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SEATTLE, May 3, 2021 /PRNewswire/ -- While business owners have had a lot of things to worry about over the past year, their 401(k)s haven't been one of them. In fact, 401(k)s have not only recovered and gone on to perform incredibly well over the past year, but also provided much-needed relief in the form of a reduced taxes, protection of 401(k) retirement savings during bankruptcy, and the ability to borrow money from balances without penalty.

401(k)s Have Been Rare Bright Spot During First Year of Pandemic, Provided Businesses with Growing Balances, Tax Breaks

To help call out these important benefits, and help more businesses start an affordable plan, ShareBuilder 401k is waiving set-up pricing on all its 401(k) plans May 3 - 21 -- charges that 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, companies with 1-100 employees can receive up to $5,000 in tax credits for plan costs when they start their first plan each year 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," said Stuart Robertson, President and CEO of ShareBuilder 401k. "And there are providers like us that make it simple and low-cost to offer benefits no matter the size of a business."

Key Benefits of 401(k) During the First Year of the Pandemic

Between April 2020 and March 2021, 401(k)s provided businesses with relief in the form of:

For Most 401(k) Participants, Notably Increased Balances: Especially for those invested in stock market options such as the S&P 500, small cap, and/or technology. The past 12 months generated amazing returns ranging from 56 to 95 percent for these indexes. While there are no guarantees with the markets (average equity historical returns are approximately 10 percent), this past year illustrates how a down market can swiftly move to an upmarket (and, of course, vice versa).

Penalty-Free Access to Loans: 401(k)s offer penalty-free loan options.  Generally, this is 50 percent of your vested balance up to $50,000.  During 2020, The CARES Act gave Americans the option to make a withdrawal of up to $100,000 via a loan from their 401(k)s without penalty.

Protections During Bankruptcy: Federal law protects most retirement plans from creditors when filing for bankruptcy.

Reduced Tax Bills: Businesses that were able to continue making tax-deferred contributions to their 401(k) plans also benefitted from a smaller annual tax bill in 2020.

In the United States, it is estimated that less than ten percent of businesses with 1-100 employees have a 401(k), with most business owners citing they thought their business was too small or that plans may be expensive as top reasons for not starting a plan. ShareBuilder 401k is focused on solving this problem by making it easy and affordable for any size business to start saving for retirement including the self-employed.

More information on ShareBuilder 401k's free set-up promotion can be viewed online at www.sharebuilder401k.com.

About ShareBuilder 401k

ShareBuilder 401k is a leading digital 401(k) provider specializing in low-cost, all-ETF retirement products and resources for small- to mid-sized companies, including owner-only businesses. Founded in 2005, and now serving more than 6,500 businesses across the US, ShareBuilder 401k is a pioneer of the index-based 401(k), digital quoting and purchasing of retirement plans, and providing investment management (ERISA 3(38)) services for every client's fund roster. ShareBuilder 401k is committed to further expanding access to retirement plans and leading more Americans to save through cutting-edge technology, low costs and quality education and support.

FOR MORE INFORMATION: Dan Branley, dbranley@launchcmus.com , 206.914.1231

SOURCE ShareBuilder 401k

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