Ascensus to purchase Vanguard’s small business retirement plans

Ascensus, a prominent player in tax-advantaged investment and savings solutions, has made a significant move by agreeing to acquire Vanguard’s specific small business retirement plan operations. This strategic acquisition includes Vanguard’s Individual 401(k), Multiple Participant SEP (Multi-SEP), and SIMPLE IRA Plans, marking a pivotal moment in the retirement planning industry.

The deal, set to close in the third quarter of 2024, will see Ascensus taking over the record-keeping and client servicing responsibilities for these retirement plans. This transition will bolster Ascensus’ managed retirement plans to nearly 280,000, solidifying its position as the largest administrator of retirement plans in the United States. Importantly, plan participants will retain access to a diverse array of Vanguard mutual funds through the Ascensus platform.

While Vanguard will continue to offer other individual retirement solutions, such as a one-person SEP IRA, the decision to divest certain small business retirement plans reflects a strategic realignment towards providers with specialized administrative expertise. Armond Mosley, head of Vanguard’s Self-Directed business, emphasized the importance of specialized administration for small business plans, highlighting the need for deep specialization in serving Multi-SEP, SIMPLE IRA, and Individual 401(k) savers.

Ascensus President Nick Good expressed excitement about the acquisition, emphasizing the benefits it will bring to small business employers. He noted that the acquisition will combine Vanguard’s investment capabilities with Ascensus’ operational excellence, providing clients with a comprehensive and efficient retirement planning experience.

This transaction underscores the evolving landscape of retirement planning and the importance of specialized expertise in serving small business owners and their employees. As Ascensus and Vanguard continue their partnership in administering 529 education savings plans, the industry can expect further innovation and collaboration in the realm of financial planning and investment solutions.