ShareBuilder 401k Launches New Solo 401(k) Plan for the Self-Employed
July 09 2024 - 10:00AM
Business Wire
Solo 401k Saver Provides a Simple Digital
Interface and Low-Cost Index-Based Model Portfolios
Today, ShareBuilder 401k, a leading provider of all-ETF 401(k)
plans for small- and mid-size businesses, launched a new Solo 401k
Saver plan for the self-employed. According to the U.S. Bureau of
Labor Statistics, the number of self-employed Americans grew to
17.0M in May 2024. ShareBuilder 401k’s new Solo 401(k) Saver
product is designed to make it easier and more affordable for the
growing number of one-person businesses in the United States, with
many in the gig economy, to access the powerful saving and tax
benefits of 401(k) plans.
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Solo 401(k)s offer some significant
advantages over Traditional IRAs. (Graphic: Business Wire)
“Many self-employed persons want access to a 401(k)’s high
annual contribution limit of $69,000 to help them save for
retirement and lower taxes for the current year,” said ShareBuilder
401k CEO and President Stuart Robertson. “Moreover, they’re seeking
an inexpensive solution that’s digitally straightforward, quick and
easy to use and offers support from knowledgeable 401(k)
professionals. That’s what we created with our new Solo 401k Saver
offering. The Solo 401k Saver online setup and funding is so easy
to use that it only takes about 15-20 minutes to be up and
running.”
Since 2005, ShareBuilder 401k has offered a fully administered
Solo 401(k) plan called Solo 401k Plus. This plan includes a
broader array of features that allow multiple owners and
spouses—but not employees—to participate, offer 401(k) loans
against the plan, and for those who accumulate over $250,000, a
signature-ready Form 5500 that simplifies reporting to the IRS.
The new Solo 401k Saver plan is designed for one owner only with
carefully scrutinized investment model portfolios for retirement
saving; but does not offer options for loans, hardship withdrawals,
or the Form 5500 available with the Solo 401k Plus. The starting
monthly cost of a Solo 401k Saver plan is $8, compared to only $25
for a Solo 401k Plus plan, and both prices decrease as the account
value grows. For example, the Solo 401k Saver monthly service
charge drops to $0 when a client surpasses $25,000 in retirement
savings.
ShareBuilder 401k’s online shopping experience offers access to
professional 401(k) advisors. These pros can walk users through the
various plan options and educate them about what to consider for
retirement investing as well as strategies for lowering taxes. The
six model portfolios include core retirement-appropriate asset
classes built of index funds, and they automatically rebalance to
help make saving for retirement as easy and transparent as
possible.
Robertson believes that the number of self-employed Americans
could continue to rise with growing populations and the freedom
more individuals seek by running their own businesses and defining
their own work schedules.
“Many people’s views of employment changed during the pandemic,”
said Robertson. “They took this time to reinvent their careers,
including those deciding to start their own business and better
manage their work-life balance. We believe small businesses are the
creative, driving engine of our economy. And now, even the
self-employed—no matter their budget—can access all the benefits of
a 401(k) plan to support them as they grow.”
About ShareBuilder 401k
ShareBuilder 401k is a leading digital 401(k) provider
specializing in low-cost, all-ETF retirement products and resources
for small- to mid-sized companies, including owner-only businesses.
Founded in 2005 and now serving more than 6,500 businesses across
the US, ShareBuilder 401k is a pioneer of the index-based 401(k),
digital quoting and purchasing of retirement plans, and providing
investment management (ERISA 3(38)) services for every client’s
fund roster. ShareBuilder 401k is committed to further expanding
access to retirement plans and leading more Americans to save
through intuitive technology, low costs and quality education and
support. More information on the company can be viewed online at
www.sharebuilder401k.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240709591211/en/
Patrick Mendoza, mendozap@aristoscomms.com