Frequently Asked Questions

Employers

Employees

How long does it take to set up a retirement plan for my company?

Employers/Plan Administrators can start a plan in as little as 15 minutes on the web. We send all documents electronically for approval and eSigning.

How much does a 401(k) or 403(b) cost employers?

$120 per month base fee + $4 per employee per month. For more information on pricing.

How much does a 401(k) or 403(b) cost employees?

0.50% of account balance per year + 0.07% average fund fees. For more information on pricing.

How can I reach Human Interest?

Need help? Schedule a call with us here.

Sales: To reach our dedicated sales team immediately, you can call us Monday-Friday, 9 AM to 5 PM Pacific Time at 1 (855) 622-7824.
Support: For any other questions, please email us at [email protected]

What investment services do you provide?

With Human Interest, Employers and Employees have access to nearly every mutual fund and index fund on the market (over 30,000) from Vanguard, Charles Schwab, BlackRock, Oppenheimer, Fidelity, and many more. You can find our full line-up here.

Human Interest offers built-in investment advice with personalized features to employees. Employees who want more flexibility can choose and manage their own funds. The choice is theirs.

Our investment advising can help employees diversify globally, rebalance automatically, and avoid hidden fees — all done automatically while taking their personal financial situations into account.

What tax credits are available to employers?

Businesses starting a 401(k) or other reitrement plan may be eligible for tax credits including:

The Retirement Plans Startup Costs Tax Credit, which allows eligible employers to claim 50% of their ordinary and necessary startup costs up to $5,000 per year for up to three years. Employers may choose to start claiming the credit in the tax year before the tax year in which the plan becomes effective.
Expenses incurred by employers to educate employees about the plan are also eligible.

For more information on tax credits for businesses that offer a 401(k).

Do I have to provide an employer match?

No, employers are not required to provide a match, though many do! Matching can be a powerful incentive for employees and there are major tax incentives for employers that offer a match.

For more information.

Why should I offer an employer match?

Outside of the tax deductions given to employers for making contributions to their employees’ retirement accounts, the employer match is a powerful recruiting tool to attract top talent.

Matching employer contributions, especially safe harbor matches, ensure employers are complying with IRS and less likely to fail non-discrimination testing.

What is a safe harbor plan?

A safe harbor 401(k) plan is a type of tax-deductible 401(k) plan that ensures all employees at a company have some set of minimum contributions made to their individual 401(k) plans, regardless of their title, compensation, or length of service. Employers make annual contributions on behalf of their employees without a vesting period.

There are three different “types” of safe harbor 401(k) plans, and two of them also have employer match programs. For more information.

How can you help my employees save for retirement?

We make it easy for employees to save. We get 70-90% of employees saving for retirement with a Human Interest 401(k) (our participation rate), depending on plan features.

What should I look for in a 401(k) plan and provider?

We hear from our SMB customers just how important it is to find a retirement savings plan that works for them and their employees. Here are some of the top features of a plan they’re looking for.

A plan that…

Has clear and affordable pricing;
Comes with tools to help guide employees, ranging from trustworthy investment advice to financial wellness education to customer support;
Does NOT add to the administrative burden for the employer (including the ability to sync with payroll, help with compliance or employee notification, etc.);
Has flexible plan design, including giving employers the ability to set vesting schedules, matching options, and more;
Has the ability of the plan to scale with a company’s growth;
Will help employees save for the future; and
Will help the employer compete for and retain talent.

Do you have integrations with any payroll providers?

Human Interest works with HRIS and payroll providers to take the hassle out of the day-to-day operations of managing a 401(k) or 403(b) plan. We offer “No-Touch” integrations with 15+ leading payroll providers to eliminate the burden of managing your plan. We sync to your payroll, process contributions, and handle changes in employee contribution rates.

Check here for the most up to date list of payroll integrations with offer.

Do you provide any kind of financial wellness training?

As an SEC-Registered Investment Adviser (RIA), Human Interest provides built-in investment advice for your employees. This level of advice has historically only been available to employees that can afford a financial advisor or wealth manager. Additional financial educational materials are available on our blog and resource hub.

For more information on our investment funds and philosophy can be found here.

Why do small and medium-sized businesses need a 401(k) ?

Offering a retirement plan is a win-win for both business owners and employees. Research shows that when employees are on track financially, they have greater job satisfaction and loyalty to their organization. And for employers, offering a 401(k) is shown to help attract and retain talent. Not to mention, business owners need to save for retirement and offering a 401(k) can open up tax benefits. Businesses starting a plan are eligible for tax credits and those offering matching contributions are also eligible for tax deductions.

For more information, see: Why Small Business Owners Don’t Offer a 401(k), But Why They Should.

How do I set up a new bank account for contributions and 401(k) service fees?

