Choosing the right 401k provider to manage your retirement savings is an important financial decision. Two leading providers, Transamerica and Fidelity, both offer solid 401k plans. But how do you know which is the better choice?
In this in-depth guide, we’ll compare Transamerica and Fidelity 401k plans side-by-side. We’ll analyze the pros, cons, fees, investment options, tools, and more to help you decide which 401k provider is right for your needs.
Whether you are reviewing plans offered by your employer or deciding where to roll over a 401k, use this advice to select the ideal 401k partner.
A Brief Comparison Table
| Feature | Transamerica | Fidelity |
| Fees | $50 – $150 annual fee. 0.20% – 0.90% management fee. | No annual account fees. ~0.35% management fee. |
| Investment Options | Over 19,000 mutual funds. Index, target date, managed accounts. | Over 3,000 mutual funds and ETFs. Index, target date, managed. |
| Account Tools | Retirement calculator. Education articles and videos. | Robust website, mobile app, planning tools, webinars. |
| Advisory Services | Phone and online support from advisors. | Phone, in-person, online support from advisors. |
| Rollovers | Accepts incoming and outgoing 401k rollovers. | Rollover specialists facilitate consolidation. |
| Experience | Website and mobile app just okay. Mixed reviews. | Top-rated digital experience. High customer satisfaction. |
Overview of Transamerica and Fidelity
First, let’s look at brief profiles of each 401k provider:
Transamerica
- Founded in 1904, headquartered in Baltimore
- Provides insurance, investment, and retirement services
- Manages over $670 billion in retirement accounts
- Serves over 19 million customers worldwide
Fidelity
- Founded in 1946, headquartered in Boston
- Leading provider of financial services and investment management
- Manages over $11 trillion in total customer assets
- Serves 35+ million individual investors
Also Read:Comparison Between New York Life And Transamerica.
Key Differences Between Transamerica and Fidelity
Both are large, well-established companies with extensive experience in retirement services. Now let’s compare their 401k plan features.
1. Account Fees and Pricing
One of the most crucial factors is how much you’ll pay in fees for your 401k account:
Transamerica
- No account setup or termination fees
- Annual account fee around $50 – $150
- Administration and management fees of 0.20% – 0.90% of assets
Fidelity
- No account setup fees or annual account fees
- Typically no administration fees
- Average management fees of 0.35% of assets
Fidelity offers lower overall fees on average without account or administration costs. But fees can vary based on your plan.
2. Investment Choices and Options
The investment options available in the 401k lineup are also key:
Transamerica
- Offers access to over 19,000 mutual funds
- Index funds, target date funds, managed accounts
- Brokerage link option for expanded choices
Fidelity
- Over 3,000 mutual funds and ETFs available
- Index funds, target date funds, managed accounts
- Self-directed brokerage option available
Both providers offer extensive investment options beyond the core lineup. Fidelity has a slightly more streamlined menu of choices.
3. 401k Tools and Resources
Having robust tools can make managing your 401k easier:
Transamerica
- Online portal to manage account
- Retirement income calculator
- Education articles and videos
Fidelity
- Easy-to-use website and mobile app
- Suite of planning tools and calculators
- Webinars, videos, and reference materials
Fidelity appears to have a digital edge with user-friendly apps, calculators, and education resources.
4. Financial Advisory Services
Getting professional investment advice is another key consideration:
Transamerica
- Access to dedicated representatives
- Advisors available by phone or online
- Full range of financial guidance available
Fidelity
- Phone support from representatives
- Branch office locations for in-person support
- Online advice and managed account options
Both Fidelity and Transamerica offer phone access to advisors. Fidelity also provides in-person support.
5. Rollover and Account Consolidation
If you have multiple 401k accounts, consolidation is beneficial:
Transamerica
- Support for incoming and outgoing rollovers
- Allows consolidation of old 401ks into one place
- Quick online rollover request form
Fidelity
- Rollover specialists to help consolidate
- Accepts rollovers from previous employers
- Simple process to rollover old 401k funds
Transamerica and Fidelity both make consolidating old 401ks easy through their online or phone support.
6. Mobile App and Site Experience
A user-friendly online and mobile experience is valuable for managing your account:
Transamerica
- Website and mobile app available
- Check balances, make transactions
- Site is dated design and can be slow
Fidelity
- Top-rated website and mobile apps
- Easy to use with robust features
- Modern design and very responsive
Fidelity appears to provide a superior digital experience compared to Transamerica based on user reviews.
7. Customer Support and Satisfaction
Support when you need it and overall satisfaction:
Transamerica
- Phone, email, and online chat support
- Mixed reviews from customers
- Complaints about poor service
Fidelity
- 24/7 phone support and branch offices
- Consistently high customer satisfaction
- Quick response times and knowledgeable staff
Fidelity is the clear winner when it comes to customer service quality based on consumer sentiment.
8. Key Takeaways
To recap, some of the major differences:
- Fees are lower on average with Fidelity
- Fidelity offers a smoother digital experience
- Fidelity provides better phone and in-person support
- Investment choices are extensive with both
- Account rollovers and consolidation easy with both
So which provider is better based on this analysis?
Recommendation: Fidelity As Top Choice
Based on the extensive features comparison, Fidelity stands out as the better 401k provider overall:
- Lower account fees can save you money
- More user-friendly web and mobile apps
- Top-rated customer service and support
- Extensive investment options and account tools
Fidelity is likely the best choice for your 401k needs thanks to competitive pricing, superior technology, excellent service, and robust investing capabilities.
Unless you require specific funds limited to Transamerica, Fidelity can meet your needs while keeping fees low and the digital experience smooth. For comprehensive 401k management, choose Fidelity.
Also Read:Comparison Between AIG And New York Life.
Frequently Asked Questions (FAQs)
For additional details, here are answers to common questions:
Which is better Fidelity or Transamerica?
Fidelity is better overall thanks to lower fees, better technology, and outstanding customer service compared to Transamerica. Fidelity is a top choice for 401k management.
Is Transamerica and Fidelity the same?
No, Transamerica and Fidelity are competitors in providing 401k accounts and other financial services. Fidelity has lower costs and more user-friendly services.
How do I transfer my 401k from Transamerica to Fidelity?
You can request a direct rollover by contacting Fidelity. They will help facilitate smoothly transferring your 401k from Transamerica to a new account at Fidelity.
How much does Fidelity charge to manage 401k?
Fidelity has no account fees and average investment management fees around 0.35% of assets. Actual fees vary based on specific funds chosen. There are no administration fees.
The Final Takeaway
Choosing the right 401k provider matters for the long-run growth of your retirement savings. Opting for lower fees, quality services, and robust tools provides an advantage. For most investors, Fidelity stands out as a top choice.
Make sure to evaluate all your options fully when comparing 401k plans. But you can expect an excellent overall experience if you choose Fidelity to manage your company’s plan or rollover your 401k. Partner with a provider like Fidelity to enjoy top-class retirement investing services.
