Yes, Betterment LLC serves as a fiduciary to the plan under Section 3(38) of ERISA, and is legally bound to act in the best interest of the plan, its participants, and their beneficiaries. What this means for you as a plan sponsor is that Betterment LLC assumes the responsibility for investing plan assets (i.e., the decision to buy and sell particular securities). As a plan sponsor, you are not liable for Betterment LLC’s acts or omissions, but you are responsible for overseeing aspects of the plan, such as fees and investment oversight on an ongoing basis. Betterment LLC reviews investment managers periodically to choose the best ETFs (or other funds) for investors and participants. Partnering with Betterment on your 401(k) gives you the opportunity to focus on what you know best - your business and your people.
