For 2025, there’s some great news: contribution limits are increasing once again. Here’s what you need to know about the new limits, how they can help you save more, and what this means for businesses sponsoring 401(k) plans. 

The New 2025 Contribution Limits 

For 2025, the IRS has increased the annual 401(k) contribution limit to $23,500, an increase of $500 from 2024. This applies to employees who participate in traditional 401(k), 403(b), most 457 plans, or the federal government’s Thrift Savings Plan. 

Workers aged 50 and older are still allowed to make additional “catch-up” contributions. This catch-up limit remains at $7,500 for most plans in 2025, allowing those nearing retirement to contribute up to $31,000 annually for most 401(k), 403(b), governmental 457 plans and the federal government’s Thrift Savings Plan. A new feature in 2025, SECURE Act 2.0 added additional catch-up contributions for employees aged 60-63, in the amount of $11,250.

Beyond employee deferrals, the combined limit for all contributions (employer match + employee contribution) is now set at $70,000, an increase from $66,000 in 2024. For employees aged 50 and over, this combined limit goes up even further to $77,500 if you include catch-up contributions. 

How to Maximize Your Savings 

If your employer offers a match, make sure you’re contributing enough to take full advantage of it. For example, if your company matches 50% up to 6% of your salary and you’re earning $100K, setting aside 6% ($6,000) means you’ll receive an additional $3,000 in matching contributions. That’s $3,000 added to your account each year. Employees who don’t contribute to their full match are leaving money on the table. 

While it would be ideal, we know that contributing the maximum amount immediately isn’t feasible for everyone. If you can’t max out your 401(k), try increasing your contributions incrementally. For example, increase your contribution rate by 1% of your salary each year or after every raise.

If you’re 50 or older, use the catch-up contribution option to supercharge your retirement savings. The additional $7,500 can make a substantial difference, particularly if you got a late start on saving. 

Remember to automate your contributions so you can save consistently without thinking. This is an easy way to ensure you’re steadily working toward your retirement goals. 

How These Changes Impact Businesses 

For businesses sponsoring 401(k) plans, the new limits bring both opportunities and challenges. 

First, if your business offers a matching program, higher employee contributions could increase costs. However, offering a competitive 401(k) match is a powerful tool for attracting and retaining top talent, especially in today’s tight labor market. For smaller businesses, even modest matching programs can make a big difference in employee satisfaction and loyalty. 

Businesses need to pay close attention to the IRS rules for highly compensated employees (HCEs), which include individuals earning more than $160,000 in 2024 or owning more than 5% of the company. Ensuring your 401(k) plan remains compliant and nondiscriminatory is crucial. Consider adopting a Safe Harbor 401(k) plan, such as those offered by 401GO, which simplify compliance and eliminate certain nondiscrimination testing in exchange for agreed-upon matching or contribution requirements. 

For small to mid-size businesses, budgeting for increased contributions is essential. Changes like employee raises, new hires, or higher participation rates could lead to higher matching costs. However, these higher matching costs could result in more tax deductions for your company. Proactively planning for these potential expenses will help your business stay financially prepared while maintaining a valuable benefit for your team.

Build a Stronger Future for Your Workforce 

The increase in 401(k) contribution limits for 2025 is an opportunity for employees to save more and for businesses to demonstrate their commitment to employee well-being. 

Offering a robust retirement plan helps businesses compete for top talent, boost morale, and foster long-term loyalty. If you’re looking for an easy and cost-effective way to implement or upgrade your 401(k) program, 401GO is here to help. 

With 401GO, you can easily set up a compliant, affordable 401(k) plan tailored to your business needs. Our technology streamlines plan management so that you can focus on growing your business while supporting your employees in building a secure retirement. Get started with 401GO today! 

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What is the Student Loan Match Feature?

The student loan match feature in 401(k) plans permits employers to make matching contributions to an employee’s retirement account based on the employee’s qualified student loan payments. It addresses a significant gap, in which many employees find it difficult to both make student loan payments and contribute to their retirement savings. Without the 401(k) contributions, they may miss out on valuable employer matching funds, as well as the time in the market that is so important to wealth building.

