What is the primary characteristic of a bundled approach in 401(k) plans?

The primary characteristic of a bundled approach in 401(k) plans is that all services are provided by one company or a collaboration of companies. This means that the same provider offers a comprehensive suite of services, which can include plan administration, recordkeeping, investment management, and employee communication. The advantage of this approach is streamlined communication and coordination, which can simplify the process for employers and employees alike. When one entity is responsible for multiple aspects of plan management, it can enhance efficiency and create a more integrated experience for participants.

This model contrasts with other approaches where multiple service providers are involved in managing different services, which can lead to complications in communication and potentially increased administrative burdens. In addition, the bundled approach does not typically involve outsourcing all administrative services to third parties, as it's focused on a singular entity or partnership providing the majority of the services. It also differs from employers managing the plan entirely in-house, as the bundled approach relies on external expertise.