Human Interest Review 2022 – Top 10 Employee Retirement Plans
To stay competitive, small businesses are now required to offer their employees retirement plans. However, many employers doubt if they can afford that because the market is flooded with expensive retirement plans. However, there are also low-cost plans that small business owners can adopt.
Human interest is among the affordable retirement-investment company available in the market. This investment plan allows the employees of these small companies to save for their retirement. The company’s retirement plan maintains affordable prices by using a digital solution for enrolling and managing plans.
Many other tools and features complement these affordable plans. This company’s software also allows it to be integrated with over 100 payroll providers. Using this software enables you achieve automated administration and record keeping.
Human Interest
Human interest is a good company that specializes in streamlining online offerings. This company allows employers to offer their employees easy to set up and administer retirement plans.
This excellent 401(K) provider company ranks in transparency and affordability. In addition to these, this company also deals with recordkeeping and plan administration and easily integrates with the payroll of various companies. At a small fee, you can also access the fiduciary plan features.
Humana interest can be recommended to small employers that want safe harbors plans for easy management, small churches and foundations, and tech-savvy companies with few employees.
However, the company is not recommended to self-employed entrepreneurs needing a self-employed 401(K), business owners who contract independent contractors and consultants, and large employers with more than 50 employees.
- Affordability
- The retirement benefit for employees' plans costs as low as $120 per month with an additional $4 monthly payment per user.
- Flexibility
- This retirement fund management system lets businesses have the freedom to choose from their different plans. The plans come in with different features and prices.
- Education
- The human-interest software model has built-in investment advice that are free, plus an automated rebalancing portfolio for employees.
- Difficult Support system connection
- Some of the users of our services have raised issues of facing challenges in connecting to the customer support team
- Limited customer team capacity
- Even upon contacting our customer care team, the team is not authorized to make changes to your account.
- IRA options
- This software does not support IRA options.
About Company
Human-interest is a startup founded by Roger Lee and Paul Sawaya. This company includes outside investors like Glynn Capital, US Venture Partners, SoftBank, Wing Venture Capital, NewView Capital, Slow Capital, Uncork Capital, and Susa Ventures, among many others.
This excellent 401 (K) provider allows your employees access to a number of benefit plans. Customers can access built-in investment advising, automated portfolio rebalancing, change contributions and check balances, easily create an account and begin a retirement saving plan, access low-cost funds from risk categories, manage asset class, and receive email and phone support tools.
This retirement-saving plan company has a model designed specifically to provide built-in education for employees on investments, handle paperwork, compliance, and administration tasks, and create affordable retirement plans for employees.
Services
This company offers many services and features to entrepreneurs of small businesses, which include:
- Fiduciary Support
This company is legally and ethically bonded to manage employees’ finances trusted to them by their employers. The company adopts the roles of a custodian, plan administrator ERISA 3(38) investment manager, and record keeper on behalf of your company.
- Payroll Integration
This company software can integrate with many reputable payroll systems that help streamline deductions, plan enrollment, and records.
- Investment Options
The investment feature allows a healthy interaction between the human interest team and their clients to enable the creation of a low-cost mutual funds portfolio. The investment option feature also gives the users flexibility to choose how to manage their funds. This plan is rebalanced quarterly.
The subscribers of this plan have access to every index and mutual fund in the market, like Dimensional Fund Advisors, Vanguard, Charles Schwab, and BlackRock. Some of the types of investments offered by this company include:
̶ Bond mutual funds.
̶ Stock mutual funds.
̶ International mutual funds.
̶ An FDIC-insured cash deposit account.
̶ Real estate funds.
- Fund Research Tools
This software allows subscribed users to view the ETF roster and guide them in managing their portfolios on the company’s website. A Morningstar profile containing information about the historical performance, funds strategy, asset allocation, and other details of each fund that is linked to it.
The company also offers information to educate users on how to invest in the company’s learning website. This rich information is important when making investment choices.
- Advisory Services
The company works closely with globally recognized financial advisors to help develop customized retirement plans that best suit its clients.
- Reporting
This employee’s retirement scheme plan adequately prepares all essential documents for its clients. All the forms and disclosures are handled electronically, and clients don’t have much responsibility in handling the reports.