By allowing loan payments to count as retirement contributions, this program attempts to encourage retirement planning even when facing debt.

How the Student Loan Match Provision Works

The student loan matching provision is structured to simplify the process for both employers and employees. Here’s how it unfolds.

1. Employees make payments to their qualified student loans monthly. 
2. These student loan payments are then recognized as contributions for the purpose of employer matching. Essentially, the loan payment takes the place of the traditional deferral. 
3. Employers then make matching contributions to the employees’ 401(k) account based on the amount of the student loan payment.

Using this provision, the debt can be repaid and the retirement savings can grow simultaneously.

Benefits of the Student Loan Match Program

Since employees can continue to build their retirement savings while focusing on paying off student debt, this feature enhances the desire—and ability—to save for those who previously believed they couldn’t. Workers appreciate an employer who gives them this flexibility, which may be just as meaningful as a raise for helping employees feel appreciated and respected.

Offering a student loan match program can be a powerful way for employers to attract and retain talent. It demonstrates a commitment to employees’ financial well-being, appealing particularly to young individuals who might be navigating student debt.

Implementation Timeline and Best Practices

The student loan match feature officially took effect for plan years beginning after December 31, 2023. While it is legally available for all plans, it takes time for recordkeepers to build the functionality to support it, so many providers don’t offer it. 401GO does.

Employers who wish to take advantage of this provision should talk to their plan provider to get it added to their plan document. Then, they will need to establish a verification process to ensure that student loan payments are accurately recorded. They should also communicate the specifics of the program, including eligibility and matching opportunities, to their employees.

Conclusion

The integration of a student loan match feature in 401(k) plans is a huge benefit for those balancing educational debt and retirement savings. At 401GO, we are committed to helping businesses implement strategies that support their employees’ financial health. Employees looking to take advantage of this new feature should talk to their employer to discover whether it’s available, and encourage them to adopt it if not.

By adopting a student loan match provision, employers can not only improve their employees’ financial futures but also create a more engaged and committed workforce in the process. To get started, talk to us about adding this valuable upgrade to your plan.

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Let’s break down the differences between these two retirement plan options.

What is 401GO’s GO-Starter Plan?

401GO’s GO-Starter is an innovative and simplified 401(k) plan designed for small businesses, startups, and self-employed individuals. Unlike traditional 401(k) plans, which can often be cumbersome to set up and manage, GO-Starter offers an easy-to-use platform with minimal administrative complexity. The goal of 401GO’s platform is to provide a user-friendly retirement savings option without the need for a dedicated HR or finance team.

One of the standout features of the GO-Starter plan is its low cost. It eliminates many of the fees that are typically associated with traditional retirement plans, making it a cost-effective solution for smaller businesses that may not have the resources to offer complex benefit packages. Additionally, GO-Starter includes features such as automatic payroll integration, employee enrollment, and an intuitive dashboard for employers to manage their accounts.

This plan also offers flexibility in terms of contribution levels, allowing both employees and employers to contribute to the retirement fund. GO-Starter helps employees to begin saving for retirement without the need for complicated paperwork or investment knowledge.

What are State-Offered Retirement Plans?

State-offered retirement plans are a growing initiative aimed at helping workers who do not have access to an employer-sponsored retirement plan. These plans are available in states that have implemented mandatory or voluntary programs to address the increasing number of individuals who are not saving for retirement. Some well-known examples include California’s CalSavers, OregonSaves, and Illinois Secure Choice.

State-offered plans are primarily designed to help individuals who work for businesses that do not offer retirement benefits. In these states, employers are required to either offer the state retirement plan or offer a different type of retirement option from a private provider. Using the state-run programs, employees can contribute through payroll deductions, and the state typically manages the investment options. Unlike 401(k) plans, state-offered retirement plans are often set up as Roth IRAs, which means they may have different tax benefits and withdrawal rules.

One key advantage of state-offered plans is that they are highly accessible to workers who otherwise wouldn’t have access to retirement savings. For employers, offering these plans comes with fewer administrative burdens compared to setting up a private retirement plan like a 401(k). However, the investment options within state-offered plans may be more limited, and employees don’t have the same level of control over their savings as they would with a 401(k) plan.

