Updated 2026-03-20
Fidelity vs Paychex 401(k) Comparison
Compare Fidelity Investments (#1, 9.5/10) and Paychex (#16, 7.0/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Fidelity | Paychex |
|---|---|---|
| Overall Score | 9.5/10 | 7.0/10 |
| Rank | #1 | #16 |
| AUM | $4.5 trillion | $48 billion |
| Participants | 43 million | 730,000 |
| Plan Sponsors | 23,000+ | 740,000+ |
| Founded | 1946 | 1971 |
Ratings Comparison
| Category | Fidelity | Paychex |
|---|---|---|
| Fees & Costs | 4.9/5 | 3.4/5 |
| Investment Options | 4.9/5 | 3.6/5 |
| Customer Service | 4.8/5 | 3.8/5 |
| Mobile App | 4.7/5 | 3.5/5 |
Fee Comparison
| Fee Type | Fidelity | Paychex |
|---|---|---|
| Admin Fees | $0 - varies by plan | $80 - $150/month + per-employee fees |
| Expense Ratios | 0.00% - 0.75% | 0.10% - 1.2% |
| Trading Fees | $0 for stocks/ETFs | Included |
| Advisory Fees | 0.35% - 1.0% | 0.50% - 1.0% |
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
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 | Fidelity | Paychex |
|---|---|---|
| Rollover Platform | NetBenefits | Paychex Flex |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via NetBenefits, Phone (800-343-3548), Fidelity branch offices | Online via Paychex Flex, Phone (800-741-6277), Through plan administrator |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA, Required Minimum Distributions |
Which Should You Choose?
Choose Fidelity if you want:
- Large employers
- Cost-conscious investors
- Self-directed investors
- Solo 401(k) seekers
Choose Paychex if you want:
- Paychex payroll clients
- Small to mid-size businesses
- Companies wanting bundled HR+retirement
- PEO participants
Our Verdict: Fidelity vs Paychex
Fidelity Investments wins this comparison with a score of 9.5/10 vs 7.0/10. 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 Paychex: Complete 401(k) Comparison for 2026
Choosing between Fidelity Investments and Paychex for your 401(k) is an important decision that affects your retirement savings. Fidelity offers largest provider while Paychex is known for payroll integration. In terms of fees, Fidelity charges 0.00% - 0.75% expense ratios compared to Paychex's 0.10% - 1.2%. Fidelity manages $4.5 trillion in assets and serves 43 million participants, while Paychex has $48 billion AUM and 730,000 participants.
Key Differences: Fidelity vs Paychex
When comparing Fidelity and Paychex, consider their core strengths: Fidelity excels with zero expense ratio index funds (fzrox, fzilx), 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. Fidelity's customer service rating is 4.8/5 compared to Paychex's 3.8/5. For mobile experience, Fidelity scores 4.7/5 while Paychex scores 3.5/5.
Which Provider is Right for You?
Choose Fidelity if you prioritize 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 Fidelity and Paychex provider pages.
Frequently Asked Questions
Fidelity Investments scores higher in our 2026 rankings with 9.5/10. Fidelity is best for large employers, while Paychex is best for paychex payroll clients. 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. Paychex charges 0.10% - 1.2% expense ratios with admin fees of $80 - $150/month + per-employee fees. Fidelity's fees rating is 4.9/5 compared to Paychex's 3.4/5.
Yes, you can roll over between Fidelity and Paychex. Fidelity uses NetBenefits for rollovers, while Paychex uses Paychex Flex. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Fidelity 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.
Fidelity scores 4.9/5 for investment options, while Paychex scores 3.6/5. Both offer target-date funds, index funds, and managed accounts. Fidelity'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. Fidelity is best for large employers, cost-conscious investors, self-directed investors, solo 401(k) seekers. Paychex is best for paychex payroll clients, small to mid-size businesses, companies wanting bundled hr+retirement, peo participants. Compare admin fees: Fidelity charges $0 - varies by plan 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