Plan Management

ERISA requires that 401(k) assets are held in trust, separate from the employer or any service provider's business assets. This means that in the event of bankruptcy, the funds are not part of the employer or service provider's bankruptcy estate and are not subject to claims from the employer's creditors. As a part of our service offering, you (the Plan Sponsor) have appointed Inspira Financial Trust, LLC (“Inspira Financial”) as the non-discretionary trustee of your 401(k) plan assets. ...

What is a catch-up contribution? Catch-up contributions give workers aged 50 and older a way to boost their retirement savings, especially if they couldn’t contribute to a 401(k) as much as they wanted to earlier in their career. The IRS sets a limit for how much people can contribute to their 401(k). Catch-up contributions go above this limit specifically for those aged 50 and over. What are the new regulations going into effect in January 2026? Starting in 2026, participants aged 50+ and who ...

Cash Fund Displays activity in the plan’s cash account. Shows all money moving in and out of the cash fund, such as corrections and reversals. Used to monitor temporary holdings before funds are allocated or invested. Common transaction types in this report include: Payroll Corrections Plan credits or debits Fees Conversions and deconversions Census Provides demographic information about plan participants. Includes participant name, SSN, address, date of birth, employment status, eligibility, ...

How do I upload payroll for my 401(k) plan? If your 401(k) plan isn’t integrated with your payroll provider, don’t worry—you can still upload payroll manually: Log in to the plan sponsor dashboard. Select "Payroll" from the left-hand menu. Click "Upload Payroll File". Follow the on-screen instructions to upload your payroll file in the required format. Review and approve the payroll for processing. Betterment integrates with over 350 payroll providers, which means there’s a good chance your ...

Where can I find my tasks? You can view your outstanding tasks from the left-hand menu in your Betterment at Work dashboard. Log in to your Betterment at Work account. From the left-hand navigation panel, click Tasks. You’ll see a categorized list of items, such as Payroll or 401(k) plan, depending on what actions are required. Each task will have a label (like “Set up your payroll integration” or “Annual documents & QDIA requiring review”). Click on a task to see what’s needed. What kinds ...

If you need more information on terminated employees beyond what’s shown in the Plan Sponsor Dashboard, you can generate a report to view their account balances. Follow these steps to identify terminated accounts that remain funded: Go to the Reports section. Select the Participant Vesting report. Choose a date. Click "Run a Report". Once the report has been generated, return to the Reports page and refresh the page to ensure the CSV file is ready for download. Running this report helps plan ...

Plan invoices are sent to the primary billing email on file, but they can also be accessed anytime through the plan sponsor dashboard. How to Find Your Invoices: Select "Settings" from the left-hand menu. In the "Your Profile" tab, scroll to the "Billing" section. Click "View & Manage Billing Information" to see and manage invoices. Payment Methods: Invoices are sent via Stripe and can be paid directly from the billing email. You can also pay through the Stripe payment portal, accessed via ...

If you’re having trouble accessing the plan sponsor dashboard, you can reset your password by following these steps: Go to the Plan Sponsor Dashboard: (401k.betterment.com) Click "Forgot Your Password?" on the login page. Enter the email address associated with your plan administrator account and submit the request. Make sure to enter the correct email address. If the system does not recognize the email, it will not send a password reset link. Also, be sure to reset your password on the plan ...

To check your eligibility requirements, which determine when employees can start participating in the 401(k) plan, follow these steps: Check the Plan Highlights: The first two pages of the plan document typically contain a summary of eligibility rules. Review the Adoption Agreement: The Eligibility section (Section B) of the Adoption Agreement provides details on: Age and service requirements for 401(k) plan participation. Entry dates (when employees can start contributing after meeting ...

To check your vesting schedule, which outlines how employees earn ownership of employer contributions, follow these steps: Check the Plan Highlights: The first two pages of the plan document usually contain a summary of the plan including the vesting schedule. Review the Adoption Agreement: The Vesting section (Section E) of the Adoption Agreement provides details on: Vesting computation method (e.g., elapsed time or hours of service). Vesting exclusions (such as service before plan start ...

As a plan sponsor, you have access to several key plan documents that outline the details and administration of your retirement plan, including: Plan Highlights – A summary of key features and benefits Adoption Agreement – Specifies employer-selected plan options Base Plan Document – Includes comprehensive legal provisions Summary Plan Description – Explains plan details in an easy-to-understand format for participants Annual Notice – Provides required yearly updates on plan changes and options ...

