Updated 2026-03-20
Paychex vs Morgan Stanley 401(k) Comparison
Compare Paychex (#16, 7.0/10) and Morgan Stanley at Work (#19, 6.8/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Paychex | Morgan Stanley |
|---|---|---|
| Overall Score | 7.0/10 | 6.8/10 |
| Rank | #16 | #19 |
| AUM | $48 billion | $6.2 trillion |
| Participants | 730,000 | 6 million |
| Plan Sponsors | 740,000+ | 15,000+ |
| Founded | 1971 | 1935 |
Ratings Comparison
| Category | Paychex | Morgan Stanley |
|---|---|---|
| Fees & Costs | 3.4/5 | 3.0/5 |
| Investment Options | 3.6/5 | 4.5/5 |
| Customer Service | 3.8/5 | 4.1/5 |
| Mobile App | 3.5/5 | 4.0/5 |
Fee Comparison
| Fee Type | Paychex | Morgan Stanley |
|---|---|---|
| Admin Fees | $80 - $150/month + per-employee fees | Varies by plan size and services |
| Expense Ratios | 0.10% - 1.2% | 0.03% - 1.5% |
| Trading Fees | Included | $0 for stocks/ETFs via E*Trade |
| Advisory Fees | 0.50% - 1.0% | 0.50% - 1.5% |
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
Morgan Stanley Strengths
- Access to Morgan Stanley financial advisors
- E*Trade self-directed brokerage window
- Full wealth management integration
- Stock plan and equity compensation expertise
Rollover, Loans & Withdrawals
| Feature | Paychex | Morgan Stanley |
|---|---|---|
| Rollover Platform | Paychex Flex | Morgan Stanley at Work Portal |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Paychex Flex, Phone (800-741-6277), Through plan administrator | Online via Morgan Stanley portal, Phone (800-869-3326), Through Morgan Stanley financial advisor, Branch office visit |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA, Required Minimum Distributions | Lump sum, Partial withdrawal, Systematic withdrawals, 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 Morgan Stanley if you want:
- Companies with stock plans
- Employees wanting full brokerage access
- High-net-worth participants
- Self-directed traders
Our Verdict: Paychex vs Morgan Stanley
Paychex wins this comparison with a score of 7.0/10 vs 6.8/10. 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 Morgan Stanley: Complete 401(k) Comparison for 2026
Choosing between Paychex and Morgan Stanley at Work for your 401(k) is an important decision that affects your retirement savings. Paychex offers payroll integration while Morgan Stanley is known for wealth management. In terms of fees, Paychex charges 0.10% - 1.2% expense ratios compared to Morgan Stanley's 0.03% - 1.5%. Paychex manages $48 billion in assets and serves 730,000 participants, while Morgan Stanley has $6.2 trillion AUM and 6 million participants.
Key Differences: Paychex vs Morgan Stanley
When comparing Paychex and Morgan Stanley, consider their core strengths: Paychex excels with seamless payroll-to-401(k) contribution processing, while Morgan Stanley stands out for access to morgan stanley financial advisors. 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 Morgan Stanley's 4.1/5. For mobile experience, Paychex scores 3.5/5 while Morgan Stanley scores 4.0/5.
Which Provider is Right for You?
Choose Paychex if you prioritize paychex payroll clients. Choose Morgan Stanley if you're looking for companies with stock plans. 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 Morgan Stanley provider pages.
Frequently Asked Questions
Paychex scores higher in our 2026 rankings with 7.0/10. Paychex is best for paychex payroll clients, while Morgan Stanley is best for companies with stock plans. 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. Morgan Stanley charges 0.03% - 1.5% expense ratios with admin fees of Varies by plan size and services. Paychex's fees rating is 3.4/5 compared to Morgan Stanley's 3.0/5.
Yes, you can roll over between Paychex and Morgan Stanley. Paychex uses Paychex Flex for rollovers, while Morgan Stanley uses Morgan Stanley at Work Portal. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Paychex offers 401(k) loans. Morgan Stanley 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 Morgan Stanley scores 4.5/5. Both offer target-date funds, index funds, and managed accounts. Paychex's investment options include Mutual Funds, Target Date Funds, Index Funds. Morgan Stanley offers Mutual Funds, Target Date Funds, Index Funds.
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. Morgan Stanley is best for companies with stock plans, employees wanting full brokerage access, high-net-worth participants, self-directed traders. Compare admin fees: Paychex charges $80 - $150/month + per-employee fees vs Morgan Stanley's Varies by plan size and services.
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