JPMorgan Chase is out with a small business 401k that the firm’s clients and their employees can use to plan, save and invest for retirement.
With Everyday 401(k), small business owners can “quickly and easily set up a 401k plan by selecting J.P. Morgan Asset Management’s ready-to-use solutions or by customizing their own plan. Plans start as low as $75 per month, and $5 per participant per month,” according to the company.
“JPMorgan Chase is firmly committed to driving stronger retirement outcomes for all Americans, particularly as businesses and individuals grapple with this challenging economic environment,” Jamie Dimon, Chairman and CEO, JPMorgan Chase & Co., said in a statement. “By leveraging capabilities across J.P. Morgan Asset Management and Chase, we are uniquely positioned to support small businesses with solutions such as Everyday 401(k).”
The launch follows research from J.P. Morgan Asset Management indicating that the large majority (85%) of small business owners are confident their business will survive the current economic environment. The survey also revealed:
- More than one-third of small business owners plan to offer a 401k in the next year while less than half (48%) currently offer a 401k plan
- Retaining and attracting new employees are seen as top motivators for small businesses to offer a 401(k) plan in the future
- Low revenue is cited as the top reason small businesses do not offer a 401k plan, while nearly a quarter believe administration is too costly
Everyday 401(k) allows small business owners to commence setting up a plan and enrolling their employees online at Chase.com.
The process
After answering a few questions to narrow plan options, determine pricing and select the plan for their business, owners can choose a customized plan and enroll their employees.
From here, business owners simply need to confirm details with an SS&C Retirement representative to give employees access to JPMorgan Chase resources and advice to plan, save and invest for the future. SS&C Retirement Solutions has more than 30 years of experience servicing more than 10 million plan participants.
“Now more than ever, small business owners are struggling to keep their doors open and retain their employees,” added Jennifer Roberts, CEO, Chase Business Banking. “And we know small business owners see their employees as family. This is a simple, affordable way for them to offer the added perk of a retirement plan, something previously thought of as a benefit you could only get from a larger employer.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
