Transamerica announced this week it has been selected by retirement technology provider Smart to be the recordkeeper for a new 401k solution offered through Finhabits, a market-leading U.S. fintech provider by Latinos for Latinos.
The new retirement program is designed to offer small businesses and their workers a simple, bilingual, and affordable alternative to state-mandated retirement plans in California and other states.
“Finhabits encourages Americans from diverse backgrounds to build wealth for the future. Partnering with Smart and Transamerica enables us to help millions of workers who now will be able to save for retirement for the first time,” said Carlos Garcia, Founder and CEO of Finhabits.
The Finhabits group plan solution includes services offered by well-respected financial and technology companies:
- Finhabits Advisors, LLC will serve as the program’s 3(38) investment fiduciary.
- Smart, a leading global retirement technology provider, will serve as the program’s lead fiduciary and plan administrator.
- Transamerica will serve as the program’s recordkeeper.
- TAG Resources, LLC, a wholly owned subsidiary of Transamerica, will act as the plan’s third party administrator and 3(16) plan administrator fiduciary.
“We believe this solution will help to efficiently serve small businesses with a seamless, all digital onboarding journey that allows a business owner to select and initiate a plan in just a few clicks and less than 15 minutes,” said Jodan Ledford, CEO of Smart in the U.S.
Employers will be able to start a 401k plan directly in the Finhabits app. Plan implementation is fully electronic, accelerating and streamlining the process for plan sponsors.
“This program is unique because it strongly supports companies that have a significant community of Spanish-speaking workers.”
Transamerica’s Darren Zino
Participants will have access to Transamerica’s website in Spanish and English. The website’s features help enable participants to take control of their retirement planning, access educational resources to make informed decisions, and initiate transactions, such as contribution increases or distribution requests. Transamerica will also offer call center representatives that are fluent in Spanish.
“Transamerica has an extensive history of helping to close the retirement coverage gap in the United States. We are happy to help deliver this program that was created especially for the Latino community, when 64% of Latino workers lack access to an employer-sponsored retirement plan,” said Darren Zino, Senior Managing Director of U.S. Retirement Distribution for Transamerica. “This program is unique because it strongly supports companies that have a significant community of Spanish-speaking workers. Transamerica is excited to be part of this solution and better prepare a new generation of employees for a secure future.”
For more information about the Finhabits 401k program, visit www.Finhabits.com/401k.
SEE ALSO:
• Transamerica Buys TAG Resources, Bolsters Pooled Plan Offerings
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.
