Honest Dollar won the innovation prize called ReleaseIt at SWSX in Austin last year. This year the Austin-based tech startup won something even better: an offer it couldn’t refuse from investment giant Goldman Sachs. Goldman announced it will buy Honest Dollar for an undisclosed amount. Honest Dollar offers a tech-based solution for retirement savings geared toward small companies and the self-employed — who often can’t get access to comparable packages.
Honest Dollar promises employers they can complete sign-up for the service in 90 seconds. Employees can get it done in 60 seconds. Honest Dollar explains its proposition: “The Basic plan allows you to offer your employees access to individual IRAs. Depending on qualification questions from each individual the user may be offered either a Traditional IRA or Roth IRA. Employees are solely responsible for contributions into their own plans, and there is no employer contribution.” A Flexible Plan is also available that allows employers to define employees for an employer-sponsored SEP IRA. Employers can pay as little as $96 per year per employee to offer the accounts.
