At a glance
- Vestwell's platform connects to more than 200 payroll systems and automates contributions, while Morgan Stanley curates and manages the investment menu.
- Advisors and sponsors comparing 401(k) quotes for private-company clients will need to obtain the fee and SECURE 2.0 credit terms separately before making a recommendation.
- The Daily Network reported in October that Morgan Stanley's poll of employers found 93% rank 401(k)s among employees' top five.
Carta launched the Carta 401(k) on Feb. 25, a retirement plan for private companies pairing investment portfolios and fiduciary support from Morgan Stanley's Institutional Consulting business with Vestwell recordkeeping.
Vestwell's platform connects to more than 200 payroll systems and automates contributions, while Morgan Stanley curates and manages the investment menu. Carta also lists SECURE 2.0 tax-credit work as part of the package, but the announcement does not give a fee, a fund lineup or a list of companies that have signed.
Advisors and sponsors comparing 401(k) quotes for private-company clients will need to obtain the fee and SECURE 2.0 credit terms separately before making a recommendation.
The 401(k) follows two earlier Carta agreements with Morgan Stanley: exclusive equity compensation provider for late-stage private companies going public, and preferred wealth manager for founders, executives and employees preparing for liquidity events.
The Daily Network reported in October that Morgan Stanley's poll of employers found 93% rank 401(k)s among employees' top five. A Vestwell survey from the same month found 85% of employees expect employer to offer retirement benefits.
Reported by the Plans & Sponsors desk from NAPA Net, Retirement Capital Daily archive and Retirement Capital Daily archive. Published . Corrections