Icon’s 2022 small business survey found that 92% of employees contributing to a 401k want an additional tax-advantaged way to save for the future. That means to remain competitive as an employer, you must provide a comprehensive benefits package that enables all of your workers, from W2 to 1099, a way to achieve financial security beyond traditional offerings. Now, that’s possible with Icon’s Companion Plan.
What is Icon Companion?
Icon Companion is the new, smart way to help your employees build financial security in addition to their 401k plan. It’s easy to set up, integrates with payroll, and is a fraction of the cost of a 401k. Why? Because Icon leverages technology to automate administrative work and keep costs low, allowing us to pass those savings on to our customers.
How Does it Work?
Icon’s Companion Plan works similarly to your 401k in that contributions are automatically deducted from worker’s paychecks and invested in a retirement account.
There are some big advantages with Icon: no federal reporting requirement, no discrimination testing, and no rebalancing needed because it’s set up as a smart, online payroll IRA. All employers need to do is provide payroll information and approve their employees’ elections. Icon handles the rest.
In fact, Icon is a turnkey plan that includes full-service recordkeeping, employee onboarding, portfolio management, and compliance. And because it’s portable, you’ll never have an orphaned account. When an employee leaves the company, they retain access to their Icon account and can continue saving. No rollovers needed.
What are its Benefits?
Employers gain a cost-effective recruitment and retainment tool that doesn’t just sound good, it actually provides employees with a real benefit. Icon’s Companion Plan can be offered to 1099 workers, so if you’re a company that relies on independent contractors, it can help you keep this valuable talent happy. You’re also helping your employees reach financial goals and security, which can lower financial stress, leading to happier, more productive workers.
Employees gain another tax-advantaged way to save for their financial futures that can help them build financial security. Our low-cost portfolios are tailored to the individual employee and easy to manage from the dashboard. Icon’s portability feature is also a huge benefit because employees will never lose access to their account nor will they have to complete a confusing or expensive rollover.
Icon’s Companion Plan is an easy, cost-effective way to stay competitive in a tight labor market while providing your employees with a retirement plan that is a true benefit. And it helps all your employees (W2 and 1099) to become more financially secure so they’re less likely to experience financial-related stress, leading to a happier, more productive workforce. Icon’s Companion Plan is the retirement plan for the modern workforce.