Retirement Plans Are Growing, But Most Technology Isn’t Keeping Up, Says 401GO

New technology is built to give advisors and payroll partners a faster way to set up and run plans for their clients

SANDY, Utah--(BUSINESS WIRE)--401GO, a vertically integrated retirement platform, says the industry's technology hasn't kept pace with the growth of retirement plans. More employers are starting plans, and plan designs get more complex as those companies grow. But most retirement technology still runs on a patchwork of outsourced services built for a smaller, simpler market.

Retirement plans are growing, especially in states running automatic-IRA mandates. In Colorado, new plans made up 18.4% of all private-sector plans in 2023, the year the state’s mandate launched, up from 12.6% the year before. More states are adopting mandates now. And SECURE 2.0’s startup tax credit makes it cheaper for employers to offer a plan for the first time.

401GO owns recordkeeping, compliance testing, plan document generation, and payroll connectivity in a single system. At most providers, those functions are split across separate companies that each handle one piece of the plan.

"Plan volume is climbing, and every new plan is one more set of records, tests and payroll data that has to stay in sync," said Dan Beck, CEO & Co-Founder of 401GO. "When that work is spread across several companies, each new plan adds another chance for something to go wrong. When it lives in one system, you can grow without adding risk."

Financial advisors get plan documents generated through an API, so plans close in days instead of months. New plan designs reach their clients without waiting on a legacy vendor's release schedule. HCM and payroll providers get direct, two-way payroll APIs instead of the limited, mostly one-way connections common in the industry. That means the retirement benefit updates in real time instead of lagging a pay cycle behind. Employers get recordkeeping, compliance testing and administration in one system instead of split across an outsourced TPA and custodian. That means fewer places for a plan to fall out of compliance, and fewer layers of administration fees for businesses of every size trying to keep their plan affordable.

"A retirement plan needs a lot of required services, and most of them get outsourced to different groups. The client usually never sees that, but they feel it," said Jared Porter, Co-Founder of 401GO. "We built 401GO to be holistic and complete, to remove the fragmentation this industry has gotten used to. Today, an advisor or payroll partner can help a business create a retirement benefit in minutes."

About 401GO

401GO is a vertically integrated retirement platform serving businesses of every size through financial advisors and HCM/payroll partners. Founded in 2018, the company owns its recordkeeping, compliance, plan document and payroll technology directly rather than outsourcing it, and pairs it with personalized support from experienced retirement specialists. 401GO supports 401(k), Solo 401(k), Starter 401(k), Safe Harbor, Cash Balance, PEP, ERISA 403(b) and IRA plans, and has been named a NAPA Top Recordkeeper every year from 2022 to 2026. Learn more at 401go.com.

To learn more, visit 401go.com