Without a doubt, fintech firms are using AI and innovative technology in new and exciting ways, but using predictive analytics in retirement plan design, specifically in the area of 401(k) tax planning optimization?
Fintech firm Bidmoni is doing just that, and announced its Predictive Plan Design tool for SEPs, SIMPLEs, 401(k)s, profit sharing plans, cash balance, and non-qualified deferred compensation. It allows financial advisors, plan sponsors, and participants to leverage advanced algorithms and comprehensive calculations to optimize their plan’s design.
“We're thrilled to launch our Predictive Plan Design tool, offering a game-changing solution in the realm of 401k tax planning optimization," Stephen Daigle, CEO of Bidmoni, said. "Our commitment to leveraging technology for financial empowerment remains unwavering, and this tool exemplifies our dedication to providing innovative, data-driven solutions for our clients."
A key feature in the tool is its inclusion of calculations for SECURE 2.0 tax credits.
“Business owners, especially, care about one thing—taxes, they don't like paying them,” Daigle added. “To us, plan design to us is the most powerful part of a 401(k) because it shows a business owner its value. That's what business owners care about.”
It means advisors can save time and scale when developing plans, creating better efficiencies within the practice.
“That was our goal,” Daigle concluded. “We said we’re going to build this. We're going to build this where we can simultaneously automate every possible way these plans can be funded and tell the advisor in seconds and the client the best way to do it from a tax efficiency standpoint. We had version 1.0 which we tested, got a ton of really positive feedback and just tried to dive deeper. There are some very big players looking to license, buy, integrate it. We put a lot of time and a lot of energy, got a lot of critiques, and we think we truly have something revolutionary that just opens up the gate for all these small businesses.”
