Updated 2026-03-20
Paychex vs Lincoln Financial 401(k) Comparison
Compare Paychex (#16, 7.0/10) and Lincoln Financial (#17, 6.9/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Paychex | Lincoln Financial |
|---|---|---|
| Overall Score | 7.0/10 | 6.9/10 |
| Rank | #16 | #17 |
| AUM | $48 billion | $350 billion |
| Participants | 730,000 | 8 million |
| Plan Sponsors | 740,000+ | 10,000+ |
| Founded | 1971 | 1905 |
Ratings Comparison
| Category | Paychex | Lincoln Financial |
|---|---|---|
| Fees & Costs | 3.4/5 | 3.3/5 |
| Investment Options | 3.6/5 | 3.8/5 |
| Customer Service | 3.8/5 | 3.9/5 |
| Mobile App | 3.5/5 | 3.4/5 |
Fee Comparison
| Fee Type | Paychex | Lincoln Financial |
|---|---|---|
| Admin Fees | $80 - $150/month + per-employee fees | Varies by plan size |
| Expense Ratios | 0.10% - 1.2% | 0.10% - 1.5% |
| Trading Fees | Included | Plan dependent |
| Advisory Fees | 0.50% - 1.0% | 0.40% - 1.0% |
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
Lincoln Financial Strengths
- Strong guaranteed income and annuity options
- Insurance-backed stability
- Lincoln Director platform for plan sponsors
- Managed account services through Lincoln Alliance
Rollover, Loans & Withdrawals
| Feature | Paychex | Lincoln Financial |
|---|---|---|
| Rollover Platform | Paychex Flex | Lincoln Financial Portal |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Paychex Flex, Phone (800-741-6277), Through plan administrator | Online via Lincoln Financial portal, Phone (800-454-6265), Through plan administrator |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA, Required Minimum Distributions | Lump sum, Partial withdrawal, Annuity conversion, Installment payments, Rollover to IRA, Required Minimum Distributions |
Which Should You Choose?
Choose Paychex if you want:
- Paychex payroll clients
- Small to mid-size businesses
- Companies wanting bundled HR+retirement
- PEO participants
Choose Lincoln Financial if you want:
- Companies wanting guaranteed income options
- Insurance-focused employers
- Mid-size to large plans
- Annuity seekers
Our Verdict: Paychex vs Lincoln Financial
Paychex wins this comparison with a score of 7.0/10 vs 6.9/10. Paychex excels with seamless payroll-to-401(k) contribution processing, 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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Paychex vs Lincoln Financial: Complete 401(k) Comparison for 2026
Choosing between Paychex and Lincoln Financial for your 401(k) is an important decision that affects your retirement savings. Paychex offers payroll integration while Lincoln Financial is known for top 10 recordkeeper. In terms of fees, Paychex charges 0.10% - 1.2% expense ratios compared to Lincoln Financial's 0.10% - 1.5%. Paychex manages $48 billion in assets and serves 730,000 participants, while Lincoln Financial has $350 billion AUM and 8 million participants.
Key Differences: Paychex vs Lincoln Financial
When comparing Paychex and Lincoln Financial, consider their core strengths: Paychex excels with seamless payroll-to-401(k) contribution processing, while Lincoln Financial stands out for strong guaranteed income and annuity options. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Paychex's customer service rating is 3.8/5 compared to Lincoln Financial's 3.9/5. For mobile experience, Paychex scores 3.5/5 while Lincoln Financial scores 3.4/5.
Which Provider is Right for You?
Choose Paychex if you prioritize paychex payroll clients. Choose Lincoln Financial if you're looking for companies wanting guaranteed income options. 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 Paychex and Lincoln Financial provider pages.
Frequently Asked Questions
Paychex scores higher in our 2026 rankings with 7.0/10. Paychex is best for paychex payroll clients, while Lincoln Financial is best for companies wanting guaranteed income options. The right choice depends on your employer's plan and your priorities.
Paychex charges expense ratios of 0.10% - 1.2% with admin fees of $80 - $150/month + per-employee fees. Lincoln Financial charges 0.10% - 1.5% expense ratios with admin fees of Varies by plan size. Paychex's fees rating is 3.4/5 compared to Lincoln Financial's 3.3/5.
Yes, you can roll over between Paychex and Lincoln Financial. Paychex uses Paychex Flex for rollovers, while Lincoln Financial uses Lincoln Financial Portal. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Paychex offers 401(k) loans. Lincoln Financial offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.
Paychex scores 3.6/5 for investment options, while Lincoln Financial scores 3.8/5. Both offer target-date funds, index funds, and managed accounts. Paychex's investment options include Mutual Funds, Target Date Funds, Index Funds. Lincoln Financial offers Mutual Funds, Target Date Funds, Fixed Annuities.
For small businesses, consider plan minimums and per-participant costs. Paychex is best for paychex payroll clients, small to mid-size businesses, companies wanting bundled hr+retirement, peo participants. Lincoln Financial is best for companies wanting guaranteed income options, insurance-focused employers, mid-size to large plans, annuity seekers. Compare admin fees: Paychex charges $80 - $150/month + per-employee fees vs Lincoln Financial'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: 2026-03-20