Equitable unveiled a new 401(k) program for small businesses Tuesday, including those with startup plans and plans with assets of up to half a million dollars.
The company says the new program will focus on the underserved micro 401(k) market, capitalizing on the growth of state-mandated retirement plans for smaller employers. The goal is to simplify the onboarding and administrative experience for plan sponsors and financial advisers from consultation to implementation.
“We anticipate the enhanced tax credits for small businesses establishing retirement plans included in the SECURE Act 2.0 proposal will help grow the micro 401(k) market over time,” Keith Namiot, chief operating officer of group retirement at Equitable, said in a statement.
Namiot added that Equitable aligned the new program with where he expects the market to grow, and added that he's “excited to help plan sponsors and advisors overcome the administrative barriers associated with setting up 401(k) plans — a hurdle that has historically deterred many small businesses from offering them.”
All new Equitable 401(k) clients with plan assets of up to $500,000 will have access to the new program, called Retirement Gateway for Small Business.
Compass Retirement Consulting Group will serve as third-party administrator and 3(16) administrative fiduciary for the program.
American Century announced Tuesday the launch of Income Blueprint, an online tool to help retirement plan fiduciaries evaluate and choose in-plan guaranteed income products for their clients according to the specifications of the SECURE Act. American Century says the Income Blueprint tool will simplify the current suite of available products, as well as generate a customizable report that compares and scores each one according to plan preferences.
“As the Baby Boomer generation ages, a growing number of people are moving from accumulation of assets to withdrawal of funds at retirement, increasing demand for these products,” Glenn Dial, senior retirement strategist at American Century, said in a statement.
Dial added that overall interest in the product is high, with 76% of respondents in American Century’s 2021 retirement survey displaying interest in investment options specifically designed to help retirees draw income from their plans.
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