Key Differences Between GO-Starter and State-Offered Plans

1. Eligibility & Access: GO-Starter is designed for small businesses who want to offer a 401(k)-type plan to their employees. It is designed to be generally accessible to almost all employees who live in the U.S. In contrast, state-offered programs are available only in specific states and only for employees who reside in that state.
   
2. Plan Type: The GO-Starter plan is a 401(k) plan, which provides both employees and employers with the opportunity to contribute to a retirement fund. On the other hand, state-offered plans are often structured as IRAs, typically Roth IRAs, meaning they are owned by each individual employee and not the employer.
   
3. Control & Customization: With 401GO’s GO-Starter, employers have more flexibility in terms of plan structure and investment options. Employees also have a wider range of choices for their contributions. State-offered programs are not plans, and therefore have few, if any, customization options.
   
4. Administrative Effort: Both options aim to simplify the process of retirement savings, but the 401GO plan is particularly designed to minimize administrative costs and workload for businesses with automation technology. State-offered programs require some work on the part of employers, to maintain a current employee census and educate new hires about the program.
   
5. Investment Options: 401GO offers a broader selection of investment options for employees compared to most state-offered retirement plans, which typically have limited choices managed by the state.
   

Conclusion

Both 401GO’s GO-Starter plan and state-offered retirement plans serve a vital role in helping individuals save for retirement, but they cater to different needs and situations. GO-Starter is a more flexible, customizable solution for small businesses and self-employed individuals who want to offer employees a traditional 401(k) retirement plan. State-offered retirement plans, meanwhile, are a simpler, more accessible option for workers in states where businesses are required to participate. Choosing the right option will depend on your specific needs—whether you’re a small business owner, an employee, or an individual looking to secure your financial future.

The post GO-Starter vs. State-Offered Retirement Programs: What’s the Difference? appeared first on Fast and Affordable 401k for growing businesses.

Did you know there are over 150+ acronyms in the retirement industry? This is where an advisor is at his best!

How Advisors Are Helping Individuals

The average American’s net worth is held entirely in their home equity and their retirement account. A financial advisor can support people with so many other priorities, like caring for an ailing family member, dealing with a personal disability or tragedy, managing a job loss, recovering from a natural disaster, or traveling to support family in distant locations. The advisor is the lifeline, the quarterback/chef/conductor, the peace-of-mind maker, the retirement translator, who acts in the best interest of the client, answers the “when in doubt” questions that pop up, and so much more. 

Depending on the service model, a financial advisor may be able to assist with chat, phone, email and onsite meetings to make sure you maximize the value of the retirement plan benefits you offer your team. And, using experienced financial planning, advisors can take a holistic approach to client assets, helping both business owners and employees set proper goals and personalize their retirement experience.

4 Big Value-Adds

Including a financial advisor on your 401GO retirement account can benefit you in several ways.

Navigate Uncertainty: An advisor can help you avoid hitting the panic button during uncertain times. Too many workers buy high and sell low, or take early withdrawals or loans that come with penalties and fees. A good advisor will present other options.

Monetary Life Coach: An advisor can act as a financial life coach, helping you through the ups and downs and curve balls that life throws at you and your business.

Better Outcomes: Advisors, on average, provide better outcomes, higher satisfaction, more engagement, higher deferral rates, and, as a result, happier employees. 

Holistic Approach: An advisor can help you bridge the gaps between your wealth, health, and retirement needs in a personalized way, and they can do the same for your employees.

401GO Supports Advisors

401GO is the partner that makes retirement easier for all three parties. We help the advisor to do their work in a frictionless and fluid way, with contact details, investment fund access and review, participant notices and billing flexibility. We help the employer to set up their plan in just 15 minutes and to manage ongoing needs in an efficient and hands-off way. We give the participant an easy-to-navigate user experience with free financial wellness tools and no transaction fees.

There are over 300,000+ advisors in the U.S. Make sure you’re working with one that partners with 401GO.