You can track plan activity, total contributions, and other key data in the Reports section of your Plan Sponsor Dashboard. This section provides valuable insights into plan performance, participant activity, and financial details. To access reports: Navigate to the Reports section in your dashboard. Select the relevant report type based on the data you need. Apply filters, such as date range or participant details, if available. Run and download the report for review. Regularly reviewing these ...

To update an employee’s employment status, follow these steps: Locate the employee in the Plan Sponsor Dashboard. Navigate to the Employment information box. Click View and edit employment history. Select Add a record, enter the termination date and status, and save. It’s important to add a new record rather than editing existing records to ensure accurate employment history tracking. Always refer to your plan document for details on eligibility and entry rules. Available status options include ...

To confirm which employees have not claimed their 401(k) account, follow these steps in the Plan Sponsor Dashboard: Go to Reports. Click the dropdown menu labeled Select a report type. Choose Unclaimed Employees. This will generate a CSV file listing employees who have not yet claimed their account. The report includes their names, emails, hire dates, and eligibility dates.

Can my Betterment 401(k) plan offer participant loans? Yes! If your plan is on the Pro or Flagship service level, it may offer participant loans. To check if loans are allowed, review your Summary Plan Description (SPD). If you’d like to add or remove loan options, a plan amendment is required. What are the limits on participant loans? If your Betterment 401(k) plan includes loans, they must follow IRS guidelines: Participants can borrow up to 50% of their vested balance, with a maximum loan ...

This outlines how Plan Sponsors can process 401(k) loans and manage repayments. For plan-specific rules, refer to your loan procedures document and consult your recordkeeper or third-party administrator. Participant Loan Requests Participants can request a 401(k) loan by logging into their account and following these steps: Navigate to: Transfer or Rollover > Withdraw > Your 401(k) Account > View Withdrawal Options If eligible, the loan option will be visible. The participant must link ...

Why is two-factor authentication (2FA) required? To strengthen cyber and information security, 2FA is required for all plan sponsor accounts. This extra layer of protection helps the Plan protect from unauthorized users accessing sensitive information. How do I set up 2FA? When you log in, you’ll be prompted to enroll in 2FA. You can choose to verify using either: A phone number (via text message or phone call) A time-based one-time password (TOTP) authenticator You can also choose “Remember me ...

Why are we collecting this information? You may be familiar with these types of checks as they’re common with institutions like banks where identification needs to be confirmed to mitigate risk. To meet our regulatory requirements, we need to periodically confirm this information. Going forward, we’ll audit it as we prepare your annual regulatory filings. What is KYB and why is Betterment requesting beneficial ownership information? KYB stands for "Know Your Business." It’s a regulatory ...

You can check employee enrollment in two ways: 1. From the employee’s profile: Log in to your Plan Sponsor Dashboard Go to the Employees tab Search for and select the employee’s name Click the Activity tab to view their enrollment status Select the Activity tab to view their 401(k) status You may see one of the following: Invited: The employee has received their invite but hasn’t taken action Not Enrolled: The employee joined but hasn’t made a contribution yet Enrolled: Their first contribution ...

There are two types of bank accounts associated with your plan: one for payroll and compliance-related funding, and one for billing and invoice payments. Payroll Bank Account This account is used to fund participant transactions, including: Payroll contributions Compliance-related actions such as refunds and corrections Any other activity that results in money being deposited to participant accounts You can view or update this account in the Bank accounts section under Settings > Your ...

What is a 401(k) plan audit? A 401(k) plan audit is an independent review conducted by a certified public accountant to ensure the plan complies with Department of Labor (DOL) and Internal Revenue Service (IRS) regulations. The audit verifies that contributions, distributions, and plan administration are accurate and in compliance with legal requirements. Does Betterment conduct 401(k) plan audits? No, Betterment does not conduct 401(k) plan audits. Employers must engage a qualified, ...

What happens to a terminated employee’s 401(k) account? When an employee is terminated, their 401(k) account remains active and vested based on the plan’s rules. They can no longer make contributions, but their investments will continue to fluctuate with the market. Former employees can choose to keep the account where it is, roll it over to another retirement account, or take a distribution (which may be subject to taxes and penalties). Do I need to notify Betterment when an employee is ...

