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ShareBuilder Expands Retirement-Savings Options with First ETF-Based Roth 401(k) Plan

Plan Provides a Powerful New Retirement Benefit for America's Small Businesses

BELLEVUE, WA — ShareBuilder Corporation today announced that it has expanded its retirement-savings options for small businesses and self-employed workers with the addition of the ShareBuilder Roth 401(k) plan. ShareBuilder 401(k) customers can select to contribute their retirement savings into a Roth 401(k). This will be effective as of October 1. Introduced to investors for the first time on January 1, 2006, this plan allows Americans to fund their retirement with after-tax money and enables withdrawals taken after the age of 59½ to be tax-free.

With the Roth 401(k), ShareBuilder once again leads the way in providing America's small businesses with an innovative retirement savings vehicle that utilizes market efficient Exchange-Traded Fund (ETF) investments. The Roth 401(k) is expected to be most beneficial to young workers who will increase their earnings significantly over their careers and in so doing graduate to higher tax rates. The Roth 401(k) also benefits those who are at least 10 years away from retirement and who anticipate U.S. tax rates to rise. Both groups see an advantage to lock in today's tax rates. Some workers also find it appealing that the Roth 401(k) offers a means to pass on savings to heirs tax-free.

In a report released last month by the human consulting firm Hewitt Associates, approximately 14 percent of participants in their 20s elected the Roth 401(k) when it was available, and nearly a quarter (24.7 percent) of employees who were newly enrolling in the 401(k) plan chose the Roth 401(k) option. Newer employees are often more inclined to seriously consider new retirement plan alternatives than are existing employees who have already established accounts with their company.

"We are constantly in search of new ways to help America's small businesses afford high quality, full-featured 401(k)s," said Stephan Roche, Vice President and General Manager of the ShareBuilder Small Business Group. "401(k) plans are simply the best way for employees to invest for the long-term and prepare for retirement. Adding the ShareBuilder Roth 401(k) is a natural extension of our innovative ETF-based 401(k) product line. We will continue to create breakthrough investment vehicles that provide small business owners access to the very best retirement savings plans."

ShareBuilder 401(k) Designed Exclusively for Small Businesses

Launched last year, the ShareBuilder 401(k) is designed especially for businesses with fewer than 25 employees. These plans are designed to minimize costs and reduce the hassles of traditional 401(k) plan administration. They feature low, one-time set-up fees, and a flat monthly administration fee based on the number of employees who choose to participate. ShareBuilder offers 401(k) plans that cost $15 per month for the self-employed and cap out at just $200 per month for companies with 51 or more participants. There is only a 0.65 percent annual investment management fee, which is well below the industry average.

ShareBuilder 401(k) plans bring together the best in online and offline technologies that deliver on-demand information and customer support, making it easy to use, simple to administer, and affordable for small businesses. The ShareBuilder 401(k) offers straightforward diversified portfolios of ETFs. These particular index funds are market efficient investment vehicles which help to make them well suited for retirement investing. ShareBuilder offers ETFs with no commission fees for purchasing or exchanging within a 401(k) account, a first for the 401(k) industry. The low-expense ratios mean that investors have the potential to earn more on their investments over time.

For more information on the ShareBuilder 401(k) and benefits of a ShareBuilder Roth 401(k), as well as information on ETFs including a prospectus, visit

About ShareBuilder

ShareBuilder ( is an online brokerage designed to make investing in the stock market simple and affordable for both beginning and experienced investors. The company vision is to increase the personal savings rate of the average American by helping people build and manage wealth over the long term. Customers pay low fees on individual transactions, have no account or investment minimums and can choose from three automatic, dollar-based investing programs.

As a natural extension of its core business, ShareBuilder recently launched a simple, full-featured and affordable 401(k) plan for small business owners with fewer than 25 employees ( The ShareBuilder 401(k) is 100 percent online, which makes it easy for employers to implement and painless for employees to manage.

Media Contact
Stuart Robertson, ShareBuilder Advisors, LLC

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