Betterment's new 401(k) platform is officially open for business. This announcement is a bit of a PR stunt as the platform already has 50 plan sponsors onboard. Betterment for Business allows participants to invest in a globally diversified portfolio of index-tracking ETFs.
Retirement plan participants have been using the platform since late December, Cynthia Loh, general manager of the new platform, told ThinkAdvisor on Monday. “We announced our product in September and spent the quarter building it out,” she said. She added, “Without any formal sales effort, [we] were able to get the set of first 50 charter customers on board. We actually launched the platform with these customers with the first payroll in January. So participants actually got access to their 401(k)s with Betterment in late December.” Betterment also announced Tom Clark and Ray Kanner as the first two members to the plan’s advisory board.