Small businesses are getting more options. As more small businesses are expected to start retirement plans, either because of the war for talent, state mandates, or expected tax incentives in SECURE 2.0, banks seem to be more interested in serving smaller and start-up plans.
Huntington Bank has partnered with Pai – targeting plans with less than 50 employees among the 400,000 small businesses they service as clients. JP Morgan, which sold its large market record keeper to Empower is offering a similar service using an outsourced record keeper, as is Bank of America.
There’s a service gap for startup and small businesses unlikely to be covered by RPAs or wealth advisors. Banks are in position to find a niche by selling additional services to current clients and offer banking services to participants. Interestingly, these banks are partnering with other record keepers, not creating their own. For additional information visit www.WealthManagement.com and see this week’s edition of 401k Real Talk for more recent news.
