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Fidelity Develops New 401(k) Plan

Fidelity Investments has developed a new 401(k) plan for small non-profit organizations. The new product, MaximumK, was created by Fidelity Investments Tax-Exempt Services Co. MaximumK is designed for companies with less than 1,000 employees and up to $10 million in assets. There are about 15,000 organizations in the U.S. that fit this profile, according to Fidelity. These groups include physician practices, research organizations, small church groups and labor unions, Fidelity said. Fidelity says it plans to keep costs low by eliminating customization usually provided to larger plans. Sponsors are given a choice of up to 25 Fidelity funds. MaximumK was offered to a limited group of organizations earlier in the year. It began selling the product generally May 5. A dedicated sales force is selling the plan.