Why do I need to review distribution requests? As the plan sponsor, you play a key role in confirming distributions are processed correctly. Your review helps verify that the request aligns with your plan’s rules and that participant information is accurate before any funds are released. What types of distributions might you be asked to review? You may see requests related to: Rollovers to another provider Hardship withdrawals Loans Required minimum distributions (RMDs) Distributions for ...

What is an EACA? An Eligible Automatic Contribution Arrangement (EACA) is a feature in a retirement plan, such as a 401(k) plan, that allows employers to automatically enroll employees in the plan at a uniform predetermined contribution rate after giving them a required notice. Employees are 100 percent vested in their automatic enrollment contributions. This feature is designed to encourage retirement savings while still providing employees with flexibility to opt-out or change their ...

What are compliance corrections in a 401(k) plan? Compliance corrections help to ensure that employees receive the retirement benefits they are entitled to when a plan error occurs. Common corrections include: QNEC (Qualified Non-Elective Contribution): An employer contribution made to correct plan failures, including replacing the opportunity to a participant who wasn’t permitted to make an elective deferral. The QNEC is allocated to employees regardless of their participation. These funds are ...

For 2025, the 401(k) contribution limits are: Standard Contribution Limit: Employees can contribute up to $23,500. Catch-Up Contributions for Ages 50 and Above: Individuals aged 50 and over can contribute an additional $7,500, bringing their total contribution to $31,000. Special Catch-Up Contributions for Ages 60 to 63: Employees in this age group can contribute an extra $11,250, increasing their total to $34,750. Combined Employee and Employer Contribution Limit: The total combined amount ...

Employees can update their 401(k) contribution rate by logging into their Betterment account on a web browser and navigating to their Retirement account. On the Retirement page, they will see an "Edit" link in the “Recurring transactions” section. Clicking this will allow them to adjust their contribution by percentage or dollar amount for the next pay period From the mobile app, the employee can click on the Retirement envelope and click on the Edit under the Recurring Transaction section. ...

What are forfeiture, cash and suspense funds? Unallocated funds are assets within a 401(k) plan that have not been assigned to specific participant accounts. They typically accumulate due to administrative processes and fall into three main categories: Forfeiture Funds: Unvested employer contributions forfeited when an employee leaves before full vesting. Cash Funds: Residual amounts from payroll corrections or recordkeeping adjustments. Suspense Funds: Excess employer contributions or ...

In accordance with Internal Revenue Code § 411(a)-11, B4B acts as an ERISA 3(16) administrative fiduciary when processing automatic rollover distributions of eligible participant accounts (force-outs) to individual retirement accounts at Inspira Financial Trust Company (Inspira). A 401(k) force-out allows a plan sponsor to remove a former employee’s assets from the retirement plan if their balance is below a set threshold (typically $5,000, but this may vary up to $7000 because of SECURE ACT ...

When you reject a distribution request, the participant will be notified by email, and the request will not be processed. However, they can submit a new request if they still wish to proceed.

To review and approve pending distribution requests, log in to your Betterment account and navigate to the Tasks section. Here, you’ll see any outstanding requests that require action. Before approving, ensure the request aligns with your plan’s rules and that the employee meets any necessary eligibility requirements. Once approved, distributions typically process within 5 business days.

Does our Betterment retirement plan offer hardship distributions? Hardship distributions may be available, depending on your plan’s specific settings or design found in your Summary Plan Description or other plan documents (plan documents). As a Plan Sponsor, you can review your plan documents or contact Betterment to confirm whether hardship withdrawals are an option for your employees. How can employees check if they’re eligible for a hardship withdrawal? Employees can log in to their ...

Terminated employees have several options for managing their existing 401(k) vested balance: Leave the funds in the current plan – Some plans allow former employees to keep their funds in the plan, though balances under $7,000 may be subject to mandatory distribution if your plan has a force-out provision. Rollover to an Individual Retirement Account (IRA) – Funds may be transferred to an IRA to maintain tax advantages and investment growth at Betterment or another institution. Rollover to a ...

