Selecting the right 401(k) provider is one of the most significant decisions HR and Finance teams at mid-sized employers can make. The process often starts, and succeeds or fails, with the quality of your 401(k) RFP template. The Department of Labor (DOL) emphasizes that plan sponsors have a fiduciary responsibility to prudently select and monitor service providers, a process that hinges on a well-structured RFP (dol.gov). With a clear, systematic approach, organizations can drive better vendor responses, improve plan performance, and increase employee satisfaction—not just on cost, but on participant support, compliance, and scalable plan design.

At Basic Capital, we help employers simplify this process, empowering teams to make confident, compliant, and cost-effective choices.

Setting Objectives, Scope, and Timeline for Your 401(k) RFP

The first step in any successful 401(k) provider selection process is to clearly define your objectives, the scope of the services needed, and the timeline for the project. The DOL highlights the importance of regularly monitoring service providers, setting clear objectives, and conducting periodic reviews to meet fiduciary responsibilities (dol.gov).

Clarity at the outset means every step that follows is defensible and tailored to your organization’s needs.

Assign roles across HR, Finance, executive leadership, and legal to form a cross-functional RFP committee that brings all key perspectives to the table, whether that’s lowering administrative burden, improving participant engagement, or updating plan design.

For a deeper dive on creating a strong evaluation process, review our evaluation framework for 401(k) providers.

Building Your Requirements Library: What to Ask and Why

It’s a question nearly every HR and Finance team faces: What should be included in a 401(k) RFP template? Getting this right means capturing all the details vendors need to provide apples-to-apples proposals.

A well-structured RFP should include company background, current plan details, required services (recordkeeping, compliance, participant education, technology, and user experience), and a detailed fee breakdown. A transparent fee structure is essential for comparing costs across vendors (worldadvisors.com).

What really matters is making your requirements specific and participant-focused—this leads to more qualified responses and better plan outcomes.

For more on evaluating costs, see our guide on detailed fee breakdown.

Crafting the Vendor Questionnaire: Must-Ask Questions for Real Comparisons

Strong RFPs are built on thoughtful questions that allow you to compare vendors objectively. Start with foundational items: experience with similar plans, approach to participant education, compliance history, and technology capabilities.

Ask about experience with digital tools and financial wellness programs to reflect growing trends in participant engagement.

Here’s how to make your questionnaire stand out:

• Ask about fee transparency: Liz Weber of KPMG recommends asking candidates to specify which services are covered for estimated fees and which aren’t (cfo.com).

• Probe on compliance and fiduciary support: Confirm vendors can meet all 401(k) compliance requirements and provide clear documentation.

• Evaluate participant support services: Assess how vendors educate and engage employees.

By focusing on these areas, you help drive a fair, rigorous selection process.

For more on transparent pricing models, check out transparent pricing models.

Using a Scoring Matrix to Evaluate Proposals Objectively

Visual structure makes it easy to see exactly how proposals stack up—especially when you use a scoring matrix to assess key criteria like service, fees, and technology.

• Criteria Weighting Example:

  Criteria	Weight (%)
  Technology and Investment Choice	25%
  Fee Competitiveness	25%
  Participant Education & Support	20%
  Service Quality	15%
  Compliance Support	15%

Weighting can and should be adjusted to reflect your unique priorities and culture.

The ICLS audit RFP demonstrates how a structured evaluation criteria can clarify vendor strengths and lead to a better provider match (inlandlegal.org).

To understand how to balance participant and employer fees within your evaluation, see balancing participant and employer fees.

Real-World Lessons: What Makes an RFP Get Genuine Vendor Engagement?

A well-structured RFP doesn’t just improve compliance; it leads to stronger vendor engagement and measurable plan improvements. For example, Vantico Inc. consolidated its retirement plans after a thorough RFP process, enabling employees to access web-based financial tools (cfo.com).

Many organizations now prioritize financial wellness initiatives and participant education when evaluating vendors.

VEEAM Software’s optimization initiative identified $3 million in potential savings for a $14 million plan, showing that a detailed, competitive RFP can surface major cost efficiencies (rixtrema.com).

Ultimately, the key takeaway is that detail pays off: clear requirements and evaluation criteria drive better, more meaningful responses.

For more on provider flexibility and support, see provider flexibility and support.

Compliance, Fiduciary Duties, and Avoiding Common Pitfalls

Too many organizations focus only on cost or speed and neglect the critical compliance and fiduciary risks involved in 401(k) provider selection. Non-compliance can result in significant penalties under ERISA and DOL regulations, including the DOL’s 2024 final rule redefining who is an investment advice fiduciary (dol.gov).

Key takeaway: Always prioritize fiduciary duties—prudent selection, ongoing monitoring, and clear documentation help protect your organization and your plan participants.

Watch for poor communication or negative references during the RFP, these are strong red flags for future service.

Staying ahead on fee disclosure requirements is also essential.

See our fee disclosure requirements resource for actionable tips.

Download Your 401(k) RFP Guide

Our sample 401(k) RFP template includes:

• Introduction: Company overview and RFP purpose.

• Plan Overview: Current plan structure and participant demographics.

• Scope of Services: Required services such as recordkeeping, compliance, and education.

• Questionnaire: Detailed questions on experience, services, fees, and technology.

• Fee Structure: Request for full fee breakdown.

• Evaluation Criteria: How proposals will be judged and timelines for selection.

After the RFP: Demos, References, and Decision Memo

After you’ve evaluated written proposals, move to the next phase: schedule demos with finalists, request references, and prepare a decision memo. According to industry guidance, conducting finalist demos and reference checks is vital to validating provider claims and confirming fit (401ktv.com).

Request and check references for real-world feedback, including responsiveness and problem resolution from current clients.

Here’s a simple process:

1. Shortlist finalists using your scoring matrix.

2. Schedule demos with each vendor to see their systems in action.

3. Request and check references for real-world feedback.

4. Document your decision in a memo for internal alignment.

For more on provider comparison criteria, see provider comparison criteria.

Next Steps and Employer Resources

Building a strong, defensible RFP is an investment in your plan’s future.

Remember: Regular benchmarking and issuing an RFP every few years are essential for maintaining fiduciary standards.

For more tools and guidance, visit our 401(k) resources hub or Get started (for employers) to talk to our team.

References

Department of Labor. (n.d.). Meeting Your Fiduciary Responsibilities. https://www.dol.gov/node/66869

World Advisors. (2024). 10 Best Practices For Conducting a 401(k) Provider RFP. https://worldadvisors.com/blog/employer/10-best-practices-for-conducting-a-401k-provider-rfp

CFO.com. (2001). Eye on 401(k). https://www.cfo.com/news/eye-on-401k/683517/

Rixtrema. (2018). 7 Exclusive Case Studies on 401(k) Retirement Plans for Financial Advisors. https://rixtrema.com/blog/7-exclusive-case-studies-on-401k-retirement-plans-for-financial-advisors/

U.S. Department of Labor. (2024). Retirement Security Final Rule – Definition of an Investment Advice Fiduciary (Fact Sheet). https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/retirement-security-rule-and-amendments-to-class-pte-for-investment-advice-fiduciaries

Inland Counties Legal Services. (2023). Request for Proposal for 401(k) Savings Plan Audit Services. https://www.inlandlegal.org/icls-in-action/request-for-proposal-for-401k-savings-plan-audit-services/