Onboarding

What is KYB, and why is it required? Know Your Business (KYB) is a regulatory requirement that requires Betterment to verify the validity of the businesses we work with. This process involves identifying and verifying beneficial owners who hold at least a 10% stake in a company or, in the case of nonprofits, a control person. KYB helps maintain compliance with financial regulations and protects against fraud. This information is solely for verifying plan EINs, addresses, and beneficial owners. ...

Once you've completed the sales process and signed your service agreement, you’ll move into the onboarding phase to set up your plan with Betterment. Here’s what to expect: Access Your Plan Sponsor Dashboard You'll get an email with a personalized link to your Betterment at Work plan sponsor dashboard. This platform serves as your hub for ongoing plan management. Upon logging in, you'll find two tasks ready for you to complete: Tell us about your company and Add a bank account. The first two ...

What is a 401(k) blackout period? A blackout period is a temporary timeframe, required by regulations, when employees cannot make changes to their 401(k) accounts, such as adjusting contributions, transferring funds, or taking withdrawals. Blackout periods typically occur during plan transitions, certain investment changes, recordkeeper changes, or major administrative updates. Why do blackout periods happen? Blackout periods are necessary to ensure accurate processing of plan-related changes. ...

Your Betterment start date, also known as your payroll launch date, is the first pay date when employee deferrals will be withheld from paychecks and deposited into their Betterment 401(k) accounts. You can find this date in two places: The Onboarding section of your Plan Sponsor Dashboard Your Adoption Agreement document under Plan Features Effective Date

What is a fidelity bond? A fidelity bond is a type of insurance required by the Employee Retirement Income Security Act (ERISA) to protect 401(k) plans from losses due to fraud or dishonesty. It covers actions such as theft, embezzlement, and forgery by individuals who handle plan assets. Who is covered by the fidelity bond? The fidelity bond must cover anyone who handles plan funds or property. This includes: Plan fiduciaries, recordkeepers, administrators and trustees with authority over plan ...

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.

For plans being converted to Betterment, terminated participants' balances will be included in the transfer process, just like active employees. If a former employee still has a balance in the plan, their funds will move to Betterment along with everyone else’s. Once the transfer is complete, they will receive new account access details and can decide whether to keep their funds in the plan, roll them over to an IRA, or transfer them to another employer-sponsored plan. If the plan includes ...

Terminated employees with a balance in the 401(k) plan from a prior provider must be added to the Betterment plan to help ensure their funds remain invested. Depending on the plan design, they may keep their balance in the plan until retirement or request a distribution. To reinvest their funds in the market, they need a Betterment account. Once the plan exits blackout, they have the option to request a termination distribution if they wish to withdraw their funds. Please make sure you are ...

Plan sponsors should schedule the final 401(k) payroll with the prior recordkeeper to coincide with the pay period immediately before the first payroll run with Betterment. This helps to ensure that all contributions are processed correctly and there are no gaps in retirement plan funding during the transition. Once the final payroll is complete, Betterment will take over plan administration and begin processing contributions for future pay periods. If you have any questions about scheduling ...

When a payroll integration is newly set up, payrolls may reflect $0 if processing occurs before employee deferral rates have synced with Betterment’s system. This can happen during the initial setup period as payroll data and contribution settings align. If your plan was recently onboarded and payrolls are not showing expected contributions, check payroll settings and allow time for the next cycle to process. In many cases, the issue resolves automatically once deferral rates sync. If ...

You can check your plan’s onboarding status in the Onboarding section of your Plan Sponsor Dashboard. Here, you’ll find: Your expected launch date Any open tasks that must be completed to successfully finish your 401(k) plan onboarding Review this section regularly to ensure your plan stays on track for a smooth launch.

When transitioning to Betterment, all existing investments will be liquidated before the transfer. This helps ensure assets are properly reinvested into the new plan’s investment line-up at Betterment. Employees will be defaulted into the new plan’s investment options. The Qualified Default Investment Alternative (“QDIA”) is usually the Core Portfolio. However, advised plans may have a different QDIA selected by the plan’s advisor. After the transfer, employees can log into Betterment to review ...

Plan sponsors can view their account contact by navigating to Resources > Support in their Plan Sponsor Dashboard. This section will list their onboarding agent, dedicated representative (if applicable), or plan support team. Sponsors will also see options to schedule time with their contact or the plan support team, as well as send an email for any plan-related questions or assistance.

Many states require businesses to offer a retirement plan, and some have created state-sponsored programs like CalSavers (California) and OregonSaves (Oregon). If you offer a 401(k) at Betterment, you do not need to participate in your state’s retirement program. Additionally, employees are able to choose to roll over funds from a state-sponsored plan into their Betterment 401(k), giving them more flexibility in managing their retirement savings.