Paychex 401k Review: Is It Your Best Option?

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Paychex 401k Review: Is It Your Best Option?

Paychex, Inc. is a retirement, human resource, benefits, and payroll outsourcing firm. Most of its services, including the Paychex 401k plan, are tailored towards small to -sized businesses. The also has a brokerage option, where it acts as an intermediary between buyers and sellers of financial securities.

Founded in 1971 by B. Thomas Golisano, Paychex Flex is currently headquartered in Rochester, New York. The acquired the Lessor Group in 2018. With over 14,300 employees, the Paychex generates annual revenue of $3.38 billion.

Paychex Flex Leadership Team

Martin Mucci – President & Chief Executive Officer

Efrain Rivera – Senior Vice President, Chief Financial Officer, & Treasurer

Frank Fiorille – Vice President, Risk Compliance, & Data Analytics

John B. Gibson, Jr. – Senior Vice President of Services

Maureen J. Lally – Vice President & Chief Marketing Officer

Paychex 401k Plan Overview

are the highlights of Paychex’s 401k Plan.

Setup and Plan Administration

Paychex functions as a primary facilitator throughout the plan setup. It also works as a third-party administrator (TPA) for the retirement plans. To make retirement savings plan maintenance easier, Paychex helps create and manage plan documents, conducts quarterly compliance testing, check & enrolls participants, and processes employee loans. It even prepares your Form 5500 for the IRS.

In addition, the lets you choose the trading platform and investment options while facilitating pre and post-tax employee contributions.


The website,, lets you access all the plan information, including the plan investments, the of participants, plan equity, etc.

Employees can log in to access the account dashboard and use Paychex retirement services such as and check their account balance, manage their contributions and investments, and find information on other investment options. There’s also an app (Google Play and App Store) that employees can use. The app is designed to provide a smooth employee experience and facilitate them with their individual 401k plans.

Range of Features

The offers full fiduciary support by letting you work with GuidedChoice or GuidedSavings, to meet the ERISA 3(38) fiduciary requirements. Paychex also serves as a recordkeeper.

Besides the recordkeeping services, you can also use Paychex as your payroll processor and integrate your services, which will streamline your administrative tasks. You can draw loans against your 401k savings, with Paychex facilitating the loan process.

Additional features include fidelity bond coverage, investment advisory, investment management, and ADP strategic plan services for help choosing better investment options and to monitor fund performance. The plan’s Roth feature helps business owners to streamline the retirement strategy. It also has an automatic enrollment feature that increases plan participation.

You can also integrate ADP’s payroll services for a more managed system that eliminates manual data entry during the setup of your retirement plan. It can also help streamline future administrative tasks.

Portfolio Analysis

The provides thousands of investment options, including target-date funds, model portfolios, and broker rosters from Edward Jones, Merrill Lynch, Ameriprise, and Morgan Stanley.

You can also invest in cost-sharing options among clients and participants.


Paychex provides multi-platform support through a mobile app, live chat, and email. However, until you provide the with your information, the representatives will not disclose any pricing details. Since there is not much information available online, the representatives will try to set up one-on-one meetings with you.

Paychex provides 24/7 customer support to everyone. You can call 1-833-299-0168 to contact reps who can connect you to finance or retirement experts if needed. If you want to a new plan, you can call the sales at 1-833-729-8200.

Fees, Costs & Expenses

According to Paychex, they don’t retain any form of revenue-sharing payments. All participants pay the same investment fees, and the options are diverse and unbiased. The quarterly statements provide a full breakdown of all associated fees. However, they’re not shown on the website beforehand.

The plan fees are also not available on the site. You’ll need to call the company and get a quote, specific to your business and plan goals. Plans do involve a setup fee, monthly fee, investment management fee, and a plan termination fee.

Paychex 401k Review

Paychex has an established 401k plan, the following are some points that set Paychex apart as a brokerage :

  • Paychex has a Rating of 73, which is only slightly below the average in its peer group.
  • This comes out to the top 15% for Total Plan Cost.
  • Paychex’s payroll integration helps streamline clients’ payroll processing.
  • You can manage your plan from anywhere as long as you have internet access.
  • Paychex has partnered with several third-party financial advisors who help you make better investment decisions.
  • There is a lot of investment flexibility and the company takes complete control of your investment requirements.

Paychex’s selling point is it’s integrated. It is extremely helpful to small and -sized businesses.

What is Paychex Best Known for?

With over 650,000 businesses using the ’s services, Paychex is best known for providing all-encompassing integrated retirement planning services to small and -sized businesses.

Paychex is best for:

  • Beginner Investors
  • Small to -Sized Businesses
  • Integrated Services
  • Customizable Plan Services

Paychex’s services are tailored specifically towards small and -sized businesses, helping them streamline their processes, deliver employee benefits, and advise on investments.

Is the Paychex 401k Plan Right for You?

Paychex does a good enough job of providing full information on their process, fees, and features. They work to understand who you are so they can provide you the right plan.