DRESHER,
Pa., April 16, 2024 /PRNewswire/
-- Ascensus announced today a definitive agreement to acquire
Vanguard's Individual 401(k), Multiple Participant SEP (Multi-SEP),
and SIMPLE IRA Plans business.
Under the transaction, Ascensus will assume recordkeeping and
client servicing for Vanguard's current line-up of SIMPLE,
Multi-SEP, and Individual 401(k) retirement plans, and increase its
overall retirement plans under administration to nearly 280,000
plans.
Ascensus will provide custodial and trustee services,
recordkeeping, client servicing, transaction processing, tax
reporting, and other services, and plan participants will retain
access to a diverse lineup of Vanguard mutual funds via the
Ascensus platform. Vanguard will continue to offer a one-person SEP
IRA for small business owners who do not employ others. This
agreement does not include Vanguard's other retirement
solutions.
SIMPLE, SEP, and Individual 401(k) retirement plans are best
suited for the needs of small businesses. An Individual 401(k) plan
is ideal for owner-only businesses looking for many of the same
advantages of larger 401(k) plans. Multi-SEP and SIMPLE IRA Plans
offer participants a simplified retirement savings solution with
minimal administrative burden for the plan sponsor.
With more than four decades of industry experience, Ascensus is
deeply committed to serving the unique needs of small business
retirement plans. Already the largest administrator of retirement
plans in the U.S., Ascensus extends its leadership position and
offer to this key market segment with this acquisition.
The transaction is expected to close in the third quarter of
2024 and the acquired business will operate as part of the Ascensus
Retirement line of business.
"This acquisition offers small business employers continued
access to Vanguard's investment strength and the technology,
expertise, and operational excellence that clients have come to
expect from Ascensus," said Ascensus President Nick Good. "Plan sponsors and participants also
will benefit from Ascensus' commitment to providing flexible and
intuitive digital experiences and sophisticated underlying
technology, including a modern account management platform
optimized for plan administration."
"The breadth and nuance of small business plan administration
increasingly requires deep specialization, and we believe business
owners and their employees will be best served by an organization
with significant expertise and scale in serving Multi-SEP, SIMPLE
IRA, and Individual 401(k) savers," said Armond Mosley, Principal, head of Vanguard's
Self-Directed business. "We know that clients in these plans will
benefit from Ascensus' longstanding commitment to helping these
small business clients meet their retirement objectives."
Separately, Ascensus provides recordkeeping and other
administrative services for Vanguard's 529 education savings
business serving individual investors.
About Ascensus
Ascensus is a market-leading enabler of tax-advantaged
savings—providing technology, services, and expertise that help
millions of people save for a better future.
The company is a premier savings program service provider,
third-party administrator, and government savings facilitator. Its
platforms, industry knowledge, and data-based insights enhance the
growth and success of its partners, their clients, and savers
through co-branded, private-labeled, and governmental
partnerships.
Ascensus offers comprehensive qualified and nonqualified
retirement plan solutions, third-party retirement plan
administration, 529 education and ABLE savings program
administration, corporate- and bank-owned life insurance solutions,
and fiduciary and total rewards services.
The company's brands include Ascensus; Newport, an Ascensus company; and FuturePlan
by Ascensus. Ascensus has more than $760
billion in assets under administration and employs more than
5,400 associates as of December 31,
2023.
For more information,
visit ascensus.com and newportgroup.com.
About Vanguard
Founded in 1975, Vanguard is one of the world's leading
investment management companies. The firm offers investments,
advice, and retirement services to tens of millions of individual
investors around the globe—directly, through workplace plans, and
through financial intermediaries. Vanguard operates under a unique,
investor-owned structure where Vanguard fund shareholders own the
funds, which in turn own Vanguard. As such, Vanguard adheres to a
simple purpose: To take a stand for all investors, to treat them
fairly, and to give them the best chance for investment success.
For more information, visit vanguard.com.
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SOURCE Ascensus