Netchex, a leading provider of human capital management (HCM) solutions for small and medium-sized enterprises (SMEs), has announced the launch of Netchex 401k. This new solution, powered by Vestwell, aims to simplify retirement savings administration for employers, making it easier and more cost-effective to offer this essential employee benefit.
- Launch Announcement: Netchex introduces Netchex 401k, a new retirement savings administration solution designed to streamline the process for SMEs.
- Partnership: The solution is powered by Vestwell, a leading platform known for its comprehensive savings solutions for businesses and individuals.
In today’s competitive labor market, retirement benefits are a key factor in attracting and retaining employees. According to recent data:
- 77% of working Americans consider 401k and pension plans among the most crucial employer-sponsored financial wellness benefits.
- Tax Advantages: Employer contributions to 401k plans are tax-deductible on federal income tax returns, and new 401k plans may qualify for up to $16,500 in tax credits over the first three years to offset setup costs.
Setting up and managing 401k plans can be complex due to:
- Regulations: Navigating complex regulations and compliance requirements.
- Administrative Tasks: Handling tasks like enrollment, contribution calculations, and ongoing administration.
Netchex 401k addresses these challenges with several key features:
- Easy Setup: Streamlined setup process that minimizes time and resources for employers.
- Fully Integrated: Manage corporate Match Policies, Safe Harbor, and Fund Vehicle Selections from a single platform, reducing administrative workload.
- Unified Management: Integrates 401k management with other HR functions on the Netchex platform for a seamless user experience.
- Employee Self-Service: Provides a web and mobile application for employees to manage their accounts, check balances, and make investment decisions.
- Will Boudreaux, CEO of Netchex: “We are thrilled to unveil Netchex 401k in partnership with Vestwell. Our goal is to eliminate barriers and make it easier for businesses to offer valuable retirement benefits.”
- Aaron Schumm, CEO of Vestwell: “We are proud to be the preferred partner for Netchex’s 401k solution. Our platform offers a broad spectrum of workplace savings solutions that can be easily integrated with a 401k plan.”
- Abhinav Agrawal, Chief Product & Technology Officer at Netchex: “Netchex 401k offers a straightforward, out-of-the-box solution that simplifies retirement savings for both employers and employees.”
- Automated Features: Reduces administrative burdens with automated processes.
- Streamlined Processes: Simplifies the management of retirement savings plans.
- User-Friendly Platform: Enhances employee satisfaction with easy access to account information and investment management.
Netchex 401k is a significant addition to Netchex’s suite of HCM solutions, offering SMEs a streamlined and cost-effective way to provide retirement benefits. By partnering with Vestwell, Netchex brings a robust and user-friendly solution to the market, helping businesses attract and retain top talent while managing retirement savings efficiently.