- Loans
Clients who subscribe to this retirement benefit plan can withdraw hardship allowance and get access to swift loans. These benefits are found by default in the 401(K) plans.
- Mobile App
The company also offers a mobile app to its clients. The app offers clients a simple plan management ability and easy enrollment ability.
- RS documents
Business owners can make their tax preparation process easy using the two main plans, complete and concierge plan. These two plans dramatically lower the risk of missed deadlines by reducing company paperwork. The software automatically prepares, signs, and files the IRS forms based on the set settings.
Plans And Pricing
This company offers several retirement plans at affordable pricing. Each plan has its unique regulations and rules as directed by the IRS. There are three main pricing tiers available to customers. These include:
- Essentials
This is the company’s basic plan that charges a monthly base fee of $120 and an additional monthly fee of $4 per eligible employee. This basic plan includes services like automated record keeping and administration and the ability to integrate the software with many payroll providers.
In this plan, employees can customize the plan to fit their needs. Customization in this essential plan will add profit-sharing plans, safe harbor plans, 403(b) plans, and Roth and traditional 401(K) plans.
Customers in the essential plan are enabled with the ability for automatic enrolment, design vesting schedules, employer matching contributions, and plan eligibility.
- Complete
The complete plan calls for a monthly base fee of $150 and an additional $6 monthly payment for each eligible employee. This plan offers customers all the features contained in the Essential plan.
In addition to those features, customers are also allowed access to advances using the Complete plan. This option allows the software to take up the role for you and be your 3(16) fiduciary and a plan administrator. This complete plan has a tax support feature that allows the software to sign and file IRS documents on your behalf.
- Concierge
The concierge plan requires a basic fee payment of $180 each month and an additional $8 per month for each eligible user. This is the most comprehensive retirement plan that the system has to offer. With this plan, the employees have access to all the other features contained in the essential and complete plan.
In addition, the concierge plan also gives its users a dedicated account management feature. This feature helps streamline the administration features by making it easier to provide retirement benefits to the employees.
Account Types
This software offers an array of retirement plans for different account types. However, IRS dictates that each plan has its own rules and regulations. Here are some of the account types.
- Traditional 401(K)
This 401(K) plan allows employers to choose whether to accept or decline the matching of pretax deductions.
- Roth 401(K)
This account type allows employers to make after-tax contributions, distribution, and grow tax-free.
- Safe harbor 401(K)
The safe harbor 401(K) plans match small business owners’ provisions. This plan allows business owners to maximize their yearly contributions.
- 403(b)
Most non-profits and government agencies mostly opt for this plan. However, the plan can benefit philanthropic organizations and small churches.
- Profit-sharing
401(K) yearly contributions have a portion of it coming from company profit-sharing. This is usually at the discretion of the business owner.
Frequently Asked Questions
What Is An Eligible Employee?
We only bill eligible employees. Eligible employees are those on a payroll and work for roughly 20+ hours each week.
What Is A 3(16) Fiduciary, And Why Is It Important?
Employers often hire a service provider to handle the administration of a 401K. The fiduciary service provider will handle this time-consuming task on your behalf, including:
̶ Handling all the processes of setting up and managing as per the regulations of ERISA.
̶ Signing and submitting required government filings, including the 5500 form.
̶ Ensuring the communications of employees.
How And When Can I Upgrade My Company’s Plan?
We allow you the freedom of choosing from any plan that fits you. It is also within our providence to allow you to upgrade your plans. Reach out to our customer service desk for assistance and further details.
How Long Does It Take To Set Up A Retirement Plan For My Company?
Our website lets plan administrators/employers set up a retirement plan within 125 minutes. All interactions will be through electronic documents to ensure a fast, safe, and reliable service. eSigning is mandatory!
How Much Does A 401(K) Or 403(B) Cost Employers?
Pricing for the human-interest employer plans is affordable. The cheapest plan is at a base fee of $120 monthly plus an additional monthly payment of $4 for each employee. All the first-time subscribers of our plans qualify for the tax credits.
However, if you are an existing plan holder/subscriber, you can contact us to make arrangements for a deconversion fee to save money.
How Can I Reach The Company?
