Step 1: Define your ideal 401(k) prospect
Before you search, write down what kind of plan you can credibly serve. Three questions:
- →What asset size? Solo advisor → $5M–$100M plans. Small team → $50M–$500M. Wirehouse / large RIA → $200M+.
- →What industries are you credible in? Manufacturing, professional services, healthcare, etc. Plans in industries you don't know cost you 2–3x the win rate.
- →What geography? In-person service models cap at 1–2 hours of drive time; remote-first models can go national.
Step 2: Search Form 5500 for matching plans
Use a Form 5500 search tool to filter by your ICP. The biggest lever is fee grade — Grade D plans (>1.5% expense ratio) close at 2–3x the rate of Grade A plans because there's a clear quantified savings argument.
Secondary filters: NAICS sector, state, asset range, participant count. Save the search so you re-run it monthly when DOL refreshes the dataset.
Step 3: Score each plan for pitch leverage
For each shortlisted plan, score it on three factors:
- →Fee leverage — what would the sponsor save by switching? Compute (their fee ratio − your fee ratio) × plan assets. >$25k/year savings is pitch-ready.
- →Recordkeeper vulnerability — is the current recordkeeper getting a no-shop renewal, or are they likely on review? Schedule C provider relationships + fees tell you who the incumbent is.
- →Buying-committee accessibility — can you reach the CFO/HR head with a verified email and phone? If not, deprioritize.
Step 4: Map the buying committee
A 401(k) takeover almost always involves multiple stakeholders. Map them before you outreach:
- →Economic buyer — usually CFO. Cares about plan cost, fiduciary liability, audit risk.
- →Functional buyer — usually HR director. Cares about participant experience, education, eligibility tracking.
- →Technical evaluator — sometimes a benefits consultant or outside CPA. Cares about plan design, compliance, audit cleanliness.
- →Champion — anyone who's already frustrated with the current plan. Find them by asking "what's working / not working with your current plan" on the first call.
Step 5: Send the opening pitch
Cold-email opener template, used by top advisors:
"Hi [name], I noticed your [Company] 401(k) plan is paying [X]% in admin expenses, which is roughly [Y]x the median for plans your size in [industry]. The plan is paying [provider] $[Z] in direct compensation. I work with [N] companies in your industry on plan reviews — would a 15-minute call to share a benchmark report make sense?"
Three things make this work: specificity (their actual fee ratio), peer comparison (industry-specific), and a low-stakes ask (15 minutes for a benchmark report, not a sales pitch).
Step 6: Run the discovery + benchmarking call
On the call, share a 1-page benchmark report showing the plan's fee ratio vs. peer median, current Schedule C provider list, and a back-of-envelope estimate of switching savings. Ask:
- →When was your last formal plan review?
- →Who's your current advisor / consultant on this plan?
- →What's working well? What would you change if you could?
- →What's your renewal cycle with your current recordkeeper?
Step 7: Stay in pipeline for 6–18 months
Most 401(k) takeovers don't close on the first call. The sponsor typically:
— Talks to their incumbent ("are we really overpaying?") — Talks to 1–2 other advisors for comparison — Waits for plan-year boundary or renewal cycle — Runs a formal RFP process
Stay in pipeline with a quarterly value-add touch (industry update, regulatory change, peer fee benchmark refresh). Most wins come on the 4th–8th touch, 6–18 months after the initial pitch.