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Products August 27, 2020
Principal Creates 401(k) Platform for Small Businesses
Simply Retirement by Principal is designed for companies with fewer than 100 employees.
Reported by Lee Barney
Principal has rolled out Simply Retirement by Principal, a retirement platform designed to make 401(k) plans more accessible to businesses with fewer than 100 employees.
“Millions of small businesses do not offer a savings plan to their employees today, though our research shows the workplace is among the best places to make a positive impact on long-term savings habits,” says Jerry Patterson, senior vice president of retirement and income solutions at Principal. “The world has changed, but the importance of having a short- and long-term savings plan has not.”
The platform includes a seamless setup. Users can create 401(k) proposals online through a straightforward process that reduces paperwork. No in-person meetings are required, and, if help is needed, it’s just a phone call away.
The platform runs on the Ubiquity Retirement + Savings recordkeeping platform, offering users access to experienced retirement plan experts.
Small businesses pay a $500 one-time setup fee and a $150 monthly recordkeeping fee. Employees pay $6 a month, unless the business owner decides to cover this cost.