6 Small Business 401k Providers With the Best Tech Platforms
6 Small Business 401k Providers With the Best Tech Platforms
Big or small, businesses need to be offering a solid set of benefits if they want to be competitive in the recruitment game. While the 401(k) has become a standard offering of benefits packages across most companies, not all are created equal.
In 2020, outdated 401(k) platforms no longer make the grade. Unless you and your employees are prepared to devote hours to managing their retirement accounts, you need to be gravitating towards 401(k) providers with a tech-forward mindset. Here are some of the best:
1. Guideline
Guideline’s system for small business 401(k) management sets itself in two main categories: ease of use and affordability. Their platform fully automates plan administration, compliance testing, recordkeeping, and investment management, requiring as little upkeep on your part as possible.
Equally important is Guideline’s affordable price for small businesses — a 401(k) plan starts at $ 39 base fee + $ 8 per employee per month, with no setup fee. And Guideline doesn’t charge added investment fees on your retirement portfolio, unlike most other providers, which typically ranges from 0.5-1.5% of assets of under management annually.
2. Ubiquity
For small business owners looking to emphasize ease-of-use and flexibility in their retirement plans, Ubiquity deserves a close inspection. Ubiquity’s platform is easily accessed and set up online, making it ideal for companies looking to get their plans started quickly. Like Guideline, Ubiquity also offers a number of different options for customizing your 401(k).
Another standout aspect of Ubiquity’s platform is its pricing: all of the plans on offer are priced at a flat fee that won’t increase with usage or over time. Small companies poised to undergo big growth soon should take particular notice of this, as other platforms are liable to charge by volume usership.
3. Betterment for Business
Many of the things that make Betterment for Business’s platform great are present in several of the options on this list — usability, flexibility — but with a particularly employee-friendly spin to it all.
Once you set up the basics of what your business’s 401(k) plan is going to look like, Better for Business’s platform helps guide each of your employees through their own personalized journey to retirement. The platform makes custom recommendations on how much each worker should save and what accounts they should focus on — ensuring that all savings goals are met along the way.
4. ForUsAll
ForUsAll is a bit different than the other options on this list, namely in the fact that you can adopt their platform without giving up your current 401(k) plan. ForUsAll isn’t a 401(k) provider in the strictest sense; they’re a tech platform that can make managing your existing retirement plan significantly easier.
By handing over the reins to ForUsAll, you avoid the headache of switching account providers while still getting access to the best in financial technology at your fingertips. ForUsAll will even negotiate lower fees on your behalf, meaning that earning back your investment with its platform is almost a guarantee.
5. Employee Fiduciary
They might have an old school name, but Employee Fiduciary is absolutely at the cutting edge where it comes to 401(k) account management. Though their tech platform can compete with any of the others on this list, where Employee Fiduciary truly sets itself apart is in its management expertise.
Employee Fiduciary charges its fees based on the number of employees your business is enrolling because they give an immense amount of personal attention to each employee’s account. If you’re looking for a platform that focuses on the needs of your workers above all else, Employee Fiduciary might just be the one for you.
6. Principal
Principal is one of the most well-established 401(k) providers out there, making them a likely choice for some of the bigger small businesses. Don’t be deceived, though: the usability of the platform can easily go toe-to-toe with any of the other small business-focused options on this list.
Principal’s platform is simple and easy to use, though the true benefits come in the form of savoir faire — at a time when government regulations are constantly changing and a new stimulus is up in the air, you need experts on your side when it comes to managing your workers’ money. Principal can help fill any knowledge gaps you may have in this area, making all account upkeep a breeze.
Just because 401(k)s are a decades-old investment strategy doesn’t mean you have to be using outdated technology to manage them. Adopting one of these tech platforms can ease the burden of dealing with retirement accounts while ensuring prosperity for your employees in the process.
Just because 401(k)s are a decades-old investment strategy doesn’t mean you have to be using outdated technology to manage them. Adopting one of these tech platforms can ease the burden of dealing with retirement accounts while ensuring prosperity for your employees in the process.
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