The post The Value of Including a Financial Advisor within a Retirement Plan appeared first on Fast and Affordable 401k for growing businesses.

Choosing the right Third-Party Administrator (TPA) to handle this filing on your behalf is worth every penny. A good TPA will ensure the form is completed according to requirements, to help you avoid penalty costs and additional work with the IRS, and they will ensure that administrative tasks are done according to the requirements of the plan.

What is Form 5500?

All companies that offer a 401(k) plan are required to file this form with the IRS each year. It serves as both a disclosure document for plan participants and as a compliance tool for the Department of Labor and the Internal Revenue Service. The form requires detailed financial and operational information about the 401(k) plan, including plan assets, participant counts, and adherence to applicable laws and regulations.

How a TPA Supports You

A TPA plays a vital role in managing the administrative aspects of compliant 401(k) plans. When it comes to form 5500, a knowledgeable TPA will ensure that the filing is done accurately and prior to the deadlines, which are strict. This will prevent unnecessary fines and regulatory inspections. Compliance regulations by ERISA and the IRS change frequently and oftentimes unknowingly by business owners, so having a TPA that is knowledgeable and current on these changes will ensure the filing is compliant. 

The main elements of form 5500 is the data that is required to represent the plan year and participation within the 401(k) plan. The collection of the data and financial reporting requires gathering and organizing of this information. TPAs are equipped to manage this so it does not have to be a burden on the business owner. If an audit does arise, having a TPA that can aggregate all plan data in an efficient and accurate manner will assist the company to navigate the process with minimal disruption.  

DIY Form Filing

When you choose to file the form yourself, or have a CPA help you, rather than utilizing a TPA, the lack of expertise could put you at risk of serious consequences. Compliance requirements are very stringent, and late or inaccurate filings could result in steep fines and penalties. Penalties can add up very quickly and can cost companies thousands of dollars. There’s also a possibility of audits and legal complications, which are hassles no business needs. 

Even without errors, the complexities of form 5500 take time and resources to complete accurately and can result in significant time away from your business.

Work with the Best

To make sure you choose the right TPA for your company’s needs, ask these questions: 

• Do you prepare and file form 5500 for your clients? 
• Do you sign the form or is that the responsibility of the business owner? 

Having a clear understanding of your role up front will help ensure all tasks are completed.  Nobody wants to play a finger pointing game with their CPA or recordkeeper about who was supposed to file it and did not. TPAs are the experts in this area. They have technology at their disposal to collect and report the data in a streamlined fashion. The TPA will provide support based and necessary guidance so the plan remains in compliance on all fronts. Hiring a TPA that handles all of the aspects of administration for your plan will reduce the risk of compliance issues arising. 

Making the decision to leverage a strong TPA like 401GO to file the company’s form 5500 is not just a matter of convenience—it’s a critical step toward ensuring compliance, reducing risks, and maintaining an appropriately managed 401(k) plan. By working with a trusted TPA, businesses can stay focused on what they do best while the TPA focuses on 401(k) administration and compliance.

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Let’s define the terms and explain why they are relevant, so we can set your plan up for success.

Term 1: 180 or 360

These numbers refer to the information that would be flowing between your payroll provider and your retirement plan provider. Think of a circle when you hear these terms. Just like 180° is halfway around a circle, a 180 integration does half of the communication.

A 401(k) provider needs census information (i.e., name, birth date, hire date, contact information) in order to track eligibility for your employees. It also needs payroll information (wages, hours worked, retirement plan deductions) to determine if deductions were withheld and the amount. If automatic communication flows only from the payroll provider to the retirement plan provider, it is referred to as a 180 integration.

A 360 401(k) payroll integration encompasses the same items listed in the 180 integration, with the addition of information shared from retirement back to payroll. Your retirement provider will track all those who enrolled into the retirement plan and what percentage or dollar amount they selected.  This information would be sent back to your payroll provider so they can update their system to include (or remove) retirement deductions at payroll.  Retirement plan loans might also be included in this information but it would require some additional coordination.

Term 2: SFTP or API

SFTP and API are the technical mechanisms for sharing information between your recordkeeper and your payroll provider. The type of technology used can affect how much time your team will spend managing retirement issues each payroll period.

