Betterment at Work Review
by Betterment Holdings Inc.
Betterment at Work is a 401(k) for small and mid-market businesses with fiduciary services, compliance testing, expert-built portfolios and 350+ payroll integrations. Essential costs $100 a month billed annually plus $5 per participant.
- Company size
- Small businesses, mid-market companies
- Pricing model
- Base fee + per employee
- Integrations
- 350
- Deployment
- Cloud
Best for
- Small and mid-market employers that want a published 401(k) price
- Employers that want 3(16) and 3(38) fiduciary support on the entry plan
- Plans that want automatic enrollment and auto-escalation
Not ideal for
- Employers that want month-to-month base fees (the base fee is billed annually)
- Buyers who need a published ISO 27001 certification
How we evaluated Betterment at Work
This review rests on 16 facts checked against Betterment at Work’s official pricing pages and documentation, most recently on . We did not test the product hands-on: the score and the pros and cons use only those verified facts, as our methodology explains, and third-party ratings are quoted, never scored.
Our verdict
Betterment at Work is the 401(k) for small and mid-market businesses from Betterment, based in New York, with 3(16) and 3(38) fiduciary services, compliance testing and 350+ payroll integrations. Essential costs $100 a month billed annually plus $5 per participant and a 0.25% advisory fee; Flagship is quoted.
Strengths
Fiduciary support included
Essential includes 3(38) and 3(16) fiduciary services with administrative, compliance and investment support.
Evidence: Fiduciary services: Yes
Compliance work
Yearly 410(b), ADP/ACP, limit and top-heavy testing, plus Form 5500 preparation.
Evidence: Compliance testing: Yes
Payroll coverage
Integrates with 350+ payroll providers to track eligibility and automate contributions.
Evidence: Native integrations: 350
Security reports
SOC 2 Type II and SOC 1 Type II reports are available to clients.
Evidence: SOC 2 Type II: Yes
Weaknesses
Annual base fee
The base fee is billed each calendar year and is not prorated.
Evidence: Contract term: Annual
One-time fees
A $500 implementation fee for new plans and $1,000 for conversions.
Evidence: Implementation fee: $500 for new plans, $1,000 for conversion plans
Asset-based advisory fee
Participants pay a 0.25% annual advisory fee.
Evidence: Extra costs: 0.25% annual advisory fee on participant assets, Additional fees or hourly charges for some compliance consulting services, Financial Coaching as a paid add-on (Pro)
Price at a glance
Starting base fee
$100/mo
Starting price per employee
$5/employee/mo
Pricing model
Base fee + per employee
Price transparency
Partly published
Contract term
Annual
Betterment at Work cost at 10 to 100 employees
- Essential$100/mo base + $5/employee/mo
- Pro$150/mo base + $7/employee/mo
| Employees | Essential | Pro |
|---|---|---|
| 10 | $150/mo | $220/mo |
| 25 | $225/mo | $325/mo |
| 50 | $350/mo | $500/mo |
| 100 | $600/mo | $850/mo |
Monthly list price before discounts, add-ons and taxes, from the published price model of each plan.
Quick answers
- How much does Betterment at Work cost?
- Essential is $100 a month billed annually ($1,200) plus $5 per participant a month; Pro is $150 plus $7. Both add a 0.25% advisory fee on participant assets; Flagship is quoted.Based on Extra costs: 0.25% annual advisory fee on participant assets, Additional fees or hourly charges for some compliance consulting services, Financial Coaching as a paid add-on (Pro)
- Is there a setup fee?
- Yes. A one-time implementation fee of $500 for new plans and $1,000 for conversion plans.Based on Implementation fee: $500 for new plans, $1,000 for conversion plans
- Does Betterment at Work act as a fiduciary?
- Yes. All plans list 3(38) and 3(16) fiduciary services with administrative, compliance and investment support.Based on Fiduciary services: Yes
- How many payroll providers does Betterment integrate with?
