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 FINRA SIPC.
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.
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SOURCE Capital One Financial Corporation