Free Guide · 7 pages
Bundled vs. Unbundled 401(k)
Who does what in your company's plan, what 3(16), 3(21) and 3(38) mean, how each provider is paid, and how to change the structure without disrupting employees.
About This Guide
Who Does What in Your Plan
Every 401(k) needs the same handful of jobs done. In a bundled plan one company does most of them; in an unbundled plan specialists each do one. This guide explains the roles, the fiduciary labels providers use, how money flows through a plan, and what is actually involved in changing the arrangement, so you can decide what is right for your company.
What's Inside
What You'll Find
- The jobs in a 401(k) plan and the questions to ask about each
- 3(16), 3(21) and 3(38) explained in plain English, and what stays with the employer
- A side-by-side comparison of bundled and unbundled plans
- How plan costs are paid: fund expenses, revenue sharing, asset-based and per-participant fees
- What a switch involves, with and without changing recordkeepers, and a typical timeline
- Questions to ask your current provider
Who It's For
- Owners and HR leaders whose plan came as one package from a single provider
- Companies whose plan has grown since it was set up
- Committees preparing for a provider review
Common Questions
About This Guide
No. It is general educational information about how 401(k) plans work. Every plan is different, so please discuss your plan with your ERISA counsel, third-party administrator and tax professional.
Yes. Enter your name, work email and a few details about your company, and you can download the PDF right away. We may follow up to see if it was helpful and to offer a complimentary plan review, and you can tell us if you would rather we did not.
Yes. Contribution limits change every year and SECURE 2.0 provisions are still phasing in. The guide notes the date its information was current and points you to the sources to confirm.
Yes. Many of the plans we review already have a provider. Often we can step in as the plan's investment adviser alongside an independent third-party administrator without changing recordkeepers, so no assets move. A review comes with no cost and no obligation.
Prefer to Talk It Through?
Request a Complimentary Plan Review
Send us your plan's most recent fee disclosure and we will review its costs, investments and structure, then explain what we find in plain terms. No cost and no obligation.
This guide is general educational information, not individualized investment, tax or legal advice and not a substitute for advice from your ERISA counsel or third-party administrator, and is not an offer to buy or sell any security. Investing involves risk, including possible loss of principal. Radius Wealth Management LLC is a Registered Investment Adviser. Registration does not imply a certain level of skill or training. 1 Marina Park Drive #1410, Boston, MA 02210.