A 401(k) plan recordkeeper does just that—keeps a record of the plan, including eligible participants, contribution amounts, frequency, withdrawals, loans, and other administrative items. Often an outsourced third-party independent of the company offering the plan, the recordkeeper sends quarterly and annual account balance statements to participants and—importantly—is often the custodian of the 401(k) plan’s assets.
The recordkeeper is a primary source of information, usually through a proprietary website, for plan participants to receive updates about account balances, trades, investment performance, and other items.