Finishing off the month of July, ShareBuilder announces a new 401(k) product ahead of the IRS October deadline, TIAA RetirePlus passes a milestone, and Cetera brings in an advisor to join its South division.
ShareBuilder offers 401k Safe Harbor
ShareBuilder 401k is offering cost savings for employers looking to set up their first 401(k) plan before the October 1 IRS deadline.
Businesses that sign up for ShareBuilder 401k’s Safe Harbor 401(k) plan can receive:
- 66% off Safe Harbor and Traditional Plan setup between July 24 to August 7, or
- 33% off Safe Harbor and Traditional Plan setup between August 8 to August 14
“It’s a common misconception that 401(k) plans are ‘not for’ or are out of reach for small business owners,” said Stuart Robertson, CEO of ShareBuilder 401k. “The reality is, getting started with these benefits is more affordable than you might think, and the Safe Harbor 401(k) plan design helps make it simple to manage. A business with 10 employees, for instance, will pay less than $100 a month for their 401(k) plan — and then, of course, they’ll qualify to receive tax credits for the first three years that completely cover employer plan’s cost.”
According to ShareBuilder, its 401k Safe Harbor plans automatically satisfy non-discrimination compliance tests by requiring a business to provide an immediately vested match. For employers concerned about the cost of providing a match, rest assured that these plans are 100% tax deductible.
While the federal deadline to start a Safe Harbor 401(k) plan is in October, ShareBuilder says businesses should purchase and complete online installation by August 14, as it may take time to allow for employee notifications and other set up needs to ensure the deadline is met.
TIAA RetirePlus exceeds 250,000 participants
TIAA RetirePlus has recently grown to over 250,000 individual participant accounts, the organization wrote in a new update.
The platform allows plan sponsors to work with advice from a 3(21) fiduciary advisor or a 3(38)-investment manager.
“Retirement is becoming even more difficult to finance for Americans, and many are rightly worried about running out of money,” said Kourtney Gibson, chief institutional client officer at TIAA. “RetirePlus helps plan sponsors empower their employees to build a better retirement by providing access to a ‘personal pension’ like guaranteed monthly income stream in retirement. This feature is increasingly attractive for employers and employees, especially in an era of economic uncertainty.”
“Every American deserves a secure retirement, but most working people trying to save for retirement don’t have the right tools. There are many risks that erode savings that individuals cannot solve for by themselves,” said Colbert Narcisse, chief product and business development officer at TIAA. “RetirePlus is a proven solution that offers our clients the potential for enhanced retirement security.”
TIAA is also now offering a new solution for the 401(k) market – the TIAA Secure Income Account, a fixed annuity similar to the TIAA Traditional annuity. The solution is specifically designed to be used as an allocation within managed accounts or target-date portfolio strategies in 401(k) plans, according to TIAA.
Former Ameriprise rep. joins Cetera
Cetera Financial Group (Cetera) announced that Richard Routie has joined the South division of Cetera Financial Specialists.
Routie, who provides services to clients with more than a combined $38 million in assets under management and assets under administration as of April 30, was previously affiliated with Ameriprise Financial Services.
“Richard’s dedication to understanding and responding to his clients’ unique financial goals make him an ideal fit for our community,” said Ron Krueger, president of Cetera Financial Specialists. “At Cetera Financial Specialists, we pride ourselves on a culture of trust that clearly aligns with Richard’s own values. I welcome Richard aboard and look forward to working with him to elevate his business.”
Routie has 16 years of experience as an advisor, and has worked with firms including PFS Investments, Edward Jones, Chase Investment Services and Ameriprise Investment Services. Before beginning his career as an investment advisor, Routie served as a senior analyst at the Securities Industry Automation Corporation and the New York Stock Exchange.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
