onboarding Track client onboarding

Below, we’ll show you the steps your client will need to complete during onboarding. Some tasks are shared across all plan types, while others are specific to new plans or conversion plans (when a client is moving from another 401(k) provider). You may see additional steps in the process depending on their payroll provider. 

If you have any questions about your clients' onboarding progress, please reach out to your Client Success Manager (CSM). Their contact information is located under the Support tab within your Advisor Dashboard.

Provide company info

Clients will be asked to provide details, including their payroll schedule, tax year schedule, and a few other required fields.

 Add a bank account

This is the bank account that will be used to fund 401(k) employee contributions. (Your client can input more than one if needed.)

The first two steps must be completed by your client before Betterment can prepare the plan document.

Notify current 401(k) provider (Conversion plans only)

Clients will need to notify their current 401(k) provider that they will be terminating services. To get started, they will need to send the following documents to their current provider:

• Prior Recordkeeper Deconversion Letter: You can find a template of this in the Plan Sponsor dashboard under Resources > Documents.
• Custodial Letter of Acceptance (also available in the plan sponsor dashboard)
• Plan Asset Transfer Instructions (also available in the plan sponsor dashboard)  
   
  The current provider may require additional paperwork to terminate services. They will also provide your client with the blackout start date, liquidation date, and wire transfer date.

Provide info on beneficial owners or a control person

Federal regulation requires Betterment to collect information about key people in your client’s company. Clients will need to share information pertaining to beneficial owners or a control person.

Sign plan documents

Your client will sign the plan documents, which is the source of truth for all details related to the 401(k) plan. (This is different from the sales agreement that they would have already signed.) Learn more about plan documents. 

Add employees to the Betterment platform and initiate communications

This step will vary based on your client’s payroll provider:

• If the payroll provider automatically syncs with Betterment, your client will connect the platforms and review the imported data.
• If the payroll provider does not sync with Betterment, your client will upload a file with all employees.

Once employees’ email addresses are in the system, your client should communicate this information with their team, and initiate an invitation for employees to activate their accounts.

Send legal documents to select employees (New plans only)

Your client will need to mail required legal documents to any employees who have opted out of electronic communications.

Prepare for first payroll (New plans only)

Ahead of the first pay cycle, your client will set up 401(k) deductions within their payroll provider. 

Confirm fidelity bond coverage

Your client must confirm they have a fidelity bond, which is a required type of insurance that protects the plan, before their first payroll cycle with Betterment. Read more about a fidelity bond. 

Launch payroll

This step will vary based on your client’s payroll provider:

• If synced with Betterment, your client will review and approve the payroll data. (If it’s not approved within five days, Betterment will approve it automatically.)
• If your payroll provider is not synced, your client will manually upload the payroll information.

Prior plan assets wired to Betterment (Conversion Only)

After funds are liquidated from the previous provider, the plan assets will be wired to Betterment. Once all necessary reports are received, Betterment will allocate the funds into employees’ accounts.

Note: The client’s previous provider may send these reports directly to Betterment, or your client might receive them first and forward them to you.

Navigating the plan sponsor dashboard

Once onboarding is complete, your client will have access to their plan sponsor dashboard at betterment.com/work for ongoing plan management. You, as the advisor, can monitor progress and view plan activity from your own dashboard.