In short years since our inception, 401GO has gained notoriety for our unique and powerful solution for 401(k) plans for small businesses. In addition to being found in the 2021 NAPA Black Book and the Benzinga 2021 FinTech Awards, this startup has been featured in many news articles and podcasts throughout the year.
Here are five significant places you can find 401GO:
U.S. News & World Report
Our CEO Dan Beck was featured as an expert in this article about safe harbor 401(k) plans. Safe harbor plans are unknown or confusing for some business owners and advisors, but they are becoming increasingly popular, for good reason. They can save businesses substantial amounts of time and sometimes money by helping them avoid nondiscrimination testing.
This IRS testing is done to make sure the 401(k) plan is benefitting everyone, and not unfairly slanted toward the high-wage earners.
With safe harbor plans, highly compensated owners won’t need to worry about having their contributions capped. The tradeoff is that employers must contribute to all employee accounts, and those contributions are immediately vested. Several types of safe harbor plans exist, each with different matching structures. A knowledgeable retirement advisor can help you choose the structure that will work best for your situation.
Employees tend to love safe harbor plans, for the tax deductions, employer matching, and immediate vesting. In this difficult labor market, an attractive 401(k) is a must-have benefit. Employers may have higher payroll costs, but they will be balanced with lower administration costs and great tax benefits.
Accounting firms and payroll providers have traditionally served as plan administrators, but online solutions like 401GO are gaining popularity. 401GO specializes in working with small and micro-sized businesses because we believe everyone should have access to a 401(k) plan.
In this article in Forbes, Dan Beck and other experts explain why a 401(k) PEP (Pooled Employer Plan) is a great new option for some employers. Since these have only been approved for use since January 2021, many advisors aren’t aware of the advantages they offer.
PEPs, as the name suggests, represent a single umbrella plan under which many employers can house their company’s 401(k) plan. Pooled structures are common in other countries, and are expected to become more common in the U.S. They promise to be easier, cheaper, and better for businesses since they can achieve economies of scale much faster than stand-alone 401(k) plans.
They also provide advantages for employees. The larger scale often provides better plan returns with a wider variety of investment options and low-cost share classes that are typically not available to smaller plans. The greater options paired with lower costs can be a big advantage for participants, especially those who save aggressively. And for many employees, the switch from their traditional 401(k) to a PEP is seamless and easy.
Since PEP plans are so new, participants are advised to select their plan and provider carefully. Plan sponsors should have a good understanding of their responsibilities and the consequences of the decisions that need to be made. A good Pooled Plan Provider will set up their plans for success.
PEPs are just one of many exciting newer 401(k) options that give workers the tools to retire comfortably.
KSL News Radio
In our recent interview on the Money Matters podcast, Dan Beck helps employees understand how to get the most from their company 401(k) plan by avoiding some common mistakes.
The first and biggest mistake employees make is not contributing to their 401(k). Employers, especially small employers, are making it easier to participate in a 401(k) these days. Some even offer auto-enrollment, meaning you will automatically be given a retirement plan that you can choose to use or opt-out of.
Some older employees need to work hard to catch up if they are behind in their retirement planning. If this is the case, a 401(k) will be a good option, because it offers higher contribution limits than an IRA.
Listen to the full podcast to hear the other common 401(k) mistakes and how to rectify them.
An employee in a small startup recommended 401GO to her employer, to help their team save money for retirement. Choosing the right provider is an important step to creating an environment that is attractive to the talent companies need. It can be the cornerstone of a healthy benefits package. This article in BenefitsPRO describes what sponsors should be looking for when launching a new 401(k) plan.
Understand your reasons for wanting a 401(k). For most businesses, these include tax benefits, a desire to help employees with retirement, or recruiting talent to your team.
Decide whether to accept the responsibility of being a plan fiduciary, or whether to involve an advisor who can alleviate some of the burden. More than 90% of sponsors choose to work with an advisor, and most find value in the relationship.
Design the right plan for your needs. Most advisors will recommend auto-enrollment and auto-escalation features to help maintain a healthy plan. You may even receive an extra tax benefit for utilizing these features.
Find a 401(k) provider that offers a digital platform, to keep the activity simple and fast. The 401GO platform is popular because of its quick setup and integration with many payroll providers. It’s recommended that sponsors look for a provider that can worry about plan rules and participant enrollment, as well as managing all the administrative tasks.
401GO and our founder Dan Beck were featured in this online industry magazine, explaining why we do what we do.
401(k) plans have always been a challenge to small business owners. Some add a plan blindly, without realizing the full implications of what they are taking on. But the majority–more than 80%–don’t offer one at all. This is often because the cost and complexity of 401(k)’s can be substantial, and good solutions for small companies didn’t exist.
The 401GO technology was born from this need. Setup and onboarding takes as little as 15 minutes, it manages the administration and reporting and does it all at a very low cost. It is available for companies as small as one employee.