Fidelity Workplace Investing Review
by FMR LLC
Fidelity Workplace Investing offers Fidelity Advantage 401(k), a Safe Harbor 401(k) for small businesses starting their first plan, with Fidelity as plan sponsor and fiduciary. The employer pays $100 a month plus a $500 setup fee.
- Company size
- Small businesses, mid-market companies
- Pricing model
- Base fee + per employee
Best for
- Small businesses starting a 401(k) for the first time
- Employers that want the provider to act as plan sponsor and fiduciary
- Teams on Gusto or Paylocity payroll
Not ideal for
- Employers that want a custom plan design (Advantage is a pre-set Safe Harbor plan)
- Employers moving an existing 401(k) (Advantage is for first-time plans)
How we evaluated Fidelity Workplace Investing
This review rests on 16 facts checked against Fidelity Workplace Investing’s official pricing pages and documentation, most recently on . We did not test the product hands-on: the score and the pros and cons use only those verified facts, as our methodology explains, and third-party ratings are quoted, never scored.
Our verdict
Fidelity Workplace Investing sells Fidelity Advantage 401(k), a Safe Harbor plan for businesses with 2 to 1,000 employees starting their first 401(k), from privately held Fidelity, founded in 1946 in Boston. The employer pays $100 a month plus a $500 setup fee; Fidelity acts as plan sponsor and 3(16) and 3(38) fiduciary and files Form 5500.
Strengths
Published pricing
$100 a month for the employer plus a $500 setup fee; participants pay under $10 a month and 0.125%.
Evidence: Implementation fee: $500
Fiduciary relief
Fidelity acts as plan sponsor and 3(16) and 3(38) fiduciary for Fidelity Advantage 401(k).
Evidence: Fiduciary services: Yes
Filings handled
Fidelity prepares Form 5500 and manages compliance testing.
Evidence: Form 5500 support: Yes
Employee app
Employees use NetBenefits on web and mobile to enroll and manage accounts.
Evidence: Mobile apps: NetBenefits (web and mobile app)
Weaknesses
First-time plans only
Fidelity Advantage 401(k) is for businesses starting a 401(k) for the first time; existing plans move to the traditional 401(k).
Evidence: Best for: Small businesses, mid-market companies
Safe Harbor match required
The plan requires a standard Safe Harbor employer match.
Evidence: Key features: Safe Harbor plan design with a standard match, Fidelity as plan sponsor and 3(16)/3(38) fiduciary, Express Entry contribution submission for any payroll, Plan Sponsor Webstation employer platform, NetBenefits employee web and mobile app
Two named payroll partners
Gusto and Paylocity are integrated; other payrolls submit contributions through Express Entry.
Evidence: Notable integrations: Gusto, Paylocity
Price at a glance
Starting base fee
$100/mo
Pricing model
Base fee + per employee
Price transparency
Published
Minimum employees
2
Quick answers
- How much does Fidelity Advantage 401(k) cost?
- The employer pays $100 a month and a $500 one-time implementation fee; participants pay a recordkeeping fee under $10 a month and a 0.125% advisory fee.Based on Extra costs: Participant recordkeeping fee under $10 a month ($25 a quarter), 0.125% investment advisory fee on participant balances
- Who can use Fidelity Advantage 401(k)?
- Businesses with 2 to 1,000 employees starting a 401(k) for the first time.Based on Best for: Small businesses, mid-market companies
- Does Fidelity act as a fiduciary?
- Yes. Fidelity performs most administrative duties as plan sponsor and 3(16) and 3(38) fiduciary.Based on Fiduciary services: Yes
- Which payroll providers integrate with Fidelity Advantage 401(k)?
- Gusto and Paylocity; any other payroll can submit contributions through Fidelity Express Entry.Based on Notable integrations: Gusto, Paylocity
Coverage of core 401(k) providers capabilities
Each core capability we evaluate in 401(k) Providers, checked against Fidelity Workplace Investing’s own documentation. “Not verified yet” means we have not confirmed it either way, not that it is missing.
8 verified of 10 core capabilities
401(k) Providers
- Plan design and document
- Participant recordkeeping
- Payroll integration
- Investment menu and default investment
- Fiduciary services
- Compliance testing
- Form 5500 support
- Automatic enrollment · not verified yet
- Participant notices and education · not verified yet
- Fee disclosure
Specifications
Product
- Modules
- Fidelity Advantage 401(k), Traditional 401(k) for existing plans, Self-Employed 401(k), SIMPLE IRA
- Mobile apps
- NetBenefits (web and mobile app)
Integrations
- Open API
- Yes
Fidelity Workplace Investing integrations
Fidelity Workplace Investing integration coverage
The 4 apps that 401(k) providers products document most often, and whether Fidelity Workplace Investing documents each.
2 of the 4 most-connected apps documented by Fidelity Workplace Investing; median of the 5 products compared: 2
- Gusto · documented by 3 of 5
- Paylocity · documented by 3 of 5
- Paychex · documented by 2 of 5
- QuickBooks · documented by 2 of 5
Integrations each vendor documents (native, marketplace, Zapier or API), 5 live 401(k) providers products. Not documented does not mean not possible.
Where it ranks
- #3 of 3 scored401(k) Providers
- #2 of 3 scored401(k) Providers for Mid-Sized Companies
- #2 of 3 scored401(k) Providers for Small Business
Fidelity Workplace Investing alternatives
- Vanguard Workplace Solutions100% similar
- Principal Financial Group90% similar
- Empower70% similar
Implementation and support
- Implementation fee
- $500
- Support channels
- Phone, Chat
About FMR LLC
- Founded
- 1946
- Headquarters
- Boston, Massachusetts, USA
- Ownership
- Private
Official profiles
Fidelity Workplace Investing: frequently asked questions
Where is Fidelity based?
Fidelity is headquartered in Boston, Massachusetts and has been privately held since its founding in 1946.
What is Fidelity Workplace Investing used for?
Fidelity Workplace Investing is a 401(k) providers product built for small businesses and mid-market companies. Its modules include Fidelity Advantage 401, Traditional 401 for existing plans, Self-Employed 401, and SIMPLE IRA.
Is Fidelity Workplace Investing legit?
Fidelity Workplace Investing is sold by FMR LLC, which was founded in 1946, is headquartered in Boston, Massachusetts, USA, and is privately held.
What are the best alternatives to Fidelity Workplace Investing?
In our 401(k) providers ranking, the highest-scored products other than Fidelity Workplace Investing are Human Interest and Betterment at Work. Compared side by side, by reason to switch: Fidelity Workplace Investing alternatives.
What are the pros and cons of Fidelity Workplace Investing?
Strengths documented on the vendor’s own pages: published pricing, fiduciary relief, and filings handled. It is less suited to employers that want a custom plan design (Advantage is a pre-set Safe Harbor plan) and employers moving an existing 401(k) (Advantage is for first-time plans).
Does Fidelity Workplace Investing have an API?
Yes. Fidelity Workplace Investing offers an open API to customers.
Does Fidelity Workplace Investing have a mobile app?
Yes. Fidelity Workplace Investing lists mobile apps: NetBenefits (web and mobile app).
Is Fidelity Workplace Investing good for small businesses?
Fidelity Workplace Investing lists small businesses among the company sizes it is built for (small businesses and mid-market companies), with a minimum of 2 employees; for 10 employees its lowest published plan comes to $100 a month. It ranks #2 of 3 in our 401(k) providers for small businesses.
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