What fiduciary role does Betterment play?

Betterment serves as the plan's limited 3(16) plan administrator, handling day-to-day compliance testing, audit packages, and Form 5500 preparation. On the investment side, Betterment offers a turnkey 3(38) fund lineup or supports advisors in a 3(21) or 3(38) role on an open-architecture basis.

Does the plan sponsor still have fiduciary responsibility even if Betterment is the 3(16)?

Yes. The plan sponsor always retains some fiduciary responsibility under ERISA, including the obligation to select and monitor service providers and to ensure plan fees are reasonable. Delegating fiduciary functions reduces but does not eliminate sponsor liability. The specific scope of what Betterment assumes should be clearly defined in plan documents.

What tax credits are available for new plans?

Under SECURE 2.0, small businesses with fewer than 50 employees may be eligible for up to 100% of plan startup costs, capped at $5,000/year for three years. Businesses with 51–100 employees may receive a 50% credit. An additional auto-enrollment credit of $500/year for three years is available for plans with auto-enrollment. Many plan sponsors qualify for $15,000+ in total credits over the first three years; we have a calculator you can use with clients to help determine what they may be eligible for.

How does advisor fee billing work on Betterment?

Betterment can bill plan clients on behalf of advisors based on the agreed fee schedule. Fees can be paid by the employer (as part of the employer invoice) or deducted from participant accounts, depending on what the plan document allows. Advisors should confirm billing structure with their Betterment Sales representative.

Can advisors use Betterment Advisor Solutions for both wealth management and 401(k) plans?

Yes. Betterment offers an all-in-one platform spanning both retirement and wealth management. This allows advisors to service clients across both and provide a unified experience for plan sponsors who are also individual wealth clients. Please consult with your broker-dealer to confirm that Betterment is an approved platform.

Your 401(k) advisor resource center

A deeper look at the tools, workflows, and support designed to help you launch, manage, and grow your retirement business with Betterment.

Image is illustrative.

One dashboard to manage your entire book; another to see what clients see.

Betterment separates key activities across advisor, sponsor, and participant experiences—to help you manage plans, support clients, and guide employees to retirement readiness. Here’s what you can do in each dashboard.

Advisor dashboard
Your high-level view across your entire book of business.

View all plans at a glance

Track aggregate AUM and metrics

Monitor onboarding status

Access reporting and analytics

Maintain visibility into investment oversight and plan activity

Log in to your advisors dashboard
Plan sponsor dashboard
Your plan-level admin portal, where sponsors operate their plan, and you can assist as needed.

Manage plan setup and onboarding tasks

Handle payroll and contributions

Manage participants

Handle compliance tasks

Ongoing plan administration

Log in to your Plan Sponsor dashboard

Advisor experience Manage plans with tools and insights built for you.

Image is illustrative.

Ongoing partnership
We help you grow your 401(k) business with Betterment through marketing resources and our modern tech stack. We’ll keep you informed through curated content, webinars and timely communications. Take an interactive tour of your dashboard.
Industry insights
From plan design to regulatory shifts, Betterment tracks what’s shaping the retirement landscape, sharing intel to help inform your business.
Administrative support
As the plan administrator, we handle 401(k) compliance testing, reporting, and payroll tasks. You’ll also be able to keep an eye on your plan(s) with a full suite of reports available in your dashboard.
Employee engagement and education
Betterment delivers ongoing education, retirement guidance, and personalized participant communications designed to increase engagement and help employees build long-term financial confidence.

Onboarding
Sponsors and advisors are invited to a kickoff call to learn about the process. This call is particularly helpful for conversion plans; please take a moment to read our deep-dive into the plan conversion process.
Sponsor dashboard
All tasks, participant information, and reports can be found in one place. Tour their dashboard.
Employee engagement
Betterment provides resources in the sponsor dashboard, and also emails your clients with tools and engagement opportunities throughout the year.
401(k) compliance
Betterment helps sponsors stay on track with annual compliance requirements and key deadlines. Here’s an overview of the annual compliance cycle, so everyone knows what to expect.

Participant experience Help participants invest in their future.

Image is illustrative.

Getting started
Help participants claim their account and start contributing with targeted emails and onboarding webinars tailored to your plan design.
Tech-forward platform
Make it easy for participants to manage their accounts with an intuitive web and mobile experience plus built-in retirement guidance. Take a tour here.
Robust financial planning resources
Help participants build financial confidence with educational videos, webinars, and articles. Check it out.
Personalized participant emails
Keep participants engaged with tailored campaigns, from contribution nudges to rollover reminders.