If you need to provide us a new bank account for your plan, you can do so by logging in to the Human Interest dashboard and entering these details in the setup hub.

In order to validate this bank account, we’ll send two micro-deposit transfers to your account. These micro-deposit transfers can take 1-2 business days to appear in your bank account. Once you’ve received these micro-deposits, you’ll need to confirm these amounts in the setup hub. Follow this link to get started.

Currently, we support one bank account for both contributions and 401(k) service fees. However, our product team has received some requests to expand this feature. Let us know your thoughts by emailing [email protected]

What does “fiduciary duty” mean?

Through our subsidiary, Human Interest Advisors, we serve as a plan fiduciary, and you have the option to choose between 3(38) or 3(21) in terms of fiduciary responsibility. According to the US Department of Labor (DOL):

Fiduciaries have important responsibilities and are subject to standards of conduct because they act on behalf of participants in a retirement plan and their beneficiaries. These responsibilities include:

Acting solely in the interest of plan participants and their beneficiaries and with the exclusive purpose of providing benefits to them;
Carrying out their duties prudently;
Following the plan documents (unless inconsistent with ERISA);
Diversifying plan investments; and
Paying only reasonable plan expenses.

The DOL is currently trying to pass legislation mandating that all retirement plan providers must be plan fiduciaries—currently, some estimate that 90% of plan providers are NOT fiduciaries.

What’s the difference between a 403(b) and a 401(k)?

In addition to 401(k)s, Human Interest also offers 403(b) plans. A 403(b) plan is similar to a 401(k), but only available for public education organizations, some non-profit employers, cooperative hospital service organizations, and self-employed ministers in the United States. If your company falls into any one of these categories, we would be happy to assist you in setting up a 403(b).

More information: 403(b) Compared to 401(k): Retirement Plans for Non-Profits.

How can you help me save for retirement?

Human Interest was created to meet the retirement planning needs of today’s small-to-medium businesses (SMBs). We offer affordable, easy-to-use 401(k) and 403(b) retirement plans for the employees at America’s SMBs.

Our “all-in pricing” for employers and employees is a fraction of the cost compared to traditional providers. We get 70-90% of employees in our companies saving for retirement (our participation rate).

How can I reach Human Interest?

If you are already a Human Interest customer with a question, we are here to help. Both employees and employers can give us a call at (855) 622-7824 Monday – Friday, 9 AM to 5 PM Pacific Time or email us at [email protected]

If you’re looking to speak to Sales, you can email [email protected]

How do I do a rollover into a Human Interest 401(k)?

You can initiate a rollover directly from your Human Interest dashboard. When you log into your Human Interest account, click on your name in the upper right-hand corner and in the drop-down menu, select “Rollovers and Distributions.” Next, provide the information under “Rollover Existing Account.”

Once you’ve initiated the rollover with your previous provider and have completed our incoming rollover form, you’re all set! This process can take up to 3-4 weeks from when the check has been sent out. You’ll receive an automatic email from Human Interest once the check has been received and your rollover has been fully processed.

How does a 401(k) or 403(b) work?

Both 401(k) and 403(b) plans are tax-advantaged, employer-sponsored retirement plans. For either type of account, individuals choose how much of their salary to contribute to their plan in a given year (up to a limit determined by the IRS, which is $19,500 in 2020). Employee contributions are deducted from their paycheck and may be made with either pre-tax or post-tax funds. Every payroll, those funds are sent to a recordkeeper, who invests it according to the investment options you select. Visit our blog for more information on either 401(k)s or 403(b)s.

Does my employer have to match?

Employers have the option to match employee contributions but are not required to by law (though there are numerous benefits of doing so). If the employer decides to offer a match, the combined employee-employer contributions cannot exceed $57,000. (Keep in mind that employer contributions are always pre-tax.)

How much can I put in my 401(k)?

It depends on your age. In 2020, employees under age 50 can contribute up to $19,500 of their income to their 401(k). Those 50 years of age and older can contribute an additional $6,500, for a total of $26,000. Employers can also contribute to their employees 401(k)s, but the combined limit between employer and employee contributions cannot exceed $57,000.

What’s the difference between a 403(b) and a 401(k)?

The key difference between 401(k) and 403(b) plans is what type of organization can sponsor them.

401(k)s are typically offered by private, for-profit corporations.
403(b)s are typically offered by nonprofit organizations or government employers.

There are also some structural differences between the two. For example, 403(b) plans are exempt from certain ERISA reulations, like non-discrimination testing, as long as the employer does not make contributions to employee 403(b) accounts.

Visit our blog for more information on the differences between 401(k)s and 403(b)s.

What does fiduciary duty mean?

