Tech-First 401(k) Platforms Reviewed — And Why They Might Be Failing Your Business

I’m Not Anti-Tech. I’m Pro-Outcome.

I’ll admit it: I’m old school. I like things that work. I like people who show up. And I’ve seen what happens when companies trust automation to run something as serious as their retirement plan.

I’m not anti-tech—I use it every day. But tech that replaces thinking? Or sidesteps accountability? That’s where things go sideways. And I’ve seen the crash sites firsthand.

These tech-first 401(k) platforms—Guideline, Vestwell, Human Interest, ForUsAll—promise clean dashboards and a hands-off setup. And for some companies, it works. Until it doesn’t.

Why These Platforms Took Over

• Business owners love simplicity

• Venture capital loves subscription revenue

• Payroll companies love bundling

• CalSavers handed them tens of thousands of clients on a silver platter

For a small business just trying to check the “retirement plan” box? These platforms look perfect.

Until you actually need something.

What They Promise

• One-stop shop

• No advisor

• No TPA

• Payroll integration

• “Set it and forget it”

• Low fees

• High tech

• Minimal effort

What Actually Happens

• Compliance? On you.
• Plan design? Cookie cutter.
• Investments? All index, all the time.
• Failed testing? Still on you.
• Support? Delays, scripts, or shrugs.
• Reporting?  Surprisingly clunky for something supposedly tech-forward.
• Accountability? Not their department.
• Fees? Low-ish… until they aren’t.

Remember when Netflix was $9.99? Or when Ubers were cheaper than parking? That was before they had to turn a profit for their investors.  In fact Guideline almost doubled their base fee recently from .08% to .15%.  What will that look like in 5 or 10 years?

One of my clients loved Guideline—until they wanted to add a defined benefit plan. Guideline couldn’t support it. So we moved the plan to a more traditional setup with a TPA, and guess what? The Gusto payroll? Fully integrated with the provider that Gusto used to scoff at.

Speaking of which—remember when Guideline wouldn’t accept existing plans? Now they’re waiving fees to get you to transfer one in. Why the sudden shift? I’ll let you do the math.

What Gusto and Rippling Won’t Say Out Loud

Gusto and Rippling aren’t just payroll companies anymore. They want to own your whole back office: HR, onboarding, time tracking—and your 401(k).

They push their “preferred” providers not because they’re the best—but because they’re part of a bigger play. It’s all about integration strategy and recurring revenue. You’d have to dig to confirm shared ownership, but let’s be honest: odds are, it’s there. Call it what it is.

You’re not getting advice. You’re being funneled.

Now these payroll “disruptors” are quietly integrating with the same legacy providers they used to mock. Why? Because they’ve realized their current model doesn’t work for everyone—and isn’t built to last. Those legacy firms? They’re also the ones most likely to buy them out and deliver the multiplier their early investors are banking on.

Where These Platforms Fall Short

• Multi-entity ownership

• Controlled groups

• Creative plan design

• HCE-heavy testing or family attribution

• Plan redesigns

• Adding defined benefit or cash balance plans

Who These Platforms Might Work For

They might work if:

• You have <10 employees

• You’re not growing

• You have no HCEs

• You’re cool with DIY support

They don’t work well if:

• You’re scaling or hiring high earners

• You want a plan that adapts with you

• You’ve failed testing (or don’t even know what that means)

• You want someone who picks up the phone when things break

If you want the unfiltered version, this Reddit thread lays out the good, the bad, and the ‘why did no one warn me?’ about Guideline.

Reddit Small Business Thread about Guideline

Who’s Really Benefiting?

Platforms like Vestwell are backed by giant firms like John Hancock (aka Manulife in Canada). That doesn’t make them evil—it just means you’re part of a business model. You’re the product, not the customer.

These systems were built to scale, not to serve. They’re not inherently bad—but they’re not the be-all, end-all disruptors and saviors they want you to think they are.

Want a Second Opinion?

If you’re already on one of these platforms and wondering if it’s working, let’s take a look. If you’re about to sign up, I’ll tell you what to expect.  If it’s a good fit for you, I’ll tell you that as well.  I even have the ability to work with some of these platforms myself.  If you want an advisor or TPA who knows how these systems actually operate, I’m one of the few who will partner with you and still speak human.

No pitch. No pressure. Just information you can use to make an informed decision.