Fidelity is entering the pooled employer plan arena with the rollout of a new plan built from its own mutual funds, according to news reports.
The Fidelity Advantage 401(k) will be available to employers for a one-time $500 start-up fee and $1,200 annually, FA-IQ sister publication Ignites writes, citing a Department of Labor registration filed last week. Employees, meanwhile, will have to pay $100 annually for the plan, on top of a 0.5% investment service fee, according to Ignites.
The new plan’s investment menu is made up exclusively from no-fee Fidelity Flex funds, with Fidelity also operating as the fiduciary as well as administrator on the plan, the publication writes.
Around 40 firms have registered with the DOL to offer pooled employer plans, created by the Setting Every Community Up for Retirement Enhancement, or Secure, Act, signed into law in December 2019, according to Ignites. They include Aon, Mercer, Paychex, Principal Financial and Vestwell, while Empower and Schwab are also finalists to serve as the recordkeeper for The 401(k) Plan Co., the publication writes.
In November, the DOL finalized a rule aimed at easing the registration process for pooled plan providers, as reported.
Do you have a news tip you’d like to share with FA-IQ? Email us at firstname.lastname@example.org.