401(k) Pioneer Tackles Hardship Withdrawals, Emergency Savings Through ‘Radish’

Ted Benna, often referred to as the “father of the 401(k),” says his newest workplace savings innovation aims to address workers’ need for accessible short-term savings.

Radish Plan Inc., which launched earlier this year, is an entirely employer-funded plan with contributions made based on employee performance. Under the plan, employers contribute money to accounts for workers who meet metrics such as safety targets, tenure milestones or consistent attendance.

“It could be a sidecar, and what it will do is it will help reduce the pressure to take hardship withdrawals and loans from your 401(k),” Benna says.

While Benna describes Radish as a potential sidecar to a traditional retirement plan, the Radish Plan is structured as a qualified retirement plan and offers tax advantages for employers.

The 401(a) plan is geared toward employees not considered highly compensated under IRS rules, meaning those earning less than $160,000 in 2025. According to Benna, that structure allows employers to avoid payroll taxes on incentive payments.

Broadridge Financial Solutions and Matrix Trust Co. serve as custodians for the plan’s investment lineup. Unlike assets held in a traditional 401(k), funds in a Radish account can be accessed more easily by participants.

“If somebody needs $1,000 for a car repair or a new set of tires … they can withdraw, really for any reason the employer allows,” Benna says.

Speaking to plan advisers, Benna says the Radish Plan “is very different from what you’re used to dealing with,” as it is designed to address short-term financial needs, rather than long-term retirement accumulation.

Advisers can partner with Radish to offer this plan alongside other conventional retirement plans as an option for clients who need extra short-term funds.

While 401(k) plans are designed to help workers save for retirement, many lower- and middle-income employees struggle to defer part of their paycheck. As a result, hardship withdrawals and plan loans have become increasingly common.

“The average credit card debt right now is $6,500, and so there are a lot of employees making minimum payments … coupled with the 401(k) withdrawals and loans,” says Kyle Bagley, the Radish Plan’s CEO and co-founder. “Having this on the side to give someone a real sense of security and a safety net allows their mind to focus more on at work.”

Benna acknowledges that adoption may take longer than it did for the 401(k), in part because the Radish Plan is aimed at a different segment of the workforce.

“401(k) wasn’t easy to launch,” Benna says. “It took some time and effort, but once it got traction, it went fast because of the benefit to the owners and [the] highly paid. This one is taking a bit longer because the participant base is different.”