How can employees roll over funds into a Betterment 401(k)? To roll over retirement funds from another provider into a Betterment 401(k): Log in to Betterment from a web browser. Select Transfer or rollover > Rollover to Betterment > 401(k) rollover. Follow the prompts to enter fund details and generate a Rollover Form with check payable and mailing instructions. Send the check to: Regular Mail: Betterment 401(k) PO Box 208435 Dallas, TX 75320-8435 Overnight by Special Courier: Lockbox ...

The enrollment process depends on whether your plan has automatic enrollment. If your plan has automatic enrollment, employees are automatically enrolled at your set contribution rate. They can adjust this rate by claiming their account through the invitation email sent to them. If your plan does not have automatic enrollment, employees must claim their account via the invitation email and set their contribution rate by following these steps: Via web browser: Select Retirement goal from the ...

Once payroll is approved, it can take up to five business days for employees to receive their 401(k) contributions. Until processing is complete, contributions will display as pending in employee accounts. Timely payroll approval helps ensure smooth processing and accurate contribution tracking for employees.

Why is the remittance of 401(k) contributions important? Timely 401(k) remittances are necessary for compliance with Department of Labor (DOL) regulations and helping employer contributions remain tax-deductible. Delays can lead to compliance issues and potential penalties. When should employee 401(k) contributions and loan repayments be remitted? For small plan filers (typically under 100 eligible employees), the DOL provides a 7-business-day 'safe harbor' period. This means employee ...

Betterment delivers annual notices and fee disclosures electronically to participants. Employees are notified when these documents are available for download in their accounts. However, some participants may opt out of electronic delivery, and plan sponsors are responsible for providing printed copies to those individuals. To determine who has opted out, plan sponsors can generate a Census report by logging into the Plan Sponsor Dashboard and navigating to Resources > Reports > Run a ...

What is the SECURE Act 2.0? The SECURE Act 2.0 is a law designed to improve retirement savings opportunities. Building on the original SECURE Act, it introduces changes that expand access to retirement plans, increase savings potential, and simplify plan administration. What are the key provisions of the SECURE Act 2.0? Automatic Enrollment: Starting in 2025, new 401(k) and 403(b) plans must automatically enroll eligible employees at a minimum of 3%, increasing annually until reaching at least ...

What is a 401(k) plan document? A 401(k) plan document is the official set of rules that governs how a company’s retirement plan operates. It defines eligibility, contributions, vesting schedules, distributions, and other key plan design features. This document defines the plan’s legal and regulatory requirements while providing clear guidance for both employers and employees. What information is included in a 401(k) plan document? A plan document typically details: Eligibility rules – When ...

A 401(k) plan committee is a group responsible for overseeing a company's retirement plan, ensuring it is well-managed and in compliance with applicable law, rules and regulations. . While not legally required, forming a committee helps improve oversight and creates prudent fiduciary governance for your plan and its assets. Typically, members include senior leadership, HR representatives, and legal and compliance, each contributing their expertise to decision-making. The committee’s duties ...

What is a 401(k) fiduciary? A 401(k) fiduciary is responsible for managing a retirement plan in the best interest of employees. This means making informed, fair decisions about plan investments, fees, and administration while following legal guidelines. Who has fiduciary responsibilities in a 401(k) plan? Employers who sponsor a 401(k) plan are typically fiduciaries, along with anyone who makes discretionary decisions about the plan’s investments or administration. Some responsibilities can be ...

Employees can reach Betterment for 401(k) support through the following options: Email: Send inquiries to support@betterment.com. Chat: Log in to their Betterment account and use the in-app chat feature. Phone: Call (718) 400-6898 Monday through Friday from 8 AM to 8 PM ET. Employees can also find information at our Employee Resource Center. Betterment’s support team is available to assist with account access, contributions, withdrawals, and general plan questions.

If an employee has not enrolled, you can resend their invitation email from the Plan Sponsor Dashboard by following these steps: Go to the Employees tab and select the Employees page. Locate the employee’s profile. Click Online Account Access. Select Resend Email Invite. If the option to resend is not available, you will see Account Created, meaning the employee has already set up their account and no further action is needed. The option to resend the enrollment email is not available to plan ...

