Finding the Wealthiest 401(k) Participants With a Self-Directed Account
In Form 5500 data for plan year 2024, we started with every plan filing as a small plan, on Form 5500-SF or the full form with Schedule I. We kept those with at least $25M in assets and an average balance of at least $250,000, then filtered for those that report a brokerage window.
That leaves 803 plans, about 57,000 participants, and $34 billion. The average participant holds roughly $600,000. Of the 803, 752 are 401(k) plans.
How the list narrows
| Filter | Plans | With a brokerage window | Share |
|---|---|---|---|
| All small-plan filers | 807,028 | 71,785 | 8.9% |
| $25M+ in assets | 2,372 | 836 | 35.2% |
| $25M+ and $250K+ average balance | 2,150 | 803 | 37.3% |
Who they are
Most of these are physician groups, law firms and investment managers.
| Industry | Plans at $25M+ / $250K+ | With a window | Assets in those plans |
|---|---|---|---|
| Offices of physicians and dentists | 480 | 303 | $13.0B |
| Legal services | 450 | 231 | $9.1B |
| Securities and other financial investments | 241 | 83 | $4.8B |
| Offices of other health practitioners | 28 | 18 | $0.8B |
Those four groups account for 635 of the 803 plans and about 80% of the assets. Physician practices stand out: 63% of the qualifying plans have a window, compared with 37% for the group as a whole.
The participants are also the partners. They are the sponsor, the fiduciary, and the client, with no committee in between.
Windows get more common as plans get bigger
| Plan assets | Plans with a brokerage window |
|---|---|
| Under $1M | 7.6% |
| $1M to $5M | 9.9% |
| $5M to $25M | 14.6% |
| $25M and up | 35.2% |
Where the plans sit
| Inferred recordkeeper | Plans | Assets |
|---|---|---|
| Fidelity | 148 | $6.1B |
| Ascensus | 66 | $2.7B |
| Schwab | 39 | $1.8B |
| ABA Retirement Funds | 19 | $0.6B |
| OneAmerica | 16 | $0.7B |
| Not attributed | 144 | $7.4B |
Recordkeepers are inferred, not reported on the filing, and 144 plans could not be attributed.
Three typical plans
| Physician group | Law firm | Investment manager | |
|---|---|---|---|
| Plan assets | $30–40M | $30–40M | $30–40M |
| Participants | 60–70 | 65–75 | 50–60 |
| Average balance | $450–500K | $500–550K | $600–650K |
| Asset growth per year, 3 years | About 3–4% | About 2–3% | About 5–6% |
| Employer contribution per active participant | About $16K | About $11K | About $31K |
| Recordkeeper | Large national | Mid-size national | Large national |
| Region | West | Midwest | Mid-Atlantic |
What this does and doesn't show
If you already manage a surgeon’s or a partner’s taxable assets, their plan balance may be reachable through that window. If you run interval or liquid alternative funds, the same door applies. A reported window doesn't tell us how much money sits in it, and which funds are available depends on the window's provider.
Every sponsor, plan, inferred recordkeeper and reason to call is in Axiomatic Plan Intelligence. Ask for more information at info@axiomaticdata.com. DCALTA - Defined Contribution Alternatives Association is coming up November 10.
Originally posted on LinkedIn.