don't have any employees can set up a self-employed 401(k), which allows larger contributions than other individual retirement plans.
Investment Options
American 401k employers can choose from more than 15,000 mutual funds and over 1,000 ETFs. Plan administrators can also select from both active and passive (or index) funds. What's more, American 401k does not limit the number of investment slots that employers can offer their employees, and employers can include the option of a self-directed brokerage account.
Beyond its range of investment options, American 401k does not collect commissions when buying or selling mutual fund shares, and there are no 12b-1 fees, exchange fees or minimum-balance fees.
Pricing
American 401k's main retirement plans have similar administrative costs, with discounts available based on the plan size. American 401k does not charge commissions when buying or selling mutual fund shares, and there are no 12b-1 fees, exchange fees or minimum-balance fees.
- Premier: This plan has a one-time install fee of $250 and an annual fee of $500, plus $20 per participant per month. Employees are charged an annualized program fee of 0.65%. Profit sharing is included.
- Elite: This plan has a one-time install fee of $250 and an annual fee of $500, plus $20 per participant per month, with a discount based on the plan size. Employees are charged a custom annualized program fee based on their employer's plan. As with the Premier plan, profit sharing is included.
Ease of Use
American 401k's plans are offered through a subsidiary of MassMutual. But there is not an avenue for setting up a plan online; you'll have to work with a rep, which requires coordinating schedules and may involve face-to-face meetings. However, once your plan is set up, the plan maintenance can be handled online.
American 401k also supports employee participation rates by offering both online and mail-in enrollment. The provider offers group enrollment meetings in person or via webinar, as well as educational resources to help employees make investment decisions.
Customer Service
Information regarding American 401k's customer service is limited. Prospective customers who want a quote can contact the financial professional via phone, email or a contact form. American 401k's website indicates that clients get access to account manager concierge service and that advisory services are offered through qualified registered representatives of MML Investors Services LLC, a subsidiary of MassMutual. Likewise, customer service pertaining to recordkeeping may go through a third-party provider, PB&H Benefits.
Drawbacks
American 401k charges an annual fee. If you’re looking for an employee retirement benefits service provider that doesn’t charge an annual fee, consider our review of Human Interest.
What Is an Employee Retirement Benefits Provider?
An employee retirement benefits provider is a company that helps small business owners provide sponsored retirement plans for their employees to save and invest. Retirement benefits providers offer various services, including plan administration, investment selection and recordkeeping. Providers usually offer different types of retirement plans, investment options, pricing structures, features and services.
Methodology
To determine our best pick for transparency in employee retirement plans, we researched plan providers that provided all the critical information up front. Entrepreneurs are busy running their businesses and don’t have time to call every vendor to find out the cost of each plan. That’s why transparency in pricing and services is so important.
We chose the companies that offered the most specific details rather than ranges of pricing. We also looked for the plan sponsors that go into detail about their fees and costs stood out to us. To land our pick for transparency, the vendor also had to be clear about the plan types and investment choices it offers and provide top-notch customer service. American 401k checked off all these boxes for transparency.
FAQs
Does American 401k offer “concierge” support?
Yes. With concierge-level support, your business receives a dedicated team of retirement specialists who create and implement your plans, help employees sign up, and offer training and support to help educate employees about their options.
What are some of the investment fees American 401k doesn't charge?
American 401k doesn't charge sales loads, 12b-1 fees, exchange fees, or minimum balance fees. Employees participating in American 401k plans pay investment fees of 0.65%. Investment fees can add up quickly and reduce the overall lifetime ROI of your investment portfolio.
Bottom Line
We recommend American 401k for ...
- Business owners who want face-to-face meetings with a representative.
- Companies that want to offer personalized service to their employees.
- Businesses based in the Philadelphia area.
We don't recommend American 401k for ...
- Business owners who want a streamlined online setup.
- Startups that want to reward employees with equity in the company.
American 401k
The Verdict
American 401k is upfront about all costs to employers and employees, offers access to over 15,000 funds and ETFs, and provides concierge-level customer support, making it our best pick for transparency.