Plan managers with administrative access can grant or revoke dashboard access for others. To manage plan access, go to Settings in the Plan Sponsor Dashboard, then select Manage Access. Add a plan manager – Click Add Plan Manager and select their access level. Remove a plan manager – Click Deactivate next to their name to revoke access. Re-add a plan manager – Click Activate next to a previously deactivated manager’s name. Plan manager access levels: Administrator – Full dashboard access, ...

If your plan is integrated, new employees will be added automatically. No action is needed. If your plan is not integrated, you will need to add the employee manually: Log in to the Plan Sponsor Dashboard. Go to "Employees" and select "Add Employees." Enter the required employee details and save.

The bulk upload tool allows plan sponsors to efficiently add multiple employees to their 401(k) plans. Follow these steps to complete the process: Log in to the Employer Dashboard. Go to "Employees" and select "Add employees." Download the bulk upload template. This ensures all required employee details are formatted correctly. Fill in the template with each employee’s name, email, and other necessary information. Upload the completed file. Review the information and confirm the upload. For a ...

At this time, Betterment does not offer 401(k) resources or support in Spanish. However, if someone prefers to call our support team with their own translator, such as a friend or family member, we are more than happy to assist.

We may request a copy of your employee’s Social Security card if we are unable to automatically verify their SSN. Additionally, if the provided address is a P.O. Box or a recently changed address, we may require proof of residence. These steps help to ensure accurate account setup and compliance with regulatory requirements.

All eligible employees who do not wish to contribute in the future can opt out by changing their deferral rate to 0% in their Betterment account. Betterment cannot reverse contributions once they are made. However, your plan may allow for an Eligible Automatic Contribution Arrangement (“EACA”). If a plan allows, any necessary withdrawals due to auto-enrollment must be handled through standard 401(k) withdrawal options. Employees can update their contribution rate by following these steps: From ...

What payroll providers does Betterment integrate with? Betterment integrates with over 350 payroll providers, simplifying 401(k) plan administration by automating tasks such as employee eligibility tracking and contribution management. This extensive integration network helps businesses efficiently manage their retirement plans without manual intervention. How can I check if my payroll provider integrates with Betterment? To verify if your payroll provider is compatible: Search for Your ...

What are 401(k) fees? 401(k) fees are charges associated with managing and maintaining a 401(k) retirement plan. These fees can significantly impact the growth of your retirement savings over time. What can employers do to manage 401(k) fees? As a plan sponsor, it's your fiduciary duty to help to ensure that the services provided to the plan are necessary and that the cost of those services is reasonable. Benchmarking your plan's fees against similar retirement plans can help determine if they ...

If your plan is payroll-integrated, Betterment automatically tracks employee eligibility and status based on payroll data. If your plan has no service requirement, all employees who are 18 or older are eligible immediately. For plans that require manual updates, you can correct an employee’s status in the Plan Sponsor Dashboard: Locate the employee in the dashboard. Navigate to the Employment information box. Click View and edit employment history. Select Add a record, enter the termination ...

Plan sponsors can generate reports in Betterment by navigating to Resources > Reports in their Plan Sponsor Dashboard. This section provides access to key plan details and insights, helping you track contributions, participant activity, and overall plan performance.

What is the Form 5500? The Form 5500 is an annual report filed with the U.S. Department of Labor that provides financial, investment, and operational details about a 401(k) plan. It satisfies annual reporting requirements under ERISA and the Internal Revenue Code and serves as a tax return for the plan. When is the Form 5500 due? The Form 5500 is due by July 31, which is seven months after the end of the plan year. If the deadline is missed, an extension can be filed to extend the deadline ...

Employees are responsible for tracking their total 401(k) contributions across multiple employers to ensure they do not exceed IRS limits. Contributions made to a previous employer’s 401(k) still count toward these limits. 2025 Contribution Limits Standard Employee Contribution Limit (402(g)): $23,500 Catch-Up Contribution for Employees 50+: $7,500 (total employee contribution limit: $31,000) SuperCatch-Up for Employees 60-63: $11,250 or 150% of the regular catch-up limit (whichever is ...

Employee type errors in Gusto occur because only certain Gusto companies have the option to designate benefits eligibility. If your company uses Gusto to manage or broker medical, dental, or vision benefits, this option is available. However, if Gusto is not used for benefits management, you can only select a compensation type (hourly, salaried, etc.). In this case, the benefits eligibility field won’t appear since benefits are managed separately or limited to a 401(k). To resolve employment ...