A Brief Overview of Ascensus
Ascensus, LLC is a financial services company that offers a variety of savings plans, including education, health, ABLE, and retirement savings. They’re known for being the “largest independent record-keeping services partner, third-party administrator, and government health savings facilitator in the United States,” according to their website.
With over 40 years of experience in the industry, as of 2022, Ascensus was serving over 15 million individuals through their range of accounts as they push forward the trademarks of Ascensus: “People Matter. Quality First. Integrity Always.” You can learn more about their services by exploring what they offer on ascensus.com.
Ascensus 401(k) Plan Features
Every 401(k) plan has unique features that make it the right choice for some investors and business owners.
Here, we’ll explore the key elements of the Ascensus plan.
Investment options
Ascensus offers customized saving strategies to help you choose investments that match your risk appetite and savings goals.
Their 401(k) accounts come in traditional and Roth options to accommodate tax-deferral and after-tax investment structures. Beyond 401(k)s, they also offer MEP and PEPs, 403(b)s, SEP and SIMPLE IRAs, and other account types that help employees and sole proprietors save for retirement.
Investing in a diverse set of assets is essential to avoid risk. The various funds and asset types available through their retirement savings plans can help you diversify your investments to hedge against risks and maximize your potential returns. These includes mutual funds, ETFs, stocks, bonds, options, and other investment securities.
Fee structure
401(k) plans can have significant fees attached to your investments and earnings because of the cost of the fund managers who oversee the plan and its investments. Like other 401(k) plans, the Ascensus plans will charge a percentage or a fixed rate for administrative fees, setup costs, maintenance costs, record-keeping expenses, and investment management.
The underlying investment options also come with built-in fees, or expense ratios. When you choose an actively managed fund, the fees are often higher since you’ll pay an investment manager to actively trade in an effort to maximize profit. If you select a passively managed fund, your costs could be substantially lower.
As always, there is a possibility of incurring additional fees for other services or features.
Employer contributions and matching
Depending on your employer’s plan, you may have access to an employer match with your 401(k). To accommodate large companies and small businesses, the Ascensus plan allows various employer matching formulas and contribution tiers to encourage employees to participate and help them increase their compensation and savings.
The benefits of an employer match are immense, as they can accelerate your retirement savings and outcomes. Note that the IRS is responsible for determining compliance with overall contribution limits to 401(k)s each year, but your employer and their plan administrator can determine matching percentages, like a 3% fixed employer contribution, for example.
Access to account management tools
Ascensus emphasizes its fiduciary duty to clients and provides streamlined, accessible tools to help account holders track and monitor their savings. The online platform and mobile app allow you to be notified of investment updates, manage your beneficiaries, and monitor your savings levels.
Because you’ll likely be contributing to your 401(k) during each pay period, choosing a platform that makes it easy to check your finances and make changes, if needed, is essential. An online portal makes this especially easy. Check any device and operating system requirements before choosing your plan to make sure the platform is compatible.
Customer Experience with Ascensus 401(k) Plan
When choosing a 401(k) plan provider, selecting a company that is easy to work with and supportive is essential. Let’s review the customer experience you can expect when Ascensus is your plan administrator.
Account setup process
Because of its integrated online portal, all enrollment and setup processes are streamlined. You’ll submit personal details online and electronically sign forms or make agreements all through the web portal, making the process efficient and timely, with no massive waiting periods.
Customer support
When you invest your money, you’ll want to be sure your financial institution includes plan services like dedicated customer support through a third-party administrator. Ascensus offers excellent customer support with email and phone options.
They break down their support channels by account type, so if you’re an HSA investor, for instance, you can get in touch with the right person, or if you’re a retirement fund investor, you can get in touch with someone who knows how to help you.
They also have a general phone line if you aren’t sure who to contact. The various channels allow them to offer faster response times and dedicate their team to resolving your issues.
Educational resources
Ascensus offers educational resources to help investors improve financial literacy. They cover topics like savings trends and regulation updates, serving as a news outlet for the latest happenings in finance and savings.
They also offer a micro-learning series covering the various retirement plan types.
Comparing the Ascensus 401(k) Plan to Other Providers
As we mentioned in the beginning, there are many plan providers you can choose from. Here’s a breakdown of how Ascensus stacks up against some large industry options:
Fidelity
- Background: Fidelity is known for its robust mobile app, suitability for retirement savers, active traders, and retirement planning assistance.
- Investment options, fees, and account management tools: They offer zero-expense ratio index funds and offer investors extensive mutual funds and ETF options. They are also highly rated for their online platform and mobile app and offer funds specifically geared toward small businesses, with fees varying depending on account type.
- Employer matching programs, contribution limits, and formulas offered: They offer pre-tax or Roth options, and employees can contribute up to the IRS maximum of $22,500 in 2023.
Vanguard
- Background: Vanguard stands out for its low-cost investment options for long-term investors, like retirement savers. They don’t have a strong trading platform, which makes them less ideal for active traders.
- Investment options, fees, and account management tools: This provider has a wide range of mutual fund options (over 100, including lower-cost Admiral Shares), ETFs, and more. They offer an online account management tool, and the fees may vary depending on your investment choices. They have no minimum initial investment.
- Employer matching programs, contribution limits, and formulas offered: They offer pre-tax or Roth options, and employees can contribute up to the IRS maximum of $22,500 in 2023.
Charles Schwab
- Background: Charles Schwab is suitable for beginner investors and offers advanced investment research and a wide variety of funds with low expenses and transaction fees.
- Investment options, fees, and account management tools: Charles Schwab claims a robust mobile app. The account fees vary based on the business and the investments, but they offer customizable plans.
- Employer matching programs, contribution limits, and formulas offered: They offer pre-tax or Roth options, and employees can contribute up to the IRS maximum of $22,500 in 2023.
Ascensus
- Background: They are known for being the “largest independent record-keeping services partner, third-party administrator, and government health savings facilitator in the United States.”
- Investment options, fees, and account management tools: Ascensus has a high-performing online portal with various investment options to match an individual’s risk appetite. They charge a percentage or a fixed rate for administrative fees, setup costs, maintenance costs, record-keeping expenses, and investment management.
- Employer matching programs, contribution limits, and formulas offered: They offer a range of employer matching scales to accommodate the needs of each business. They offer pre-tax or Roth options, and employees can contribute up to the IRS maximum of $22,500 in 2023.
What to consider when choosing a 401(k) plan provider?
When choosing a 401(k) plan provider, there is much to consider. Keep in mind the following four key points:
- Ensure the provider aligns with your financial goals and risk tolerance and offers various investment options to suit your preferences.
- Consider the fee structure and its impact on long-term returns. Some fees have hidden implications that can diminish your earning significantly.
- Evaluate the quality of customer service and support resources. You’ll likely need to get in touch with your provider during your lifetime, so choose a plan administrator who is supportive and accessible.
- Assess the reputation and trustworthiness of the provider. There are many top performers in the industry.
Need Help Finding & Moving Your Old 401(k) Retirement Plans?
The Ascensus 401(k) Plan offers a range of benefits and drawbacks depending on your needs as an investor. When choosing a financial institution for your retirement savings, pick a provider who matches your goals.
Conduct in-depth research and speak to financial professionals or advisors to get a unique perspective before you choose an institution. If you need assistance finding and moving your old 401(k) retirement plans, Capitalize can help you complete the transfer. We are your trusted partner here to help you build your retirement savings.
Learn how we can help you set up for your financial future.
Reviewed by
