Fintech — or financial technology — has made great strides in automating functions for businesses, saving them time, money and frustration, as well as reducing the number of — and potential for — errors with respect to financial transactions. 401GO was created to act as a fintech solution that helps solve the problem millions of American workers have as a result of being left on the outside looking in when it comes to investing in a 401(k) retirement plan. We work with financial advisors, accountants and other third-party administrators to achieve this goal.
Why Partner with 401GO?
As an accountant, you like having small businesses as clients, and you want to do your best by them. Outside of filing their tax returns, you may handle a variety of other tasks for them as well, including creating profit-and-loss statements and balance sheets, conducting audits and preparing and filing reports. But one other important task you can undertake to serve your small-business clients is to hook them up with 401GO. 401GO is one of the leading technological solutions helping small-business owners who want to offer their employees a 401(k) retirement plan.
As it stands, millions of Americans — many who work for small businesses — are unable to take advantage of a 401(k) plan because one simply isn’t offered at their place of employment. And while some small-business owners legitimately can’t afford to offer this benefit, for the vast majority, the stumbling block is the investment of time and money it takes to get the company 401(k) plan up and running.
That’s the pain point that 401GO has solved with our proprietary fintech solution. We make 401(k) setup for small businesses easy, and owners can do it infinitely faster and cheaper than they could with a big bank or other 401(k) provider. Plus, we never charge a setup fee.
As a 401(k) provider, we work directly with small-business owners to get them started with a 401(k) retirement plan, and we also work with financial advisors who help them to manage the plans. As helpful as financial advisors are with respect to small-business 401(k) plans, the truth is that some companies are too new or too small to have a financial advisor they can turn to for advice and assistance. These owners may rely on their accountant or bookkeeper to provide the advice they need for finding a 401(k) company to partner with. Below, we go over some distinct advantages our fintech solutions can provide small-business owners looking for a 401(k) provider.
An Alternative to Auto IRAs
The so-called “auto IRAs” — government mandates that require qualifying employers to enroll their employees in a city or state-administered retirement program or provide one themselves — are a game-changer for small-business owners operating in those municipalities. Many small-business owners are facing deadlines to comply with these mandates, and may be worried and even scared about their role and how to fulfill it.
As an accountant, you can explain to your clients that 401GO’s fintech solutions offer a superior alternative to state-run IRA plans. With 401GO, small-business owners have more options and choices of available 401(k) retirement plans for them and their employees. Additionally, our 401(k) company uses our proprietary technology to get your clients’ retirement plan set up in minutes, versus weeks with a traditional 401(k) provider. Learning this will be a huge relief to small-business owners who were dreading the approaching deadline, fearing they would never have time to get their retirement plan off the ground.
Help with Tax Burden
Small-business owners (and even big-business owners) count on their accountants to know the best ways to legally reduce their tax burden. Sometimes spending money helps a company save money, and starting a small-business 401(k) plan can be one way to do that.
A small-business 401(k) can be a vehicle for profit sharing, which is 100% tax deductible for the business, including contributions to employee accounts as well as the costs of starting up, operating and maintaining the small-business 401(k) plan. It can be a cheaper and smarter way to undertake profit sharing, and it means the employees pay less in taxes as well. The beauty of profit sharing is that owners can change the amount from year to year based on how well the company has done — they aren’t locked into a specific contribution.
Additional tax benefits can be realized through the establishment of a 401(k) retirement plan, including for the rank-and-file employees, highly compensated employees, the employers and the business itself.
The Bottom Line
Depending on who you ask and what type of job it is, hiring and training a new employee can cost anywhere from $1,000 to $20,000, so it is in an employer’s best interest to put effort into retaining top talent. One way to do that is to offer coveted benefits like a good 401(k) retirement plan. And the best 401(k) company for small businesses is 401GO. When your clients are looking for the best and easiest way to start a 401(k) for small businesses, tell them to contact 401GO. Our fintech solutions put us at the front of the pack.