ADP is one of the longest-running payroll and 401(k) companies in the country. It started in 1949, going public in 1961. While ADP specializes in HR and administrative services, the company also provides payroll integration with retirement services for businesses of all sizes. The company caters retirement plans to the business’ specific needs and size, which makes ADP have a personal touch, even though it’s a very large company.

Who it’s best for

ADP is a good fit for virtually any size of business. It is especially attractive to small businesses, though, because the company provides all-in-one integration for payroll, HR, benefits and retirement services. ADP offers numerous plans for small businesses, and also handles all the annual compliance tests with the IRS and the Department of Labor. If you choose to use ADP for your payroll as well, the integration with its 401(k) plan is seamless.

Check out our roundup of the Best 401(k) Companies for Small Business

Investment options

ADP’s investment options run the gamut – from traditional 401(k) to Roth 401(k) SIMPLE IRA, Safe Harbor 401(k) as well as a profit-sharing option. ADP also offers investments from more than 130 investment managers, and the company breaks down these options into three categories to make it simpler for employees to understand and make a decision based on their knowledge about investments and their level of risk.

Setup/plan administration

ADP has a large team of people to help you set up and administer your 401(k) plan the way you want. After consulting with an ADP professional, you’ll be able to choose the funding options you want, whether your business will be providing matching funds and what other services you want to offer. Much of ADP’s services will be set up so the entire process is automated for you through an easy-to-use interface.

Administrative costs

It’s not very easy to determine what your costs will be with ADP’s 401(k) plan. Part of this is because ADP provides so many services that they want to be able to offer a customizable solution that’s right for your business. How much ADP charges for each of the services they offer is based upon which specific service(s) you choose (and how many) as well as how many employees your company has. Unfortunately, this information isn’t readily available. You have to request a quote directly from the company.

Employer and employee customer service

ADP is well-known for the quality customer service it provides both employers and employees. Each employer gets a personal assistant at ADP who helps set up and administer the plan on an ongoing basis. However, ADP touts the company’s automation. So, in theory, the company says you shouldn’t need to contact them very often. For employees, the customer service experience goes beyond just phone support. ADP offers an outstanding website that’s easy to navigate as well a mobile app that allows all employees to research funds and make and/or change investments.

What’s lacking

There isn’t much that is missing from ADP’s 401(k) plan offerings. One of the common complaints about the company, though, is that it charges high fees for the investments the company offers. This is something that will be very specific to each employee and plan, though, as different funds have different fees associated with them. It’s important that all plan participants do their research before choosing the funds for their 401(k) plan.

How to get started

  • The best way to get started with ADP is to go to their website and click the “Start Quote” button and fill out your pertinent contact information and some basic information about your company.
  • An ADP associate will then contact you to set up a time to have a consultative phone call or possibly even an in-person visit.
  • If you’d rather do this all over the phone, you can call them at (844) 912-3742.


  • Great for small businesses that need help with a simple and easy-to-administer 401(k) plan
  • Reputable company that has been in business for many years
  • Offers many flexible options for pre- and post-tax contributions to a 401(k)
  • Offers dedicated customer support services for employers and employees, and an outstanding website and mobile app
  • Can offer a fully-integrated payroll and benefits program as well that makes it easy to automate almost all HR processes for small businesses


  • Not quite clear up front exactly what the cost of the services are
  • Some of the funds available in the 401(k) plan have high fees
  • Company’s extensive offerings might be confusing and overwhelming to some small business owners

Rating breakdown

  • Overall: 4.4
  • Investment Options: 4.7
  • Administrative Costs: 3.7
  • Ease of Set-Up: 4.2
  • Employer and Employee Customer Service: 4.7
  • Reputation: 4.8