401K Plans At Betterment

Solo 401(k) Q: When is a Solo 401(k) the right fit for a client? A: Solo 401(k)s are available to self-employed individuals with no full-time employees other than a spouse. They're not just for full-time freelancers — high-income W-2 employees with side income (physicians, attorneys, executives with consulting LLCs) can qualify. Combined employee and employer contributions can reach up to $70,000+ for 2025, making them one of the highest-limit retirement vehicles available. Q: What's the ...

Advisor Tools & Practice Management Q: How does advisor fee billing work on Betterment? A: 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 CSM. Q: What advisor-facing tools are available in the Betterment platform? A: The Betterment advisor ...

Payroll Integration Q: What payroll integrations does Betterment support? A: Betterment supports 350+ payroll integrations, including a flagship integration with QuickBooks Online. For integrated payroll providers, participant accounts are created automatically, contribution rates sync without manual uploads, and plan eligibility is tracked automatically. Plans on non-integrated payroll providers can use our online manual file uploads. Q: What should advisors tell clients about integrated vs. ...

Compliance & Administration Q: What compliance tasks does Betterment handle on behalf of the plan sponsor? A: Some of the key functions Betterment handles include: ADP/ACP nondiscrimination testing Top-heavy testing Contribution calculations Form 5500 preparation (signature-ready) Audit package preparation Various participant notices (including blackout notices) Compliance Hub census questionnaires For a complete list, please review our 401(k) administrative services terms. Q: When are ...

Investments & Fund Lineup Q: Can advisors build their own fund lineup on Betterment? A: Yes. Betterment offers an open-architecture platform allowing advisors to construct custom fund lineups or outsource the investment program to Betterment's 3(38) investing team.

Advisor Plan Design Q: What plan design options does Betterment support? A: Betterment supports a wide range of plan design features, including: Safe Harbor and traditional discretionary match structures Auto-enrollment and auto-escalation (QACA) Eligibility requirements and vesting schedules Profit sharing Roth contributions 401(k) match on student loan payments Q: When should I recommend a Safe Harbor plan vs. a traditional plan? A: Safe Harbor plans automatically satisfy ADP/ACP and ...

Fiduciary Role & Responsibilities Q: What's the difference between a 3(21) and 3(38) fiduciary, and which should I recommend? A: A 3(21) fiduciary offers investment advice but the plan sponsor retains ultimate decision-making authority and liability. A 3(38) fiduciary has full discretionary control over investment decisions and assumes the associated liability, relieving the sponsor. Four factors to consider before recommending a role: The sophistication of the sponsor's governance ...

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 ...