What happens to employees' investments during a plan conversion?

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 ...

Do we have an account manager?

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.

Do we need to participate in a state-sponsored retirement plan?

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.

Understanding Fidelity Bonds

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 ...

Onboarding

How it works

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 ...
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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.
Read More
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.
Read More
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 ...
Read More