Transamerica today announced the continuation of its successful “401(k)ares” campaign to boost middle- and small-market American workers’ access to tax-deferred savings programs.
The initiative is part of Transamerica’s broader strategy to become America’s leading middle market life insurance and retirement company, providing recordkeeping and investment services for U.S. defined contribution plans and advice to plan participants.
A variety of financial incentives are set to kick in beginning Sept. 1 to help spur participation in the campaign, which debuted last year. For the remainder of 2023, small businesses that choose Transamerica as their retirement plan provider will have specific HSA/FSA administration and participant fees waived for two full quarters.
Additionally, Baltimore, Md.-based Transamerica will offer its Plan Administration Service Support (PASS) communication services free of charge during the retirement plan’s conversion period. The offer will be in conjunction with Transamerica’s third-party administrator partners, who as part of this campaign, will receive additional credits for transferring existing retirement plans.
New this year, TPA partners who transition an employer’s SIMPLE retirement plan to a Transamerica retirement plan will receive a credit of $250 in addition to any credits they may already receive. The SIMPLE plan must terminate in 2023 and transition to the Transamerica plan in 2024 to qualify for the credit.
“At Aegon’s recent Capital Markets Day, the company [Transamerica is part of the Aegon group of companies] outlined plans to accelerate Transamerica’s growth and build America’s leading middle market life and retirement company. We are laser-focused on making that happen,” said Phil Eckman, president of Workplace Solutions at Transamerica. “Our small business incentive campaign, called 401(k)ares, is designed for everyday Main Street employers seeking to attract and retain employees as they focus on growing their business.”
Health and medical savings accounts offer substantial tax savings, empowering employees to pay for current eligible medical expenses or invest and save for future health expenses in retirement. Employee contributions to these accounts accumulate and grow tax-free until used for allowable medical expenses, even during retirement years. This factor makes health savings accounts (HSAs) a powerful component to offsetting medical costs in retirement that Medicare does not cover.
“Transamerica is committed to helping everyone secure a financially stable future, and our special offering for small businesses reflects that pledge,” Eckman said. “We believe all American workers need access to tax-deferred workplace savings programs, and this opportunity helps both employers and employees build a more secure future.”
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Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.