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 They come in two types: Traditional, in which employees contribute pre-tax money that will be taxed when withdrawn, and Roth, in which employees contribute post-tax money.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.
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 does Lendtable work with a 401(k)?
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 plan. If your application is missing information we need, it will be rejected, but you can work with our team to reapply.
Once you're approved, your dashboard will walk you through the rest of the onboarding process, including how to link your 401(k) account via Plaid so our team can verify your contributions and release your next payout.
You receive monthly payouts from Lendtable.
Your monthly payouts will be direct deposited into your linked bank account. They should equal the amount withheld from your paycheck by your employer throughout the month. If they do not, email your account manager.
If you linked your 401(k) account via Plaid during your onboarding process, our team will be able to verify your contributions without action on your end. If you were unable to link your account, you will have to upload alternative proof of contribution to your dashboard each month.
Valid alternative proof of contribution types
You can upload a PDF or screenshot of your 401(k) account or most recent paystub. Any file type must include:
Most recent contribution date
Amount deducted from most recent paycheck(s) throughout the month
After one year, your contract ends and you move to the repayment stage.
By this time, you will have received your employer match shares, which ensures that you have more money than you started with and enough to pay for the Lendtable service.
Your Lendtable balance will equal the amount Lendtable sent you in direct deposits plus a small percentage of the match profits. This profit-share percentage differs from person to person but will never be more than 20%, and often it will be lower. You should already be aware of this profit-share percentage, as it was detailed in your terms and contract during your onboarding process.
You can pay by withdrawing from your retirement account (for 401(k)+ service) or using a credit card. If your 401(k) account does not allow in-service withdrawals, read here.