JPMorgan Chase Launches 401(k) Solution For SMBs

J.P. Morgan Chase has announced a new program called Everyday 401K by J.P. Morgan to help smaller clients prepare for retirement, a press release says.

Leading retirement solutions provider SS&C Technologies will be the underlying record keeper for the project.

The program lets small business owners set up 401(k) plans in a streamlined, easy manner by either using one of the bank’s pre-set solutions or by using a custom plan from the bank’s efforts. The plans start around $75 per month and $5 per participant per month.

The rollout of this program comes after the bank’s own research revealed that around 85 percent of small business owners are confident that they’ll survive the current economic crisis.

The survey also found that over a third of small business owners plan to offer a 401(k) in the next year and a bit under half, or 49 percent, currently offer a 401(k) plan, while the biggest motivating factor for small businesses to offer a 401(k) was to retain employees and attract new ones.

And, the survey found that the main reason a 401(k) wasn’t offered was due to low revenues. Almost a quarter of respondents also believed administration was too expensive.

Chairman and CEO Jamie Dimon said the bank was “firmly committed to driving stronger retirement outcomes for all Americans, particularly as businesses and individuals grapple with this challenging economic environment.”

“By leveraging capabilities across J.P. Morgan Asset Management and Chase, we are uniquely positioned to support small businesses with solutions such as Everyday 401(k),” he said, according to the release.

J.P. Morgan & Chase aimed to help via lending in the early days of the pandemic, having $26 billion in small business relief applications set up for Congress’ approval of more Paycheck Protection Program (PPP) funds.

Tony Wimmer, head of data analytics for J.P. Morgan Wholesale Payments, told PYMNTS recently that the data available from payment transactions needs to be transformed to get the best use out of it for insights.