Betterment Advisor Solutions Launches Solo 401(k)s for Self-Employed

RIA custodian Betterment Advisor Solutions has launched a 401(k) for independent advisors and their self-employed clients.

The all-digital plan is built on Betterment’s record keeping  system, which powers Betterment at Work. According to a news release from Betterment, the advantages of solo 401(k)s are mitigated by their complexity of setup and maintenance, making them cumbersome and time-consuming for advisors and their clients. Betterment Advisor Solutions says its new offering solves this issue by through a fully digital interface for both advisors and clients.

Key features of the solo 401(k) include:

• Paperless account opening and no setup fees
• Supports fully digital contributions
• Allows spouse participation at no extra cost
• Both Roth and traditional tax strategies available

“The solo 401(k) is one of our most requested new products, and we are thrilled to launch a solution tailored to this market,” Thomas Moore, Head of Betterment Advisor Solutions, said in the release.  “Self-employed owners have traditionally been underserved by retirement products, and this innovation closes the gap for them and the advisors who serve them.”

A survey conducted recently by Betterment Advisor Solutions reveals that retirement planning is critical for advisors today. Over 80% manage 401(k) plans, and among those who don’t, most plan to.

Betterment Advisor Solutions reports that it is planning other product launches and upgrades this year.

The company will present a demo session at booth 500 at the T3 Technology Conference in Dallas from March 3-6.