Did you know that over 85% of small businesses don't offer a 401(k) plan? This is mostly due to the fact that they are too costly to set up and manage, are time consuming and are one of the more daunting benefits for a company to offer.
Recently, 401GO announced its new automated setup process that features an intuitive, human advisor-like walkthrough to help guide business owners through setting up a 401(k) in under 10 minutes.
Traditionally, setting up a 401(k) plan takes an average of about eight weeks and is full of many friction points including emails, forms, agreements, contracts, negotiations, training and more. Business owners must navigate a 401(k) setup on their own or they rely on an advisor to guide them through the process which is costly and time consuming.
401GO is the first company to offer a fully automated 401(k) plan. The company aims to help people save for retirement with affordable and accessible plans. Founded by Jared Porter, Nate Beck and Daniel Beck, the trio are all entrepreneurs and business owners that have managed multiple small businesses. They saw a market need and fulfilled it by creating 401GO.
They understood that most employers know very little about 401(k) plans and want a quick, easy to use and affordable solution. They approached creating 401GO with a new outlook by removing nonsensical industry jargon and implemented automatic features to alleviate pain points of setting up a traditional plan. Now, 401GO saves employers and employees money, time and hassle, giving them the opportunity to save for retirement.
'I'm incredibly excited by the ever increasing opportunities for entrepreneurs to pursue their visions and have a lasting impact on society. I feel technology has been paramount in increasing opportunity, reducing barriers to entry and creating entirely new markets that previously didn't exist. I have spent my career exploring this expansion of opportunity and believe there is still much to be done,' said Daniel.
401GO's new platform was designed with a similar flow and interaction that a human advisor would offer when consulting a business owner in setting up a 401(k). Rather than provide forms and information to read through, 401GO provides simple to answer questions, one at a time to understand the employers goals, intentions and business functions. Then 401GO's system guides the user through the various choices of a 401(k) plan while recommending certain ones and explaining others that may be difficult to understand. This helps owners determine if a non safe-harbor or safe-harbor 401(k) plan is best and then the various plan design options that will optimize the business goals.
'Costs and complexity were always the biggest detractors for small business owners wanting to set up a 401(k) plan,' said Daniel. 'We've already fixed the cost concern with our simple and affordable pricing and now, with our improved automation and intuitive guided setup, complexity is gone too. There is no longer any reason every business can't have a 401(k) plan.'
Additionally, 401GO has improved how its partners that use the platform serve their clients by allowing the plan setup to be more collaborative in a way that both an employer and their business advisor can complete plan setup with incredible ease.
To learn more about how your business can easily add a 401(k) plan today, please visit: https://401go.com/.