SFTP stands for Secure File Transfer Protocol.  In simple terms, this is a secure (encrypted) file that is sent over the internet.  Your payroll provider will most likely send a spreadsheet every time the census is updated or payroll is run. If a 360 integration is in place, then the recordkeeper is most likely sending a spreadsheet to the payroll company with details of employee deductions (and possibly loan repayment information) for your payroll provider to update on the upcoming payroll. 

Importantly, this file transfer usually must be initiated by a human. Sometimes it can be automated by setting information to download and send at specific set times.

API Stands for Application Programming Interface and it allows for software systems to communicate directly with each other.  It essentially sends the same information that SFTP files would send, but it does so automatically through the software with no need for spreadsheets. An API integration lets data flow in real time between the two providers, eliminating the human error and lag time that are created when information is only exchanged at scheduled intervals.

You may come across the term “operationally supported integration.” This is a manual integration, meaning that an individual will be logging into your payroll system and manually pulling census and payroll data and updating deductions on your behalf.  Although it is often referred to as an integration, it is not an actual integration but rather a service. It can be a useful service when a technical integration is not available, but it’s smart to understand the difference. 

How to Make Integration Decisions

Given the options listed above, not all providers can accommodate each scenario. When talking through integration options with your payroll or retirement plan provider note that it may not be required that you use their integrated solution.

Most recordkeepers will let you manually update employee census and payroll details directly into their websites.  This option might be beneficial for those who have a full time staff member(s) that takes on these tasks themselves or prefers to maintain a close watch. This individual(s) is solely responsible for updating their payroll to reflect enrolled participants, changed deductions, and setting up loan repayment amounts.  They are also responsible for any changes on the census like termination or employee classification, identifying ownership and highly paid individuals or officers.

However, these administrative tasks can become overwhelming to those who might not be familiar with these types of responsibilities or if they already have a full plate of duties already.  Furthermore, it might be uncomfortable for employees to have access to other employees’ financial details.  If employees are sensitive to who might know that they are, for example, requesting a loan or stopping deferrals due to financial reasons, having an automated integration is a good solution. Moreover, if you have a highly paid individual or owner, they may want to be more discrete in maximizing their retirement benefits as well.  

Automating tasks helps to lighten the load of additional administration work while helping to reduce or eliminate human error that could be costly when talking about corrective actions to a list of possible plan failures.

No two retirement plans are the same and neither are their integrations.  What is good for one plan administrator may hold little to no value to another.  It is up to you to decide what option would work best for your unique circumstances. Happy retirement saving!

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What is ACA?

The Automatic Contribution Arrangement (ACA) is a policy or system implemented under SECURE Act 2.0 to ensure employees are automatically enrolled in retirement savings plans offered by their employers. Under ACA, a predetermined percentage of an employee’s salary is deducted and contributed to their retirement account unless the employee explicitly opts out or chooses a different contribution level.

Making enrollment the default option has a proven track record of increasing participation and helping workers build a financial cushion for their later years.

Who is Affected by ACA?

SECURE Act 2.0 was enacted on December 29, 2022, and this is the important date to keep in mind when determining if a plan is affected. All plans established on or after this date are impacted, unless:

• The company has been in operation less than three years
• The company has 10 or fewer employees (but once the 11th employee is hired, it will affect them)

If your plan was established before this date, you’re exempt.

ACA applies to all types 401(k) and ERISA 403(b) plans, including traditional, Safe Harbor and Starter-k plans. Non-ERISA plans are not affected.

What is Required?

New plans must enroll eligible employees automatically at a default contribution rate. While there is some flexibility in the default rate, it should fall between 3% and 10%, a decision that is made at the plan level and applied to all employees equally.

Additionally, contributions must automatically increase at the rate of 1% per year, until it reaches a predetermined rate, which must fall between 10% and 15%. If the auto-enroll default is 10%, then the auto-increase is not needed.

What is the ACA Deadline?

To comply with this new regulation, the ACA provision must be implemented on affected plans by January 1, 2025. Since this deadline has already passed, it’s important to act now to ensure your plan is compliant. New plans created in 2025 and beyond will have an ACA provision included automatically.