If you need assistance contacting us, feel free to schedule a call through the following platforms
- Sales
We have a well-dedicated sales team that is ready to serve your needs any time of day. You can call the sales team at 877 475-0179. This line is open Monday-Friday, 9 am to 8 pm ET or 6 am to 5 pm PT.
- Support
Anyone seeking any other kind of assistance or with questions about our services, reach us via email through support@humaninterest.com. You can also call us at 855 622-7824
What Investment Service Do You Provide?
Human-interest ensures access to funds from each risk category and main asset class to all employees and employers. The asset class and risk categories to benefit from include Dimensional Fund Advisor, Vanguard, and TIAA-CREF
As part of our services, we also offer automated investment recommendations based on the responses you give to the questions we prompt you with. However, we also allow employees to choose to manage their funds. Flexibility is our culture.
Some of the digital solutions we provide are: automatic rebalance, doing away with hidden fees, and education to allow global diversification of employees.
What Tax Credits Are Available To Employers?
All the businesses that are starting on any of the retirement plans like 401(K) are eligible for tax credits as follows:
The tax credit cost for the startup retirement plan.
This plan allows eligible employers a maximum of three years to claim up to $5,000 per year, a discount of 50% on their necessary and ordinary startup costs. You can choose to claim the credit a year prior to the effective commencement of the tax plan year. It is worth noting that any expenses employers incurred to educate their employees concerning the plan are eligible.
With an auto-enroll feature, new and existing 401(K) plan subscribers receive a tax credit. This add-on tax credit reward is valued at $500 per year for a maximum of three years.
Why Should I Offer An Employer Match?
Employers are also given tax deductions for contributing to their employees’ retirement accounts. On top of this, the employer match, a recruitment tool, offers the best platform to locate, attract and recruit the best minds in the field.
Do I Have To Provide An Employer Match?
It is not mandatory for the employer to provide a match. However, statistics show that many do provide a match. Matching is very useful in the hiring and retention of the best employees. This company has plans that offer employer matches. Employers who offer an employer match attract great tax incentives.
What Is A Safe Harbor Plan?
A safe harbor plan is a subsidiary of the tax-deductible 401(K) plan. This plan ensures their employer gives employees a pre-determined contribution. These contributions give some annual nondiscrimination tests an automatic pass to the employees.
The safe harbor employer contributions are mandatory and can take the form of an enhanced match, a non-elective contribution, or a basic match, depending on the design of the plan.
The vesting of the safe harbor contributions should be done immediately and to completion, unless combined with QACA. QACA is a specific automatic enrollment provision that allows the contributions to be subjected to a vesting schedule of two years.
How Can You Help My Employees Save For Retirement?
We provide affordable plans and an easily accessible platform that offer all employees an opportunity to save. Majority of the employees having access to our platform choose to save for retirement under the human-interest 401(K).
We have a high participation rate of employees saving with us because of the flexibility of our features in each plan. Our platforms also offer education to both employees and employers about retirement saving plans.
What Should I Look For In A 401(K) Plan And Provider?
It is very important for employers and employees to find a retirement saving plan that works best for them. Here is a list of the feature that should be included in the best retirement saving plan. The plan should:
̶ Be easy to use for the employees and employer
̶ Be affordable and with no hidden charges
̶ Come with essential tools to guide tools like financial wellness education, customer support, and reliable investment education tools.
̶ Not add administrative burden to the employer adopting it. The plan should be able to help with compliance, give employee notification, and the ability to sync with payroll.
̶ Have flexible plan designs allowing employees matching options and the ability to set their vesting schedules.
̶ Have plans that can grow with the business.
̶ Give employees a perfect retirement saving platform.
̶ Allows employers to retain and compete for top talent in the market.
Is the company right for me?
Human interest is a dedicated online employment-retirement provider focusing on a wide service area. This company provides easy-to-use 401(K) plans that are cost-effective for small businesses.
Small businesses who adopt this retirement-saving company enjoy saving plans that cost as low as $120 monthly base fee with a small additional fee of $4 per month per employee. You get access to administrative tools, full recordkeeping, and smooth payroll integration tools at affordable costs.
Your business will benefit significantly from the human-interest company software through ERISA bond procurement, Plan administrator & fiduciary, and IRS documents signing and filling capabilities.