As defined by the DOL, any retirement advisor or business that operates with “fiduciary duty” is one that is committed to acting in their client’s best interest, i.e., putting their clients’ interests ahead of their own. The fiduciary rule requires that all commissions and fees for retirement planning advice and retirement plans be disclosed clearly in dollar form. It leaves no wiggle room for financial advisors to hide any potential conflict of interest. Human Interest operates with fiduciary duty.

What’s the difference between a Roth 401(k) vs. a traditional 401(k)?

While both are employer-sponsored retirement savings plans, the key difference is when the plan holder receives tax benefits:

Traditional 401(k): An employee contributes funds that are pre-tax. That is, they are taxed upon withdrawal in retirement. In general, the aim is to take advantage of being in a lower tax bracket in retirement.
Roth 401(k): First introduced in 2006, the Roth 401(k) mixes features of a Roth IRA with those of a traditional 401(k) plan. Adding the Roth component means that an employee’s contributions are taxed today — and they’ll avoid paying taxes on future withdrawals. This makes it a suitable plan for those who estimate that their overall income will significantly increase over time and choose to pay taxes on their current income, as opposed to paying taxes on their projected higher income.

With either type of 401(k) plan, your company may match your contribution (if they offer an employer match). For more information.

What’s the difference between an IRA and a 401(k)?

A 401(k) is an employer-sponsored retirement plan that offers tax advantages to its contributors. You can invest the contributions into a portfolio of investment options based on the selections your employer plan makes available. These funds have different risk levels, much like mutual funds. The contributions grow tax-free, and you don’t pay taxes until you start making withdrawals, which you can do after you reach 59 ½ years old. However, some plans allow employers to take loans or make withdrawals loans.

As opposed to a 401(k), IRAs are not linked to an employer, so anyone can open one as long as they are under 70 ½ years old. IRAs have lower contribution limits than 401(k)s, which means that it can take longer to grow your nest egg. There are four types of IRAs (learn more about them here). Like a 401(k), the withdrawal age for IRAs is 59 ½ years old.

What is the SECURE Act?

The “Setting Every Community Up for Retirement Enhancement” Act legislation, better known as the SECURE Act, was passed by the House of Representatives back in July and signed into legislation by the Senate on December 19, 2019.

From increasing access to tax-advantaged accounts and preventing older Americans from outliving their assets, the SECURE Act is one of the most significant pieces of retirement legislation in over 13 years and puts into place numerous provisions affecting employers and employees across the country. For more information.

What is a safe harbor plan?

There are three different “types” of safe harbor 401(k) plans, and two of them also have employer match programs. For more information.

Will I be able to choose what funds my money is invested in?

Yes, if you decide to opt out of our investment advising, you are free to buy and sell funds on our platform. If you want to choose your own funds, you can do so from a list that spans all the major asset classes and risk categories, pre-determined by your employer. However, keep in mind that our investment advising allows all employees to follow the best practices of investing without extra research or work on your part. We will balance your portfolio based on the time-tested investment theories espoused by the world’s leading financial economists: modern portfolio theory, efficient market theory, and the capital asset pricing model.

Can I take out a loan on my 401(k)?

Yes, however it is usually inadvisable and uncommon for people to take out loans from their retirement plan. You can usually get a better rate on loans from almost any other source. Taking out a loan may incur other fees, too. The biggest issue is paying loans back with after-tax dollars, which which some tax experts argue is effectively double taxation (as you pay taxes again once the money is withdrawn from the 401(k)). The government tries to dissuade people from dipping into their nest eggs, just as they try to incentivize contributions into a 401(k). For more information.

Human Interest

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Frequently Asked Questions

Employers

Employees

How long does it take to set up a retirement plan for my company?

How much does a 401(k) or 403(b) cost employers?

How much does a 401(k) or 403(b) cost employees?

How can I reach Human Interest?

What investment services do you provide?

What tax credits are available to employers?

Do I have to provide an employer match?

Why should I offer an employer match?

What is a safe harbor plan?

How can you help my employees save for retirement?

What should I look for in a 401(k) plan and provider?

Do you have integrations with any payroll providers?

Do you provide any kind of financial wellness training?

Why do small and medium-sized businesses need a 401(k) ?

How do I set up a new bank account for contributions and 401(k) service fees?

What does “fiduciary duty” mean?

What’s the difference between a 403(b) and a 401(k)?

How can you help me save for retirement?

How can I reach Human Interest?

How do I do a rollover into a Human Interest 401(k)?

How does a 401(k) or 403(b) work?

Does my employer have to match?

How much can I put in my 401(k)?

What’s the difference between a 403(b) and a 401(k)?

What does fiduciary duty mean?

What’s the difference between a Roth 401(k) vs. a traditional 401(k)?

What’s the difference between an IRA and a 401(k)?

What is the SECURE Act?

What is a safe harbor plan?

Will I be able to choose what funds my money is invested in?

Can I take out a loan on my 401(k)?