Remember, affected employees must be notified of the details 30 days prior to the effective date. Proactive planning is essential for a smooth transition.

401GO is Here To Help

Updating plans on 401GO is easy. If you’re an employer looking to understand how these changes might apply to your plan, reach out to us. We’ll be happy to talk through the regulations and how they can be valuable to your team.

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Here’s a breakdown of the most impactful changes coming in 2025:

1. Mandatory Automatic Enrollment for New Retirement Plans

Beginning in 2025, any 401(k) or 403(b) plans that were established after December 29, 2022 must include automatic enrollment for employees, unless they choose to opt out. The default contribution rate is typically 3%, with auto-increase of 1% per year up to 10-15%.

Automatic enrollment is proven to significantly boost participation rates, helping employees save for retirement. While it does place a requirement on employers to ensure good communication with employees, it was already a popular provision because of its impact on plan success.

2. Employer-Sponsored Emergency Savings Accounts

Employers will be allowed to offer emergency savings accounts linked to their retirement plans, providing employees with a flexible tool to handle short-term financial needs, reducing the need to borrow against retirement funds. This provision allows up to $2,500 to be contributed to these accounts, with a certain number of penalty-free withdrawals each year.

By offering emergency savings accounts, employers can address one of the biggest barriers to retirement savings: employees dipping into their retirement funds for emergencies. This feature can improve financial wellness and reduce financial stress among workers.

3. Expanded Catch-Up Contributions for Employees Aged 60–63

From 2025, employees aged 60–63 will be eligible to make higher catch-up contributions to their retirement plans, giving them an opportunity to accelerate savings as they near retirement. This new limit allows older participants to contribute up to 150% of the standard catch-up amount for maximum savings.

This provision is a valuable way to help older employees shore up their retirement savings. Employers should ensure their plans are updated to accommodate these increased contributions.

4. Student Loan Payment Matching Contributions

Employers will be able to treat employees’ student loan repayments as retirement plan contributions, making those repayments eligible for employer matching. This provision helps employees focus on reducing student debt while still building retirement savings.

This is a game-changer for attracting and retaining younger employees who are burdened by student debt. Employers that implement this feature demonstrate a commitment to addressing the financial challenges faced by their workforce, while supporting healthy financial habits.

5. Saver’s Match Replacing the Saver’s Credit

The Saver’s Credit, a tax credit for low- and moderate-income individuals, will be replaced by a Saver’s Match. The federal government will match 50% of an individual’s contributions to a retirement account, up to $1,000 annually. The match will be deposited directly into the retirement account rather than being issued as a tax credit.

This change provides low- and moderate-income employees with a tangible boost to their retirement savings. Advisors should consider how to communicate this benefit to eligible clients and ensure accounts are set up to receive these matches.

Looking Ahead

These 2025 SECURE Act 2.0 provisions are a significant step toward improving retirement readiness for workers across the country. Consider the potential benefits of adding some of these provisions to your existing retirement plan. By understanding these changes and preparing ahead of time, employers can build a solid strategy for providing maximum value to employees.

Need help navigating SECURE 2.0? Contact us today for expert guidance on updating your retirement plans for 2025 and beyond.

The post Navigating 2025 SECURE Act 2.0 Provisions appeared first on Fast and Affordable 401k for growing businesses.

1. Leverage Tax Benefits

A 401(k) isn’t just a retirement savings plan—it’s a savvy tax strategy. Contributions to a traditional 401(k) reduce your taxable income, while a Roth 401(k) offers tax-free withdrawals in retirement. Business owners can also take advantage of SECURE Act 2.0 tax credits for starting a new plan, making now the ideal time to act.

2. Engage and Retain Employees

In today’s competitive job market, offering a robust 401(k) can be a game-changer for attracting and keeping great talent. Studies show financially secure employees are more productive, experience higher job satisfaction, and have greater loyalty to their companies. Providing employer matching is an excellent way to show you value them while boosting participation. 

