ShareBuilder 401k Promotes Value of 401(k)s During Pandemic

The company is waiving setup fees for 401(k) plans through May 21.

ShareBuilder 401k notes that 401(k)s have recovered from the market crashes caused by the COVID-19 pandemic and gone on to perform incredibly well over the past year.

The firm also notes that 401(k) plans offer additional benefits for both participants and plan sponsors beyond retirement savings, including tax benefits and protection from bankruptcy. Federal law protects most employee retirement plan balances from creditors if an employee has to file for bankruptcy, the company notes. And plan sponsors that were able to continue making tax-deferred contributions to their 401(k) plans also benefited from a smaller annual tax bill in 2020.

However, according to ShareBuilder 401k, it is estimated that less than 10% of businesses in the United States with one to 100 employees have a 401(k), with most business owners saying they thought their business was too small or that plans may be expensive as top reasons for not starting a plan.

To help more businesses start an affordable plan, ShareBuilder 401k is waiving setup pricing on all its 401(k) plans from May 3 through May 21. These charges normally run between $150 for a self-employed business owner opening a Solo 401(k) and $495 to $995 for businesses with multiple employees. In addition, ShareBuilder 401k notes that companies with one to 100 employees can receive up to $5,000 in tax credits for plan costs each year when they start their first plan for the first three years of the plan.

“While most people think of 401(k)s as purely retirement savings, the pandemic has revealed some other important features that can help businesses and individuals navigate during times of crisis,” says Stuart Robertson, president and CEO of ShareBuilder 401k.

More information is available at