New Program Integrates 401(k) and HSA Deferrals

The firm describes its NestUp Managed Deferrals program as the “first and only program that educates employees, offers them personalized 401(k) and HSA deferral recommendations, and implements their choices with just two clicks.”

NestUp also recommends directing HSA deferrals to different retirement-oriented investments when appropriate, Perspective Partners says.

“NestUp doesn’t treat HSAs and 401(k)s as separate silos,” explains CEO of Perspective Partners, David Snyder. “It takes an integrated approach that optimizes employer matching and tax benefits. And by helping employees save for near-term out of pocket costs, it can lead to greater acceptance of high deductible health plans. It’s a win-win for both employers and employees.”

NestUp recently completed a two-year pilot program. According to Perspective Partners, “HSAs were increased both years by employees who received personalized guidance to do so along with a ‘do-it-for-me’ option for easy execution. In year one, 47% of those employees made an increase. In year two, it was 68%. Deferrals into 401(k)s were also increased both years by employees who received personalized guidance to do so. In year one, 60% of those employees made an increase. In year two, it was 14%.

“Because our platform pulls together education, highly personalized guidance and easy execution, NestUp is a better mousetrap that can generate far more added value and differentiation,” says Snyder. “We’re eager to work with strategically minded advisers and ecosystem partners to bring the industry to a new level.”

Perspective Partners is a wholly owned subsidiary of Manning & Napier Group.