Bonus tip: Partner with a provider offering education and financial wellness tools to help employees understand retirement savings. Educated employees are more likely to fully utilize the plan.

3. Maximize Contributions

For 2025, the employee contribution limit is $23,500, with an additional $7,500 catch-up contribution for those 50 and older. As a business owner, you can contribute even more—up to $70,000 total. Explore strategies like profit-sharing and Safe Harbor plans to maximize contributions and take full advantage of these limits. If you’re already maxing out your profit-sharing plan, consider adding a Cash Balance plan to help you save even more.

4. Streamline your Plan Administration

Managing a 401(k) doesn’t have to be complicated. Work with a provider that makes administration simple through automation, offers transparent pricing, and ensures compliance with IRS regulations. This saves you time and helps avoid costly mistakes.

5. Plan for the Long Term

Your 401(k) is more than a retirement savings tool—it’s a way to build financial stability for yourself and your team. As you grow your business, your plan can evolve to support succession planning and ensure a secure future.

As we enter the New Year, take time to revisit your 401(k) Success strategies. Whether you’re refining your current plan or just getting started, these steps can help you make the most of this essential benefit. Here’s to a successful year—financially and beyond!

The post 401(k) Success Strategies for the New Year appeared first on Fast and Affordable 401k for growing businesses.

As time went on, things improved bit by bit. Most notably with the creation of document signing technology and other similar services that effectively put office facsimiles out of their misery. But the retirement plan setup process didn’t really improve much beyond that with continued long setup timelines, multiple back and forth communications between client, provider and advisor and an overall antiquated process ignoring the benefits of readily available technology for all of us to use…until now. 

Efficient 401(k) Setup

Let me introduce you to one of the many benefits 401GO clients and advisor partners experience when taking their first steps with us—the easiest and most efficient setup process in the retirement plan industry! What makes 401GO’s setup process so easy and efficient for our clients and partners?

Time

• Initial setup steps that historically took hours to complete are now completed in as little as 15-30 minutes. Small business owners are almost always short on time and 401GO’s 401(k)setup process gives them back the gift of hours!
• 401GO’s entire setup process from initial step to first payroll contribution are completed in one business week.
• 3 month setup timelines? 6-8 week delays? 45 – 60 day deadlines and cutoffs? Not at 401GO. I personally helped my advisor partners and their clients setup six new Safe Harbor plans on Sept. 30th this year with plan effective dates of Oct. 1st. All in a day’s work at 401GO!

Efficiency

• All of the new plan documents are generated during the initial setup step and ready for client review and e-signature.
• Speaking of e-signature, with 401GO, the client only has to complete one e-signature for their entire new plan setup. Yep, you read that right. Only one e-signature.
• Once the client completes the e-signature step, the plan is immediately assigned their new dedicated Client Support Manager (CSM) who will then connect with the client within 48 hours and assist with the remaining onboarding steps and remain attached to the new plan as their dedicated CSM moving forward.

Ease of Use

• 401GO’s setup process is so easy and intuitive to use that it is designed for the advisor to invite their clients to initiate and complete the process on their own. Or, the advisor can complete the setup on their clients behalf and have it ready for signing in minutes!
• Commonly, the approach our advisor partners take is to sit down together with their client and help them complete the initial setup process together.
• The entire setup process is done online without a shred of actual paper – sorry Dunder Mifflin! 

A New Approach to 401(k) setup

So let’s recap what you don’t get with 401GO. No more 87 pages of paperwork. No more multiple signatures required as if the client was buying a new home. No more hours of a clients and advisors time spent on retirement plan setups. No more getting in line 6, 8 or even 12 weeks in advance to meet the vendors deadline and time frame. No more clients passed around like a hot potato during their new client experience. 

401GO is truly an advisor-centric platform built by small business people for small business people and their employees. Check us out for yourself and let our team show you firsthand. We have an amazing team from development to operations, from support to marketing and from compliance (yep – we even really like our compliance peeps!) to sales, all more than ready to make 401GO your preferred retirement plan partner. 

The post Everything Is Easy with 401GO – Especially the 401(k) Setup Process appeared first on Fast and Affordable 401k for growing businesses.