Updated 2026-03-20
Merrill vs Paychex 401(k) Comparison
Compare Merrill Lynch (#8, 8.0/10) and Paychex (#16, 7.0/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Merrill | Paychex |
|---|---|---|
| Overall Score | 8.0/10 | 7.0/10 |
| Rank | #8 | #16 |
| AUM | $3.0 trillion | $48 billion |
| Participants | 5 million | 730,000 |
| Plan Sponsors | 2,500+ | 740,000+ |
| Founded | 1914 | 1971 |
Ratings Comparison
| Category | Merrill | Paychex |
|---|---|---|
| Fees & Costs | 3.3/5 | 3.4/5 |
| Investment Options | 4.5/5 | 3.6/5 |
| Customer Service | 4.1/5 | 3.8/5 |
| Mobile App | 4.2/5 | 3.5/5 |
Fee Comparison
| Fee Type | Merrill | Paychex |
|---|---|---|
| Admin Fees | Varies by plan size | $80 - $150/month + per-employee fees |
| Expense Ratios | 0.03% - 1.5% | 0.10% - 1.2% |
| Trading Fees | $0 - $6.95 | Included |
| Advisory Fees | 0.45% - 1.5% | 0.50% - 1.0% |
Merrill Strengths
- Bank of America Preferred Rewards benefits
- Strong advisory and guidance services
- complete financial planning
- Wide investment selection
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 | Merrill | Paychex |
|---|---|---|
| Rollover Platform | Benefits OnLine | Paychex Flex |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Benefits OnLine, Phone (888-968-4015), Bank of America branches | 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 Merrill if you want:
- BofA customers
- Advice seekers
- Large employers
- Full-service needs
Choose Paychex if you want:
- Paychex payroll clients
- Small to mid-size businesses
- Companies wanting bundled HR+retirement
- PEO participants
Our Verdict: Merrill vs Paychex
Merrill Lynch wins this comparison with a score of 8.0/10 vs 7.0/10. Merrill excels with bank of america preferred rewards benefits, 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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Merrill vs Paychex: Complete 401(k) Comparison for 2026
Choosing between Merrill Lynch and Paychex for your 401(k) is an important decision that affects your retirement savings. Merrill offers bofa integration while Paychex is known for payroll integration. In terms of fees, Merrill charges 0.03% - 1.5% expense ratios compared to Paychex's 0.10% - 1.2%. Merrill manages $3.0 trillion in assets and serves 5 million participants, while Paychex has $48 billion AUM and 730,000 participants.
Key Differences: Merrill vs Paychex
When comparing Merrill and Paychex, consider their core strengths: Merrill excels with bank of america preferred rewards benefits, 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. Merrill's customer service rating is 4.1/5 compared to Paychex's 3.8/5. For mobile experience, Merrill scores 4.2/5 while Paychex scores 3.5/5.
Which Provider is Right for You?
Choose Merrill if you prioritize bofa customers. 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 Merrill and Paychex provider pages.
Frequently Asked Questions
Merrill Lynch scores higher in our 2026 rankings with 8.0/10. Merrill is best for bofa customers, while Paychex is best for paychex payroll clients. The right choice depends on your employer's plan and your priorities.
Merrill charges expense ratios of 0.03% - 1.5% 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. Merrill's fees rating is 3.3/5 compared to Paychex's 3.4/5.
Yes, you can roll over between Merrill and Paychex. Merrill uses Benefits OnLine for rollovers, while Paychex uses Paychex Flex. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Merrill 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.
Merrill scores 4.5/5 for investment options, while Paychex scores 3.6/5. Both offer target-date funds, index funds, and managed accounts. Merrill's investment options include Mutual Funds, ETFs, Stocks. Paychex offers Mutual Funds, Target Date Funds, Index Funds.
For small businesses, consider plan minimums and per-participant costs. Merrill is best for bofa customers, advice seekers, large employers, full-service needs. Paychex is best for paychex payroll clients, small to mid-size businesses, companies wanting bundled hr+retirement, peo participants. Compare admin fees: Merrill 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