One of Lendtable's main offerings is cash advances for company-sponsored retirement accounts, including 401(k)s, 403(b)s, and TSPs.
We call this our 401(k)+ service.
What is a company-sponsored retirement account?
A company-sponsored retirement account is a type of retirement savings account that employers offer to their employees. Types of company-sponsored retirement accounts include 401(k)s, 403(b)s, and TSPs (Thrift Savings Plans).
Generally, 401(k)s are the most common type of plan. They come in two types: Traditional, in which employees contribute pre-tax money that will be taxed when withdrawn, and Roth, in which employees contribute post-tax money.
Company-sponsored retirement accounts are distinct from individual retirement accounts, like Roth or Traditional IRAs, which anyone can open and contribute to, regardless of their employment status.
What are the benefits of 401(k)s?
Like other types of company-sponsored retirement accounts, 401(k)s were created to incentivize them to save for retirement, even when it might be decades away.
The funds kept in a 401(k) account also compound value, so the earlier you contribute, the more money you will have when you go to withdraw for retirement.
Because working a full-time job becomes increasingly physically difficult as we age—and because other expenses can add up later in life, like medical expenses, college payments for children and grandchildren, and so on—building a robust retirement fund throughout your life is crucial to life-long financial freedom.
In addition to being a reliable way to build a retirement nest egg, 401(k)s specifically have the added bonus of employer matching. While matches are not offered by every 401(k) program, they are a common part of company-sponsored retirement accounts.
What is an employer match, and how does it work with 401(k)s?
A 401(k) match is a common employer benefit program in which employers will match an employee's contributions to their retirement account.
An employer match is essentially "free money," and a powerful incentive for employees to contribute to their retirement funds.
Consider this case of a traditional 401(k): If an employee contributes $6,000 to their 401(k) throughout a year, their employer will match that contribution, adding another $6,000 to the employee's 401(k) for a total of $12,000.
How do I know if I have a 401(k), and where can I find my policy?
Your benefits provider or HR department will know if your company offers a 401(k), as well as where you would find your policy. If you're looking for your policy, check your employee benefits portal: Your 401(k) policy will most likely be saved there.
The most comprehensive policy document is often called your Plan Summary Description. This can be found within your third party retirement account provider login.
How do I apply for Lendtable's 401(k)+ service?
Check out what you need to apply in our related support article, What do I need to apply for Lendtable?
Sign up, get approved, and complete the onboarding process.
When you sign up, we will ask for your 401(k) policy so our team can go through the details and note the important dates, so you don't have to. You'll also create a password so you can log into your Lendtable dashboard.
If your uploads include all the necessary information, our team will approve your application, and you'll get an email from your dedicated account manager with details on your unique 401(k) plan. If your application is missing information we need, it will be rejected, but you can work with our team to reapply.
Link your payment information & Sign your contract
Once you've linked your accounts to pay your $10 platform fee and receive your semi-monthly Lendtable payouts, you'll be prompted to sign your contract.
Ensure you set your contribution to the maximum percentage your employer will match.
You must do this as soon as you sign your Lendtable contract to ensure that your payouts will be released on time. Our team cannot do this step for you!
Begin receiving semi-monthly payouts from Lendtable.
The portion of your paycheck that will go toward your 401(k) will be withheld automatically.
Your monthly payouts will be direct deposited into your linked bank account. They should equal the post-tax amount withheld from your paycheck throughout the month.
Each month, verify your contributions.
This confirmation can be automatic by linking your retirement account with Plaid or your most recent paystub that shows your deductions. We cannot release your next payout until you confirm your contributions.
Regardless of if your pay periods occur biweekly, bimonthly, or monthly, we will still release payouts on a semi-monthly basis. Our team will do the math to convert your contribution amounts per pay period to a semi-monthly sum.
You leave your employer and pay your balance.
Once you leave your employer, you'll be able to access your 401(k) funds and pay your Lendtable balance. We'll share resources at that time to make this process as clear as possible.
Once you begin employment with your next employer, make sure to re-enroll with their unique plan to get a head start on their employer match if they offer one!