Updated 2026-03-30
Vanguard vs Merrill 401(k) Comparison
Compare Vanguard (#2, 9.3/10) and Merrill Lynch (#8, 8.0/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Vanguard | Merrill |
|---|---|---|
| Overall Score | 9.3/10 | 8.0/10 |
| Rank | #2 | #8 |
| AUM | $8.6 trillion | $3.0 trillion |
| Participants | 32 million | 5 million |
| Plan Sponsors | 5,600+ | 2,500+ |
| Founded | 1975 | 1914 |
Ratings Comparison
| Category | Vanguard | Merrill |
|---|---|---|
| Fees & Costs | 5.0/5 | 3.3/5 |
| Investment Options | 4.5/5 | 4.5/5 |
| Customer Service | 4.2/5 | 4.1/5 |
| Mobile App | 4.0/5 | 4.2/5 |
Fee Comparison
| Fee Type | Vanguard | Merrill |
|---|---|---|
| Admin Fees | $0 - $60/year | Varies by plan size |
| Expense Ratios | 0.03% - 0.50% | 0.03% - 1.5% |
| Trading Fees | $0 for Vanguard funds | $0 - $6.95 |
| Advisory Fees | 0.30% | 0.45% - 1.5% |
Vanguard Strengths
- Lowest expense ratios in the industry
- Investor-owned structure aligns interests
- Excellent target-date fund lineup (VTIVX series)
- Admiral Shares offer even lower costs at $3,000 minimum
Merrill Strengths
- Bank of America Preferred Rewards benefits
- Strong advisory and guidance services
- complete financial planning
- Wide investment selection
Rollover, Loans & Withdrawals
| Feature | Vanguard | Merrill |
|---|---|---|
| Rollover Platform | Vanguard.com | Benefits OnLine |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Vanguard.com, Phone (800-523-1188) | 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 Vanguard if you want:
- Buy-and-hold investors
- Cost-minimizers
- Index fund believers
- Long-term planners
Choose Merrill if you want:
- BofA customers
- Advice seekers
- Large employers
- Full-service needs
Our Verdict: Vanguard vs Merrill
Vanguard wins this comparison with a score of 9.3/10 vs 8.0/10. Vanguard excels with lowest expense ratios in the industry, 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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Vanguard vs Merrill: Complete 401(k) Comparison for 2026
Choosing between Vanguard and Merrill Lynch for your 401(k) is an important decision that affects your retirement savings. Vanguard offers lowest costs while Merrill is known for bofa integration. In terms of fees, Vanguard charges 0.03% - 0.50% expense ratios compared to Merrill's 0.03% - 1.5%. Vanguard manages $8.6 trillion in assets and serves 32 million participants, while Merrill has $3.0 trillion AUM and 5 million participants.
Key Differences: Vanguard vs Merrill
When comparing Vanguard and Merrill, consider their core strengths: Vanguard excels with lowest expense ratios in the industry, 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. Vanguard's customer service rating is 4.2/5 compared to Merrill's 4.1/5. For mobile experience, Vanguard scores 4.0/5 while Merrill scores 4.2/5.
Which Provider is Right for You?
Choose Vanguard if you prioritize buy-and-hold investors. 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 Vanguard and Merrill provider pages.
Frequently Asked Questions
Vanguard scores higher in our 2026 rankings with 9.3/10. Vanguard is best for buy-and-hold investors, while Merrill is best for bofa customers. The right choice depends on your employer's plan and your priorities.
Vanguard charges expense ratios of 0.03% - 0.50% with admin fees of $0 - $60/year. Merrill charges 0.03% - 1.5% expense ratios with admin fees of Varies by plan size. Vanguard's fees rating is 5.0/5 compared to Merrill's 3.3/5.
Yes, you can roll over between Vanguard and Merrill. Vanguard uses Vanguard.com for rollovers, while Merrill uses Benefits OnLine. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Vanguard 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.
Vanguard scores 4.5/5 for investment options, while Merrill scores 4.5/5. Both offer target-date funds, index funds, and managed accounts. Vanguard'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. Vanguard is best for buy-and-hold investors, cost-minimizers, index fund believers, long-term planners. Merrill is best for bofa customers, advice seekers, large employers, full-service needs. Compare admin fees: Vanguard charges $0 - $60/year 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