Updated 2026-03-30
Fidelity vs Merrill 401(k) Comparison
Compare Fidelity Investments (#1, 9.5/10) and Merrill Lynch (#8, 8.0/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Fidelity | Merrill |
|---|---|---|
| Overall Score | 9.5/10 | 8.0/10 |
| Rank | #1 | #8 |
| AUM | $4.5 trillion | $3.0 trillion |
| Participants | 43 million | 5 million |
| Plan Sponsors | 23,000+ | 2,500+ |
| Founded | 1946 | 1914 |
Ratings Comparison
| Category | Fidelity | Merrill |
|---|---|---|
| Fees & Costs | 4.9/5 | 3.3/5 |
| Investment Options | 4.9/5 | 4.5/5 |
| Customer Service | 4.8/5 | 4.1/5 |
| Mobile App | 4.7/5 | 4.2/5 |
Fee Comparison
| Fee Type | Fidelity | Merrill |
|---|---|---|
| Admin Fees | $0 - varies by plan | Varies by plan size |
| Expense Ratios | 0.00% - 0.75% | 0.03% - 1.5% |
| Trading Fees | $0 for stocks/ETFs | $0 - $6.95 |
| Advisory Fees | 0.35% - 1.0% | 0.45% - 1.5% |
Fidelity Strengths
- Zero expense ratio index funds (FZROX, FZILX)
- Industry-leading mobile app and online platform
- 24/7 customer service with dedicated retirement specialists
- Extensive investment options including BrokerageLink
Merrill Strengths
- Bank of America Preferred Rewards benefits
- Strong advisory and guidance services
- complete financial planning
- Wide investment selection
Rollover, Loans & Withdrawals
| Feature | Fidelity | Merrill |
|---|---|---|
| Rollover Platform | NetBenefits | Benefits OnLine |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via NetBenefits, Phone (800-343-3548), Fidelity branch offices | Online via Benefits OnLine, Phone (888-968-4015), Bank of America branches |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA |
Which Should You Choose?
Choose Fidelity if you want:
- Large employers
- Cost-conscious investors
- Self-directed investors
- Solo 401(k) seekers
Choose Merrill if you want:
- BofA customers
- Advice seekers
- Large employers
- Full-service needs
Our Verdict: Fidelity vs Merrill
Fidelity Investments wins this comparison with a score of 9.5/10 vs 8.0/10. Fidelity excels with zero expense ratio index funds (fzrox, fzilx), 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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Fidelity vs Merrill: Complete 401(k) Comparison for 2026
Choosing between Fidelity Investments and Merrill Lynch for your 401(k) is an important decision that affects your retirement savings. Fidelity offers largest provider while Merrill is known for bofa integration. In terms of fees, Fidelity charges 0.00% - 0.75% expense ratios compared to Merrill's 0.03% - 1.5%. Fidelity manages $4.5 trillion in assets and serves 43 million participants, while Merrill has $3.0 trillion AUM and 5 million participants.
Key Differences: Fidelity vs Merrill
When comparing Fidelity and Merrill, consider their core strengths: Fidelity excels with zero expense ratio index funds (fzrox, fzilx), while Merrill stands out for bank of america preferred rewards benefits. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Fidelity's customer service rating is 4.8/5 compared to Merrill's 4.1/5. For mobile experience, Fidelity scores 4.7/5 while Merrill scores 4.2/5.
Which Provider is Right for You?
Choose Fidelity if you prioritize large employers. Choose Merrill if you're looking for bofa customers. 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 Fidelity and Merrill provider pages.
Frequently Asked Questions
Fidelity Investments scores higher in our 2026 rankings with 9.5/10. Fidelity is best for large employers, while Merrill is best for bofa customers. The right choice depends on your employer's plan and your priorities.
Fidelity charges expense ratios of 0.00% - 0.75% with admin fees of $0 - varies by plan. Merrill charges 0.03% - 1.5% expense ratios with admin fees of Varies by plan size. Fidelity's fees rating is 4.9/5 compared to Merrill's 3.3/5.
Yes, you can roll over between Fidelity and Merrill. Fidelity uses NetBenefits for rollovers, while Merrill uses Benefits OnLine. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Fidelity offers 401(k) loans. Merrill offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.
Fidelity scores 4.9/5 for investment options, while Merrill scores 4.5/5. Both offer target-date funds, index funds, and managed accounts. Fidelity's investment options include Index Funds, Target Date Funds, Mutual Funds. Merrill offers Mutual Funds, ETFs, Stocks.
For small businesses, consider plan minimums and per-participant costs. Fidelity is best for large employers, cost-conscious investors, self-directed investors, solo 401(k) seekers. Merrill is best for bofa customers, advice seekers, large employers, full-service needs. Compare admin fees: Fidelity charges $0 - varies by plan vs Merrill's Varies by plan size.
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: 2026-03-30