FAQs about 401(k)

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.

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 $20,500/yr (in 2022), 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.

The unusual name of this type of retirement plan comes from the section of the tax code that established it. Specifically, section 401, subsection k.

The Revenue Act of 1978 inserted some new codes to deal with the tax requirements for profit-sharing programs. Section 401(k) was a provision that permitted employees to avoid taxes on some of their income, as long as they chose to receive the money at a later time. Instead of direct pay, it would be considered deferred compensation, and as such, would not be taxable.

An MEP is a Multiple Employer Plan. This is a 401(k) plan that has two or more unrelated employers within it. MEPs are usually sponsored by PEOs (Professional Employer Organizations), business associations, or chambers of commerce.

Employers often choose to join an MEP because pricing is reduced using economies of scale, as well as a few other useful benefits.

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.

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 and adhere to multiple industry standards to ensure the safety of assets. 401GO also maintains exceedingly high standards for data protection, including 3rd party penetration tests, extensive background checks of employees, secure password enforcement and more.

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.

Go to app.401go.com to log in. We recommend setting up two-factor authentication, which can be done using text, phone, or the google authenticator app.

While we don’t (yet!) have iOS or android apps available, it is possible to add a browser page to your phone, as if it is an app.

SAMSUNG: Navigate to your account login page, tap the three dots at the top right of your screen, then choose “add to home screen.”
iPHONE: See the Apple user guide here.

Once logged in, participants can manage beneficiaries, change investments and deferral amounts, change their email address, or request a loan or distribution.

Yes! While many 401(k) plans use auto-enrollment to encourage participation, it is never required for anyone to contribute.

You will need to set up your account and log in to choose to opt out.

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.

Yes! We provide integration with some common payroll providers, and with our True360™ service (available on our GoPlus and GoPremier plans), we integrate with almost all providers.

For those on our GoStarter plan, and using a provider with which we do not offer an integration, we’ve made the manual work as simple as possible. If you have less than 10 employees, it only take a few minutes each pay period.

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.

The 5500 form is an annual tax 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. Many providers will prepare the form but will not take responsibility to sign and file it.

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.

Every 401(k) plan is fully integrated with the Matrix Trust Company, part of the Broadridge family of services, to provide custodial services.

Matrix has deep roots in the financial services industry, and is trusted by financial professionals to safeguard plan assets.

Of course! While we offer 3(38) services for those who want it, advisors who prefer to act as the 3(38) can do it.

Our partner portal includes a builder that allows you to create a fund lineup to use on your clients’ plans. You’re able to adjust or change it at any time.

While some platforms compete with advisors, we recognize that they improve outcomes, so we actively seek to include them on as many plans as possible. We prefer our clients to have an advisor-led retirement experience.

We offer advisors a robust partner portal that allows them to monitor their plans, pull reports, and even create fund lineups if they choose to. Ask us for a demo to get a full picture of all the features available.

We have a flexible platform that works for almost all plan design options. Our automated setup process will suggest a plan design that best meets your client’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, and non-elective), as well as traditional plans and solo-k plans.

We don’t believe that MEP and PEP plans are the best group retirement options, so we don’t offer them.

However, we do offer an alternative called Syndicate that allows companies to group their plans to take advantage of economies of scale without many of the hassles and headaches associated with other types of pooled plans.

We thought you’d never ask! If you’re ready to GO and don’t have any other questions, then click on the “get started” button in the menu. This will walk you through our guided setup process.

If you have other questions, or want to discuss your options before beginning setup, schedule a time to chat with us.

We have a flexible platform that works for almost all plan design options. 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, and non-elective), as well as traditional plans and solo-k plans.

For those interested in MEP/PEP plans, we offer an alternative called Syndicate that allows companies to group their plans to take advantage of economies of scale.

Many 401(k) providers charge per eligible employee. 401GO charges only for those employees who actively participate in the plan. Our base price is $9/participant and we offer discounts for those with 50+ participating employees.

True360™ is how we are able to integrate with almost every payroll provider that exists. We are actively working to create full API integrations with as many payroll companies as we can, but it’s difficult and time-consuming work, and we don’t want you to have to wait! With True360, you’ll give our concierge team access to your payroll, and we’ll manage the 401(k) contributions manually, and we take responsibility for any errors that might happen.

If you choose the GO-Starter plan, if you aren’t comfortable giving us access, or if your payroll provider won’t allow it, we’ve made the manual process as easy as possible for you. It should take only a few minutes each pay period to complete.

Our platform is designed for small businesses, so we have reduced much of the complication associated with traditional 401(k) providers. There are two important keys that allow us to give you a very affordable plan.

The first is service bundling. We serve as the Third-Party Administrator (TPA), the recordkeeper, and the custodian (through our partner Matrix Trust). We also provide 3(38) investment fiduciary services, which allows us to offer you an excellent and affordable fund lineup. These services typically require 2-3 different professionals to manage with legacy providers, each with their own fees.

The second is automation. We built our platform from scratch, using automation technology to handle many of the tasks others do manually. Automating processes means many tasks are done in the background, efficiently, error-free and on time. Since we don’t have to pay salaries to get these tasks completed, we can save you a substantial amount of money.

Don’t worry, we never automate relationships! Call us for personal support from a human.

Yes, of course! Solo-k plans are easy to set up and manage, and are a great option for solopreneurs. They come with financial wellness tools, and a spouse account is included. Pricing is just $200 for the first year, and $150/year after that, with a 0.3% AUM fee.

We offer different pricing options to best fit the needs of your organization.

GO-STARTER: This is our least expensive option, and a really good choice for extremely small companies. To use this option, you will need to create a Safe Harbor plan. These are typically the best choice for micro-sized businesses, and the automated setup process will suggest the best one for you.

GO-PLUS: If your business is growing, if you want a traditional (non-Safe-Harbor) plan, or if you are transferring your existing plan from another provider, this pricing option is a great choice. It comes with extras, like an ERISA bond, a dedicated relationship manager, and access to our True360™ integration.

GO-PREMIER: This option is for advisor-led plans. Since advisors take some of the responsibility, they will add their fee on top of ours. While this pricing option may end up costing a little more, many businesses find it worth the price, since advisors are very helpful during the setup and ongoing management of the plan, and they tend to improve outcomes for everyone involved.

If you’re not sure which option is best for you, just ask. We’re happy to talk through the details with you.