Millennium Trust Co. has a new suite of affordable benefits and retirement tools that small business owners can offer in lieu of a traditional 401(k).
Employers can use Workplace Savings Solutions to choose from a variety of types of individual retirement accounts that can be opened with a one-time start-up fee of $250 and that entail no ongoing costs to the business.
An interactive Retirement Savings Selector tool helps small businesses determine what type of plan is best for their company, including SEP IRAs, SIMPLE IRAs, Payroll Deducted IRAs and 401(k)s.
Savings go into professionally managed investment options that employees can view through a digital portal.
The goal is to fill what Kevin Boyles, Millennium Trust vice president of workplace savings solutions, describes as a void for businesses that aren't a fit for 401(k)s and aren't interested in a government-run option.
"We applaud everything that the states' plans and federal [multiple employer plan] legislation are trying to accomplish," Mr. Boyles said in a statement. "But even if those initiatives are extremely successful and double the number of employers with a 401(k) plan, that still leaves a significant number of businesses without retirement benefits. We're hoping to change that."
Workplace Savings Solutions could also help the growing number of gig economy workers and independent contractors who don't have any access to a 401(k) and often need help selecting the right retirement vehicle.
"We saw that years ago as 401(k)s gained prominence alongside defined-benefit plans, and I think we're at the forefront of the next evolution of retirement plans with our Workplace Savings Solutions," Millennium Trust CEO Gary Anetsberger said in a statement.