As limited 3(16) plan administrator, Betterment handles the agreed-upon operational and administrative fiduciary responsibilities: annual compliance testing (ADP/ACP, top-heavy), calculating contributions, preparing signature-ready Form 5500s, and delivering audit packages. This offloads significant administrative burden and liability from the plan sponsor.
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.