- More than 350, including Gusto and TriNet; Apex, Paychex and UltiPro are third-party-facilitated.Based on Native integrations: 350
Coverage of core 401(k) providers capabilities
Each core capability we evaluate in 401(k) Providers, checked against Betterment at Work’s own documentation. “Not verified yet” means we have not confirmed it either way, not that it is missing.
8 verified of 10 core capabilities
401(k) Providers
- Plan design and document
- Participant recordkeeping
- Payroll integration
- Investment menu and default investment
- Fiduciary services
- Compliance testing
- Form 5500 support
- Automatic enrollment
- Participant notices and education · not verified yet
- Fee disclosure · not verified yet
Specifications
Product
- Modules
- Traditional 401(k) and Roth 401(k), Safe Harbor 401(k), Automatic enrollment, Profit-sharing, 529 Education Savings, Financial Coaching
- Mobile apps
- Yes
Betterment at Work integrations
4 integrations we documented, by how they connect. Betterment at Work reports 350 native integrations in total.
Betterment at Work integration coverage
The 4 apps that 401(k) providers products document most often, and whether Betterment at Work documents each.
2 of the 4 most-connected apps documented by Betterment at Work; median of the 5 products compared: 2
- Gusto · documented by 3 of 5
- Paylocity · documented by 3 of 5
- Paychex · documented by 2 of 5
- QuickBooks · documented by 2 of 5
Integrations each vendor documents (native, marketplace, Zapier or API), 5 live 401(k) providers products. Not documented does not mean not possible.
Where it ranks
- #2 of 3 scored401(k) Providers
- #3 of 3 scored401(k) Providers for Mid-Sized Companies
- #3 of 3 scored401(k) Providers for Small Business
Betterment at Work alternatives
- Fidelity Workplace Investing100% similar
- Vanguard Workplace Solutions100% similar
- Principal Financial Group90% similar
- Empower70% similar
Implementation and support
- Implementation fee
- $500 for new plans, $1,000 for conversion plans
- Support channels
- Plan Support Team, Dedicated Client Success Manager, Employee support by call, email or chat, Dedicated onboarding specialist
Betterment at Work: frequently asked questions
Is Betterment at Work SOC 2 certified?
Betterment at Work provides clients a SOC 2 Type II report and a SOC 1 Type II report.
What do participants pay with Betterment at Work?
Participants pay a 0.25% annual advisory fee on their assets; some compliance consulting services carry extra fees or hourly charges.
What plan types does Betterment at Work offer?
Traditional and Roth 401(k), Safe Harbor 401(k) and profit-sharing, with automatic enrollment; 529 education savings and financial coaching are also offered.
Does Betterment at Work handle compliance testing and the Form 5500?
Yes. It lists annual compliance testing and a signature-ready Form 5500, backed by its Hassle-Free Compliance Guarantee.
Which 401(k) types does Betterment at Work offer?
Traditional and Roth 401(k), Safe Harbor 401(k) and profit-sharing, with automatic enrollment; 529 education savings and financial coaching are also offered.
What is Betterment at Work used for?
Betterment at Work is a 401(k) providers product built for small businesses and mid-market companies. Its modules include Traditional 401 and Roth 401, Safe Harbor 401, Automatic enrollment, Profit-sharing, and 2 more.
What are the best alternatives to Betterment at Work?
In our 401(k) providers ranking, the highest-scored products other than Betterment at Work are Human Interest and Fidelity Workplace Investing. Compared side by side, by reason to switch: Betterment at Work alternatives.
What are the pros and cons of Betterment at Work?
Strengths documented on the vendor’s own pages: fiduciary support included, compliance work, and payroll coverage. It is less suited to employers that want month-to-month base fees (the base fee is billed annually) and buyers who need a published ISO 27001 certification.
Does Betterment at Work have a mobile app?
Yes. Betterment at Work confirms a mobile app for employees and admins.
Is Betterment at Work good for small businesses?
Betterment at Work lists small businesses among the company sizes it is built for (small businesses and mid-market companies); for 10 employees its lowest published plan comes to $150 a month. It ranks #3 of 3 in our 401(k) providers for small businesses.
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