Carta Integrates 401(k) Plans with Cap Table Management
Carta has partnered with Morgan Stanley and Vestwell to link 401(k) retirement plans directly with its equity and cap table management platform. The integration aims to provide startup employees with a unified view of their total rewards, spanning cash, equity, and retirement savings. The move addresses growing demand from investor-backed companies for more holistic compensation and benefits solutions.
- This partnership divides responsibilities among the three firms: Morgan Stanley provides institutional-grade investment portfolios and acts as a fiduciary, Vestwell supplies the AI-native record-keeping technology, and Carta integrates it all within its existing platform. - Vestwell's technology is the engine for the plan's administration, integrating with over 200 payroll providers to automate contributions and simplify management for HR and finance teams. - The collaboration is an extension of a deepening relationship between Carta and Morgan Stanley. In November 2024, Carta named Morgan Stanley at Work its exclusive U.S. public equity platform for late-stage private companies preparing to go public. - A key feature for startups is the reduction of administrative burden, as Morgan Stanley's fiduciary role and Vestwell's platform help offload compliance and management tasks. - The pricing structure is designed for startups and aims to maximize SECURE 2.0 Act tax credits, which can help offset the costs of plan setup and administration for up to three years. - This move taps into a broader trend of employees expecting a more holistic and personalized total rewards package, which includes not just salary and equity but also robust retirement and wellness benefits. - The offering gives high-growth private companies access to the type of sophisticated, low-cost retirement plans that have traditionally been reserved for large enterprise corporations.
