Fidelity Investments of Boston is marketing a full-service 401(k) program for nonprofit companies.
Fidelity Investments Tax-Exempt Services Co. is offering MaximumK to tax-exempt organizations that have up to 1,000 employees and up to $10 million to invest, a spokeswoman said.
Until a change in legislation in 1996, tax-exempt corporations could only offer 403(b) plans, a type of individual retirement account program designed for nonprofit companies. Now some nonprofits can offer 401(k) plans, formerly the reserve of taxable companies.
Fidelity has signed up 10 companies as part of a pilot program begun this year, but it will expand the program by marketing it through a dedicated sales force.
The investment giant offers a range of retirement programs to smaller companies, including e401(k) over the Internet and the Simple IRA, a retirement program for companies with fewer than 100 employees. Fidelity manages assets totaling $806.1 billion.