Advisor Plan Onboarding
Q: What's the process for setting up a new 401(k) plan on Betterment?
A: Once sales agreements are signed, plans are assigned a dedicated onboarding specialist who serves as the single point of contact through setup. The process covers plan design, adoption agreement execution, payroll integration setup, and participant account creation.
Q: What should advisors do when a client wants to convert an existing plan to Betterment from another recordkeeper?
A: If this would be your first client with Betterment, you can get in touch with us here.
If you’re already using the Betterment platform for other 401(k) clients, you can either contact your Account Executive or submit a request for a new plan proposal in your advisor dashboard.
Once the client signs the sales agreement, the plan sponsor needs to send deconversion documents to the prior recordkeeper; Betterment should be copied on those communications. From there, Betterment's onboarding team leads coordination of blackout dates, participant notices, and asset liquidation timing. Advisors should set expectations upfront about the process and help keep the sponsor engaged and responsive; this article gives you a deep dive into the plan conversion process.
Q: What happens during a plan conversion blackout period?
A: Participants cannot take distributions or change investment selections during the blackout, but paycheck contributions continue. ERISA requires advance notice to participants before any blackout. Once the wire from the prior recordkeeper clears and Betterment's compliance team completes its review of transfer files, assets are allocated and participants are notified. The goal is to wrap up the blackout within 10 business days of receiving transfer files.
Q: Should I (the advisor) join the plan design review call?
A: Yes. Betterment encourages advisors to join the plan design review call, where compliance walks the sponsor through current plan provisions and captures any requested changes before the adoption agreement is drafted. This is a high-value touchpoint for advisors to ensure client preferences are properly reflected.