Updated 2026-03-30
Schwab vs Merrill 401(k) Comparison
Compare Charles Schwab (#3, 9.1/10) and Merrill Lynch (#8, 8.0/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Schwab | Merrill |
|---|---|---|
| Overall Score | 9.1/10 | 8.0/10 |
| Rank | #3 | #8 |
| AUM | $8.5 trillion | $3.0 trillion |
| Participants | 28 million | 5 million |
| Plan Sponsors | 3,200+ | 2,500+ |
| Founded | 1971 | 1914 |
Ratings Comparison
| Category | Schwab | Merrill |
|---|---|---|
| Fees & Costs | 4.5/5 | 3.3/5 |
| Investment Options | 4.7/5 | 4.5/5 |
| Customer Service | 4.7/5 | 4.1/5 |
| Mobile App | 4.5/5 | 4.2/5 |
Fee Comparison
| Fee Type | Schwab | Merrill |
|---|---|---|
| Admin Fees | $0 - varies by plan | Varies by plan size |
| Expense Ratios | 0.03% - 0.80% | 0.03% - 1.5% |
| Trading Fees | $0 for stocks/ETFs | $0 - $6.95 |
| Advisory Fees | 0% - 0.80% | 0.45% - 1.5% |
Schwab Strengths
- Excellent customer service with 24/7 support
- complete research and education tools
- Schwab Intelligent Portfolios (free robo-advisor)
- Strong integration after TD Ameritrade merger
Merrill Strengths
- Bank of America Preferred Rewards benefits
- Strong advisory and guidance services
- complete financial planning
- Wide investment selection
Rollover, Loans & Withdrawals
| Feature | Schwab | Merrill |
|---|---|---|
| Rollover Platform | Schwab.com | Benefits OnLine |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Schwab.com, Phone (800-724-7526), Schwab branch offices | Online via Benefits OnLine, Phone (888-968-4015), Bank of America branches |
| Distribution Options | Lump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRA | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA |
Which Should You Choose?
Choose Schwab if you want:
- Full-service seekers
- Active traders
- Those wanting local branches
- TD Ameritrade users
Choose Merrill if you want:
- BofA customers
- Advice seekers
- Large employers
- Full-service needs
Our Verdict: Schwab vs Merrill
Charles Schwab wins this comparison with a score of 9.1/10 vs 8.0/10. Schwab excels with excellent customer service with 24/7 support, 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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Schwab vs Merrill: Complete 401(k) Comparison for 2026
Choosing between Charles Schwab and Merrill Lynch for your 401(k) is an important decision that affects your retirement savings. Schwab offers full service while Merrill is known for bofa integration. In terms of fees, Schwab charges 0.03% - 0.80% expense ratios compared to Merrill's 0.03% - 1.5%. Schwab manages $8.5 trillion in assets and serves 28 million participants, while Merrill has $3.0 trillion AUM and 5 million participants.
Key Differences: Schwab vs Merrill
When comparing Schwab and Merrill, consider their core strengths: Schwab excels with excellent customer service with 24/7 support, 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. Schwab's customer service rating is 4.7/5 compared to Merrill's 4.1/5. For mobile experience, Schwab scores 4.5/5 while Merrill scores 4.2/5.
Which Provider is Right for You?
Choose Schwab if you prioritize full-service seekers. 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 Schwab and Merrill provider pages.
Frequently Asked Questions
Charles Schwab scores higher in our 2026 rankings with 9.1/10. Schwab is best for full-service seekers, while Merrill is best for bofa customers. The right choice depends on your employer's plan and your priorities.
Schwab charges expense ratios of 0.03% - 0.80% with admin fees of $0 - varies by plan. Merrill charges 0.03% - 1.5% expense ratios with admin fees of Varies by plan size. Schwab's fees rating is 4.5/5 compared to Merrill's 3.3/5.
Yes, you can roll over between Schwab and Merrill. Schwab uses Schwab.com for rollovers, while Merrill uses Benefits OnLine. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Schwab 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.
Schwab scores 4.7/5 for investment options, while Merrill scores 4.5/5. Both offer target-date funds, index funds, and managed accounts. Schwab'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. Schwab is best for full-service seekers, active traders, those wanting local branches, td ameritrade users. Merrill is best for bofa customers, advice seekers, large employers, full-service needs. Compare admin fees: Schwab 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