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FAQ

What is 401GO?

401GO is a custom-built 401(k) platform. We are focused on automation and technology to make it easier and much more affordable for companies to sponsor a 401(k) plan. We help with the annual administration, which includes all required notifications to both employees participating and employers sponsoring the 401(k) plan, as well as authorizing distributions and loans, and the required tax filing (Form 5500). We also have a separate investment fiduciary that reviews and monitors investments within the 401(k) plan. We are full-service and we make it easy!

How much does a 401GO plan cost?

We want a 401(k) plan to be available to all businesses regardless of size, and so we have priced our plans to be very affordable. Our starter plan costs just $9/particpant/month with no base fee, no AUM fee, and no setup fee. Larger plans include a $29/month base fee, with a small AUM fee, but offer discounts for plans with 50+ participants. We charge no setup, document, administration, filing or termination fees.

For example, if you have 10 employees and 6 of those employees have a balance and/or are contributing, the employer would pay $54 a month for the 401(k) plan and $648 a year. 

*Keep in mind with the new SECURE Act law you can claim a 50% tax credit for three years on those costs related to your 401(k) Plan. That would put the annual costs with the above example to $324.

How long does it take to set up a plan?

We’ve timed it, and some have signed up in as little as 6 minutes! While we don’t want everyone to fly through setup this quickly, most find that if they have their information prepared in advance, they can complete the process in around 15-20 minutes. 

Our system will remember you, so if need to pause and come back later, you can.

For comparison, a new 401(k) plan from a traditional provider takes about 4-6 weeks to set up. 

How is a 401GO 401(k) different from others?

A 401(k) through a traditional service provider is full of manual processes that take time, and more importantly, cost you money. 401GO uses automation and technology to make all those manual processes a thing of the past. 

And, because so many parts of 401(k) administration are better (and more accurately) done by technology, many features that are expensive add-ons elsewhere are included with your 401GO plan.

And, because we are a bundled solution, you won’t need to juggle multiple professionals or wonder who to turn to with questions. 401GO handles it all.

Do you offer payroll integration?

A 401(k) plan requires payroll submissions every pay period. We’ve made this incredibly easy to do. In fact, if you have less than 10 employees this shouldn’t take more than a few minutes; however, we do provide integration with many common payroll providers, and with our True360™ service, we integrate with all providers.

What are the plan design options?

We have put together a number of ideal plan design options for a small business 401(k) plan. We understand the IRS requirements. We guide you through the setup process carefully, and then offer a plan design suggestion that best meets your company’s needs. Of course, you can choose whether or not to accept the suggestion, but most are happy with our approach.

We offer all the safe harbor plan designs (basic, enhanced, QACA (auto-enrollment), and non-elective), as well as traditional plans and solo-k plans. 

How do I know my plan assets are safe?

401GO does the record-keeping and administration for your 401(k) account, but is not the custodian. We partner with Broadridge Matrix Trust Company, and they hold the plan assets, which are then invested into the market. 401GO directs these trades through its platform.

401(k) accounts are some of the most secure accounts you can have. Matrix uses bank-level security to ensure the safety of assets. Additionally, plan sponsors are usually required to purchase a fidelity bond, which is an insurance policy that protects the funds in the case of fraud, theft, embezzlement or misappropriation.

How do participants select investments?

401GO has created a unique guided portfolio builder. Rather than force participants into a pre-determined box, our strategy builder asks a few questions to determine investing goals and retirement needs, and uses this information to suggest a customized port

401GO utilizes a 100% online RIA called GO-Invest to help with the investment selections in the 401(k) plan. This makes the process easy and helpful for those employees participating as they would only need to answer a number of questions to help set up their investment allocations. This is done through a risk profiling tool and Robo-Adviser to make sure that investments in your portfolio meet your tolerance level for risk.

You don’t have to accept what the Robo-Adviser provides you, but it is certainly helpful to understand what type of investments match up with your age, time of retirement, and tolerance level for risk.

What’s the difference between a 401(k) and an IRA?

Many details differentiate a 401(k) from an IRA. The main difference is that only an employer can sponsor a 401(k) while an IRA is available without sponsorship.

Another difference is the contribution limits. An IRA only allows for $6000/yr in contributions while a 401(k) allows for $20,000/yr or more, depending on age. Employers are allowed to contribute matching funds AND profit-sharing funds in a 401(k), while these are not allowed in an IRA. And, 401(k) plans offer substantial tax benefits to employers, while IRAs do not.

Who files the form 5500?

The 5500 form is an annual requirement for every 401(k) plan. It reports general contribution information and helps ensure plan compliance.

401GO will prepare the form, as well as sign and file it. We ask plan sponsors to review it before we file. 

Do you perform nondiscrimination testing?

Annual tests are required by the IRS to ensure employees are not being unfairly excluded or from the 401(k) plan. Traditional providers test the plan annually as required, and if the plan fails, adjustments need to be made. These adjustments can sometimes be costly and cause hassles.

Thanks to our automation, 401GO provides ongoing compliance testing. This notifies you in advance if problems exist, so you have time to rectify them while they are small. We also perform the required annual test, and notify you when it’s complete, so you don’t have to wonder.

Do you manage distributions and loans?

Part of what makes 401GO so great is the administration that is provided. We will review and authorize any distribution or loan requests that come through from participants in your 401(k) plan. It’s easy for participants to request through our platform, and if you have a payroll integration in place, you won’t need to worry about any of the administration tasks. 401GO handles it all.

Do I need a fidelity bond?

The IRS requires businesses to have insurance to protect 401(k) participants against fraud or misappropriation by those who have access to funds. Most business insurance plans will cover up to $100,000, so when plan assets are higher than this, it’s important to purchase a fidelity bond.

A fidelity (or ERISA) bond is an insurance policy which covers 10% of plan assets. If you purchase a GO-Plus or GO-Premier plan from 401GO, your fidelity bond will be included, so you won’t need to worry about it.

How can I start a 401(k) plan with 401GO?

We thought you would never ask! If you’re ready to GO and don’t have any other questions, then click on Get Started to take you to our easy-to-use setup. If you have other questions and want to discuss this, please schedule a time with us here.

How can I partner with 401GO?

You can go to our Become a Partner section to set up a partnership today. Or, to learn more, schedule a quick discovery call here.

Our Auhors are :

Aidan Yeaw

Daniel Beck

Rob