As part of its continued commitment to empowering American small businesses, ShareBuilder 401k, a provider that specializes in all-ETF, online-managed 401(k) plans, will waive set-up costs for all new plans beginning Monday, May 12 (the first day of National Small Business Week) and ending May 23, 2014.
By signing up online, businesses with employees can save $495 to $995 in set-up fees while helping their employees get on the path to long-term savings for retirement. Business owners without full-time employees can save $150 on a Solo 401(k).
“More than half of U.S. employees work for a small business1, but only 24 percent of small businesses offer 401(k) plans2, often citing set-up costs as a major barrier,” said Stuart Robertson, president of ShareBuilder 401k. “Our goal is to make it possible for all small businesses to obtain low-cost, simplified 401(k) plans for themselves and their employees.”
Businesses with less than 100 employees can receive tax incentives to establish a retirement plan and are eligible for up to $500 in tax credits to offset the setup and any ongoing administrative costs. Additionally, while offering employee matching and profit sharing programs are not required in order to offer a 401(k) plan, contributions are tax deductible and another effective way to minimize a business’ tax burden.
To be eligible for free setup of a ShareBuilder 401k plan, business owners or plan fiduciaries must purchase an Individual, Simplified, Customized or Tiered Profit Sharing 401k plan at the company’s website by May 23, 2014 and enter the promotion code maysale to receive the discount. From start to finish, the online sign-up typically takes less than five minutes to complete. Only one offer applies per customer.
Since 2005, ShareBuilder 401k has made all of its pricing readily available on its website, and the company began advocating for an industry benchmark of less than one percent for “all-in” employee-paid fees in 2007. ShareBuilder 401k is not a fund provider and takes an unbiased approach in the evaluation and selection of funds with a focus on low-expense, index based investments from the leading ETF providers such as Vanguard, iShares, SPDR and PowerShares to create a diversified line-up from which participants can choose, including five model portfolios. ShareBuilder 401k also serves as the investment manager role (ERISA 3(38) fiduciary) for employers, which helps maximize employer protections and saves employers the time of regularly reviewing investment options that are made available to employees.
1 Data according to www.SBA.gov
2 Data from 2013 ShareBuilder 401k national survey of 500 small businesses with 50 or fewer employees: http://www.sharebuilder401k.com/news/pressrelease.aspx?newsID=183
About ShareBuilder 401k by Capital One
ShareBuilder 401k, a subsidiary of Capital One Financial Corporation, provides all-ETF and online managed 401(k) retirement plans for small and mid-size businesses serving clients ranging from self-employed to those with more than 10,000 employees. ShareBuilder 401k is a provider of 100 percent index-based ETF investments (plus a money market) in 401(k) plans. ShareBuilder 401k offers a suite of on-demand services that to help employers and employees open and manage their retirement plans online at www.sharebuilder401k.com.
ShareBuilder 401k plans provide diversified investments and model portfolios that help employees select investments and get on track to meet retirement goals. Customers can also take advantage of ShareBuilder 401k consultants, customer success managers, and customer care agents to receive assistance in choosing and managing their retirement benefits.
Advisory services are provided by ShareBuilder Advisors, LLC, an SEC registered investment advisor. ShareBuilder Advisors, LLC, is a subsidiary of Capital One Financial Corporation.
401(k) plans are: Not FDIC insured – Not Bank guaranteed – May lose value
You should carefully consider information contained in prospectus, including investment objectives, risk, charges and expenses. For a prospectus containing this and other important information, please visit the fund quote detail page at sharebuilder401k.com, or contact a ShareBuilder 401k representative at 1-800-943-6108 option 1. Please read the prospectus carefully before investing.
- 401k plan
Alison Cahill, 917-653-7592