Designed Exclusively for Small Businesses, Spark 401k Empowers Business Owners and Employees to Invest for the Future Using Low-Cost, All-ETF Retirement Plans
MCLEAN, Va., Aug. 16, 2016 /PRNewswire/ — Capital One today announced the launch of Spark 401k, providing low-cost, all-ETF 401(k) plans designed to empower business owners and their employees to invest for the future. Spark 401k is the latest addition to Capital One’s small business solutions suite, which includes Spark Business‘ award-winning credit cards, best-in-class banking products, and payments and e-commerce tools.
Spark 401k is designed for businesses with fewer than 100 employees to deliver a straightforward retirement planning experience that offers the benefits available to larger companies. These benefits include the ability to build a retirement nest egg with tax-deferred dollars, reduce business taxes, and recruit and incentivize employees. The new Spark 401k leverages the technology and expertise behind Capital One’s ShareBuilder 401k, which pioneered the all-ETF 401(k) movement beginning in 20051. Spark 401k also provides access to low-cost ETFs that keep investment expenses under one percent, helping employees further grow their nest egg.
“Today, only thirteen percent of small businesses offer a retirement plan2 and while many say they want to provide a plan, they often put it off because they think it will be too expensive, burdensome or complicated,” said Stuart Robertson, president of Capital One Advisors 401k services, which oversees ShareBuilder 401k and Spark 401k. “We designed Spark 401k to make retirement planning easier and more accessible for small businesses. With its online plan management and direct access to licensed 401(k) advisors and customer success managers, Spark 401k can help small business owners plan for the future – for themselves and their employees – while they pursue their primary passion, running their business.”
With small businesses increasingly relying on mobile technology, Spark 401k provides owners a streamlined, digital experience to easily determine which plan best suits their needs. Spark 401k provides three types of 401(k) plans and oversees each plan’s investment fiduciary responsibilities for no additional cost. By providing a 401(k) plan, owners can save for retirement while deferring personal taxes, lowering business taxes, and qualifying for tax credits.
About Spark 401k Spark 401k (a marketing name for Capital One Advisors) provides streamlined, cost-efficient 401(k) retirement plans for tailored for small businesses. Spark 401k offers a suite of easy-to- access services that make it simple for employers and employees to open and manage their retirement plans online at www.spark401k.com. Spark 401k plans provide low-cost investments and model portfolios that simplify investment selection to help them get on track with their retirement goals. Plan sponsors can take advantage of customer success managers and customer care agents to receive assistance in choosing and managing their retirement benefits.
Securities and services are: Not FDIC insured • Not bank guaranteed • May lose value • Not a deposit • Not Insured by any Federal Government Agency
Banking, Credit Card, Auto Finance, and Home Loan products and services are offered by the Capital One family of companies, including Capital One Bank (USA), N.A. and Capital One, N.A., NMLS ID 453156, Members FDIC. Equal Housing Lender.
Securities are offered by Capital One Investing, LLC, a registered broker-dealer and Member FINRASIPC. Advisory services are provided by Capital One Advisors, LLC, an SEC registered investment advisor. Insurance products are offered through Capital One Agency LLC. All are subsidiaries of Capital One Financial Corporation.
All entities are separate but affiliated legal entities of Capital One Financial Corporation, each is responsible for its own products and services
Spark 401k plans range from 27% to 68% less than the industry average at various data points from $50K plan with 6 participants to a $100M plan with 2,000 participants based on 401k Averages Book 2015 Data and Custom Benchmarking report prepared for Capital One Advisors. Cost comparisons are based on plan assets and number of participants and reflect core on‐going 401(k) plan expenses that a company and/or its employees can expect to incur as a percentage of assets with most any 401(k) plan. This includes administration, recordkeeping, tax filing prep documents, plan testing, fund expense ratios, and other investment costs passed on to every participant to service the plan. It does not include unique employee initiated transactions such as loans, distributions or employer transactions such as plan amendments. ShareBuilder401K pricing is based off standard pricing rates for our typical Safe Harbor 401(k).
First time buyers may be eligible to receive up to $1,500 in tax credits over 3 years. If you start a 401(k), and it’s the first for your company, you may qualify for a tax credit of up to $500 for each of the first three years of your plan to offset setup and administration charges for the plan. Here’s how it works. Your business must have had 100 or fewer employees who received at least $5,000 in compensation from you for the preceding year and at least one participant who is a non‐highly compensated employee. The tax credit is equal to 50% of administration and set up charges for your 401(k) with a cap of $500. Please see your tax advisor for information on whether this credit applies to your specific circumstances.
About Capital One Advisors Capital One Advisors, LLC (“COA”) is a Washington Limited Liability Company that is registered as an investment adviser with the SEC. We provide affordable 401(k) investment advisory and ERISA 3(38) services to businesses and offer investment advisory services to retail clients.
1 ShareBuilder 401k (a marketing name for Capital One Advisors, which is a subsidiary of Capital One Financial Corporation), provides all-ETF 401(k) retirement plans for businesses of all sizes. Launched in 2005, ShareBuilder 401k offers a low-cost, index-based approach to 401(k) investing. 2 The 2016 Spark Business Barometer was conducted March 14-29, 2016.