Employers in California with 5 or more employees will be required to offer a qualified retirement savings plan starting as early as 2020, or face financial penalties. The state will make its public option - CalSavers - available, but a private plan offers more flexibility and tax benefits. If your groups already have a retirement plan, it might be a good time to review options since new providers are coming to market with competitive plans ahead of this new legal requirement.
Human Interest is an online retirement plan providers that offers
- Online setup and administration with a dedicated account team
- Automated compliance and reporting
- Transparent pricing at about half the cost of most traditional plan providers
- Access to desirable, low-cost investment options and SEC-registered advisors
Benefits of a privately managed 401(k) over CalSavers (state-run IRA)
- Tax Benefits for employer and employees
- Higher annual contribution limit
- No income restriction
- Less admin work - on boarding is automated as well as reporting and compliance
- Far more investment fund options
- Faster launch
- Lower investment fees
- Allows loans
- Investments chosen by employee or advisor, not by state-appointed administrator
- Employer match allowed (but not required)
Please see Human Interest's blog post for more information on CalSavers and deadlines based on group size.
For questions, please contact your B&P Sales Rep - 888.722.3373.