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Betterment Advisor Solutions Introduces Digital Solo 401(k)

Betterment Advisor Solutions (BAS), recognized as a leading custodian for modern Registered Investment Advisors (RIAs), has recently announced the launch of an all-digital solo 401(k). This new offering is specifically designed to cater to the needs of independent advisors and their self-employed clients, addressing a significant gap in the retirement planning market.

A New Era in Retirement Planning

With a rising number of individuals choosing self-employment, understanding and managing retirement options has become increasingly important. Traditional solo 401(k) plans have often been complicated by lengthy setup processes and maintenance requirements. BAS aims to streamline this experience by offering a fully digital solution that eliminates cumbersome paperwork.

The solo 401(k) from Betterment is built on their robust record-keeping system which currently supports their Betterment at Work platform. This allows users to navigate their retirement planning with ease, ensuring a smoother experience from start to finish.

Key Features of Betterment's Solo 401(k)

The all-digital solo 401(k) boasts several features that provide benefits for both advisors and their clients:

• - Paperless Account Opening with No Setup Fees: Users can initiate their retirement planning without the burden of initial costs or paperwork, a significant advantage for busy advisors and self-employed individuals.
• - Fully Digital Contributions: This feature allows clients to make contributions in real-time, facilitating easy management of their retirement funds without delays.
• - Spousal Participation at No Extra Cost: The solo 401(k) plan allows for a spouse's inclusion without incurring additional charges, making it a flexible solution for family-run businesses or partnerships.
• - Roth and Traditional Tax Strategies: Advisors can offer clients varied tax strategies, catering to their individual financial situations and preferences.

Addressing Industry Needs

As mentioned by Thomas Moore, Head of Betterment Advisor Solutions, the launch of the solo 401(k) addresses a pressing need within the retirement planning sector. Many self-employed individuals have historically faced challenges in accessing adequate retirement products. This new solution intends to fill that gap, providing necessary resources for both individuals and the advisors supporting them.

Recent surveys conducted by Betterment Advisor Solutions indicate that over 80% of emerging advisors are currently managing 401(k) plans. Among advisors who do not manage them, many indicate intentions to pursue 401(k) offerings in the near future. This underscores the importance of streamlining access to retirement tools, ensuring that both advisors and their clients can manage their financial futures effectively.

Upcoming Demonstrations at T3 Conference

Advisors looking to explore this new offering can attend a demonstration session during the upcoming T3 Technology Conference in Dallas, Texas, scheduled from March 3-6, 2025. Betterment will be exhibiting at booth 500, providing invaluable insights on how the solo 401(k) can be integrated into their service offerings.

Conclusion

With the launch of its all-digital solo 401(k), Betterment Advisor Solutions demonstrates its commitment to revolutionizing retirement planning for self-employed individuals. This comprehensive digital tool not only simplifies the setup process but also enhances the overall experience for both advisors and their clients, ensuring a more efficient path to financial security in retirement. As Betterment continues to innovate in this space, we can expect further enhancements and product launches throughout 2025, underscoring their dedication to supporting independent advisors effectively.