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MassMutual 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.
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. These smaller providers should be plugged into a broader network to offer plans as robust as their larger competitors. MassMutual, a small retirement benefit services provider, is a great example.
MassMutual is a solid option for businesses that want personalized service from dedicated account managers. Although somewhat on the smaller side, the company offers customer service, educational materials and concierge-level support on par with larger companies. Its pricing structure is perhaps the clearest among all the employee retirement vendors we reviewed. These are some of the reasons we’ve named MassMutual our top pick for transparency in an employee retirement service.
Unlike some of the other best employee retirement providers we reviewed, MassMutual offers transparent pricing. The provider’s administration fees and per-employee fees are indicated for each of the two plan offerings, and custom employee internal expense percentages can be obtained for one of the two plans. 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.
| Feature | New 401k | Elite |
|---|---|---|
| Number of employees | 1 to 500 | 501+ |
| 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 |
Designed for businesses with up to 1 to 500 employees, the provider’s New 401k plan is for businesses that are starting a new 401(k). Employers who want to offer an open universe of funds and ETFs can also sign up for this plan.
The New 401k plan offers full service and recordkeeping to entirely remove administrative burdens from the employer. We found it similar to the 401(k) Essential plan that big-name competitor ADP offers.
The biggest difference between the New 401k and MassMutual’s other plan is the types of investments available. New 401k lacks the self-directed brokerage account options available through the Existing 401k plan.
The provider’s Existing 401k plan is meant for businesses with 501 or more employees or those with an existing 401(k). This option is also best for businesses seeking self-directed brokerage accounts.
There are benefits to offering a 401(k) plan for employers too, not just employees. These include increased employee morale, reduced turnover, and tax advantages.
MassMutual 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. We were impressed with the diversity of funds available to MassMutual customers; few other brands we reviewed came close.
What’s more, MassMutual does not limit the number of investment slots that employers can offer their employees. Employers on the Existing 401k plan can also include the option of a self-directed brokerage account.
Beyond its range of investment options, MassMutual does not collect commissions when buying or selling mutual fund shares, and there are no 12b-1 fees, exchange fees or minimum-balance fees.
In addition to 401(k) plans, MassMutual offers access to more than 15,000 mutual funds and 1,000 exchange-traded funds, giving employees significant choice in how to invest for their retirement.
MassMutual’s main retirement plans have similar employee internal expense percentages and annualized program fee totals, with discounts available for the Existing 401k plan. MassMutual does not charge commissions when buying or selling mutual fund shares, and there are no 12b-1 fees, exchange fees or minimum-balance fees.
Both plans include a one-time install fee of $250 and an annual fee of $500, plus $20 per participant per month. This is among the most affordable pricing we saw in our reviews. Participating employees may also pay annualized program investment fees of at most 0.80%, which is highly competitive with the other employee retirement services we reviewed.
MassMutual’s plans lack an avenue for setting up a plan online; you’ll have to work with a rep, which requires coordinating schedules. However, once your plan is set up, the plan maintenance can be handled online.
MassMutual also supports high employee participation through group enrollment meetings. Abundant educational resources are available to help employees make investment decisions.
Information regarding MassMutual’s customer service is limited. Prospective customers who want a quote can contact the company via phone, email or a contact form. After signing up with MassMutual, the hours during which you can reach customer service will vary. This drawback is unique to MassMutual.
The times during which customers can reach support are based on the companies through which MassMutual invests your employees’ funds. Often, these entities will offer customer service from 7 a.m. to 7 p.m. in their time zone on weekdays. These customer service agents can provide support for those using MassMutual, but only qualified registered representatives can offer investment advice.
MassMutual’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, Vestwell.
Most employee retirement providers offer customization features for their plans. MassMutual mostly, though not entirely, lacks this feature – its plans are primarily pre-packaged and unchangeable. For a vendor with more customization options, consider ADP.
You also can’t set up your MassMutual plan online as with most other employee retirement brands. Your online dashboard’s appearance and your customer service hours will also vary based on the providers with which MassMutual works for your plan. For more reliability and less variation on both fronts, we recommend Paychex.
Looking for other alternatives to MassMutual? Consider our review of ADP employee retirement or our Paychex employee retirement review.
To determine our best pick for transparency in employee retirement plans, we researched plan providers that provided all the critical information upfront. 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. 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. MassMutual checked off all these boxes for transparency.
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.
MassMutual doesn’t charge sales loads, 12b-1 fees, exchange fees, or minimum balance fees. Employees participating in MassMutual plans pay annualized program fees of up to 0.80%.
We recommend MassMutual for …
We don’t recommend MassMutual for …
