Updated 2026-03-20
Empower vs Paychex 401(k) Comparison
Compare Empower Retirement (#4, 8.7/10) and Paychex (#16, 7.0/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Empower | Paychex |
|---|---|---|
| Overall Score | 8.7/10 | 7.0/10 |
| Rank | #4 | #16 |
| AUM | $1.4 trillion | $48 billion |
| Participants | 18 million | 730,000 |
| Plan Sponsors | 71,000+ | 740,000+ |
| Founded | 2014 | 1971 |
Ratings Comparison
| Category | Empower | Paychex |
|---|---|---|
| Fees & Costs | 4.3/5 | 3.4/5 |
| Investment Options | 4.2/5 | 3.6/5 |
| Customer Service | 4.3/5 | 3.8/5 |
| Mobile App | 3.8/5 | 3.5/5 |
Fee Comparison
| Fee Type | Empower | Paychex |
|---|---|---|
| Admin Fees | Varies by plan size | $80 - $150/month + per-employee fees |
| Expense Ratios | 0.03% - 1.0% | 0.10% - 1.2% |
| Trading Fees | Plan dependent | Included |
| Advisory Fees | 0.25% - 0.89% | 0.50% - 1.0% |
Empower Strengths
- Strong participant education programs
- Excellent plan sponsor tools
- Competitive institutional pricing
- Personal Capital integration for all-in-one planning
Paychex Strengths
- Seamless payroll-to-401(k) contribution processing
- One of the largest recordkeepers in the US
- Plans for businesses from 1 to 1,000+ employees
- Bundled HR, payroll, and retirement services
Rollover, Loans & Withdrawals
| Feature | Empower | Paychex |
|---|---|---|
| Rollover Platform | Empower.com | Paychex Flex |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Empower.com, Phone (800-338-4015) | Online via Paychex Flex, Phone (800-741-6277), Through plan administrator |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA, Required Minimum Distributions |
Which Should You Choose?
Choose Empower if you want:
- Mid to large employers
- Those valuing education
- Managed account seekers
- Income-focused retirees
Choose Paychex if you want:
- Paychex payroll clients
- Small to mid-size businesses
- Companies wanting bundled HR+retirement
- PEO participants
Our Verdict: Empower vs Paychex
Empower Retirement wins this comparison with a score of 8.7/10 vs 7.0/10. Empower excels with strong participant education programs, making it the stronger choice for most investors in this matchup. However, the best choice ultimately depends on your specific needs, employer plan availability, and investment preferences.
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Empower vs Paychex: Complete 401(k) Comparison for 2026
Choosing between Empower Retirement and Paychex for your 401(k) is an important decision that affects your retirement savings. Empower offers 2nd largest while Paychex is known for payroll integration. In terms of fees, Empower charges 0.03% - 1.0% expense ratios compared to Paychex's 0.10% - 1.2%. Empower manages $1.4 trillion in assets and serves 18 million participants, while Paychex has $48 billion AUM and 730,000 participants.
Key Differences: Empower vs Paychex
When comparing Empower and Paychex, consider their core strengths: Empower excels with strong participant education programs, while Paychex stands out for seamless payroll-to-401(k) contribution processing. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Empower's customer service rating is 4.3/5 compared to Paychex's 3.8/5. For mobile experience, Empower scores 3.8/5 while Paychex scores 3.5/5.
Which Provider is Right for You?
Choose Empower if you prioritize mid to large employers. Choose Paychex if you're looking for paychex payroll clients. Your decision should also consider your employer's plan availability, fee sensitivity, desired investment options, and customer service expectations. For detailed reviews, visit our individual Empower and Paychex provider pages.
Frequently Asked Questions
Empower Retirement scores higher in our 2026 rankings with 8.7/10. Empower is best for mid to large employers, while Paychex is best for paychex payroll clients. The right choice depends on your employer's plan and your priorities.
Empower charges expense ratios of 0.03% - 1.0% with admin fees of Varies by plan size. Paychex charges 0.10% - 1.2% expense ratios with admin fees of $80 - $150/month + per-employee fees. Empower's fees rating is 4.3/5 compared to Paychex's 3.4/5.
Yes, you can roll over between Empower and Paychex. Empower uses Empower.com for rollovers, while Paychex uses Paychex Flex. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Empower offers 401(k) loans. Paychex offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.
Empower scores 4.2/5 for investment options, while Paychex scores 3.6/5. Both offer target-date funds, index funds, and managed accounts. Empower's investment options include Index Funds, Target Date Funds, Mutual Funds. Paychex offers Mutual Funds, Target Date Funds, Index Funds.
For small businesses, consider plan minimums and per-participant costs. Empower is best for mid to large employers, those valuing education, managed account seekers, income-focused retirees. Paychex is best for paychex payroll clients, small to mid-size businesses, companies wanting bundled hr+retirement, peo participants. Compare admin fees: Empower charges Varies by plan size vs Paychex's $80 - $150/month + per-employee fees.
Pavlo Pyskunov
Managing Director & Investment Fund Director
Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.
Last updated: 2026-03-20