Company 401(k) plans in Brentwood, MO. Given the ongoing inflation levels as well as an employee-friendly job market, a couple of predominant issues have emerged for many businesses: cost-saving and attracting and retaining talent . Setting up a 401(k) plan could help you accomplish both these goals. Company 401(k) plans not only function as robust retirement saving tools, but also underscore a business's devotion to their workers' long-term prosperity – all while providing savings for the company in the form of reduced taxes. In this way, company 401(k) plans stand as a pledge to the future – both for your business and for its team members.
In an era inundated with financial products, provisions, and changing regulations, navigating the retirement plan landscape can be overwhelming for many Brentwood, MO business owners. Companies need the knowledge of unbiased and independent financial guidance to be on top of their game. That's where Correct Capital Wealth Management comes into play. If you are considering creating a company 401(k) plan for your Brentwood, MO business, or even already have one and want to modify it, call Correct Capital today at 877-930-4015, or fill out our online contact form.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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The Basics and Benefits of Company 401(k) Plans
A 401(k) plan is a tax-advantaged, defined-contribution retirement account employers extend to their employees. Named after a section of the U.S. Internal Revenue Code, these plans enable employees to set aside and invest some of their paycheck before taxes are taken out (generally). Taxes aren't due until the money is withdrawn from the account, generally after retirement. For employers, matching contributions in company 401(k) plans are considered tax deductible.
The relevance of a 401(k) plan surpasses the current tax benefits. For employees, it function as a systematic and orderly way to get ready for retirement, commonly enhanced by employer contributions. For employers, offering a 401(k) shows a dedication to the long-term financial well-being of their workers, serving as an invaluable tool for recruitment, retention, aand employee satisfaction.
Common Challenges Brentwood, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan is often a great addition to your Brentwood, MO business. However, creating, managing, and monitoring a 401(k) plan necessitates careful consideration, clear strategy, and continuous commitment. Several of the most common challenges businesses encounter include:
Selecting the Most Appropriate Plan
There are numerous options available for businesses in search of company 401(k) plans. Companies must sift through these to determine which plan best aligns with the futures of both their business and employees. Factors such as plan type (for example, traditional vs. Safe Harbor), investment options, and matching contribution percentages are all crucial.
Administration Difficulties
Handling a 401(k) plan is an ongoing process. Starting from regular documentation through to ensuring timely contributions, the managerial responsibilities can be substantial. Companies need to keep up with enrollment periods, distributions, loan provisions, and other intricacies that are associated with plan management.
Remaining Compliant with Regulations
401(k) plans are governed by stringent regulations, set primarily by the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Service (IRS). Staying up with these regulations and ensuring consistent compliance is absolutely essential to avoid penalties and keep the plan's tax-advantaged status.
Teaching Employees About Their Benefits and Choices
A 401(k) plan's success doesn't just hinge on its establishment; your employees have to get on board and understand how it's benefited them. It's vital to teach employees about the benefits of participating in the plan, how matching contributions work, and the investment options available to them. An educated employee is likely to participate actively and make decisions that coincide with their financial goals
The best way to allay these usual concerns is by collaborating with a trusted Brentwood, MO financial advisor who can help you understand the options available to you and your needs and adapt a company 401(k) plan that is most effective for your Brentwood, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Brentwood, MO
Your business requires a partner in Brentwood, MO who understands your distinct needs, offers clarity in decision-making, and has your interests at heart. Correct Capital Wealth Management is a trusted provider of custom 401(k) services in Brentwood, MO for many companies. Here’s what we think makes us stand out:
- Fiduciary duty — At Correct Capital Wealth Management, we're fiduciary advisors. Meaning, we're legally and ethically committed to do what we sincerely believe is in your best interest. As fiduciary advisors and CERTIFIED FINANCIAL PLANNER™ professionals, we are legally bound to adhere to a Code of Ethics and Standards of Conduct, in which we must:
- Act with truthfulness, integrity, competence, and diligence
- Act in the client's best interests
- Exercise due care
- Avoid or disclose and manage conflicts of interest
- Maintain the confidentiality and protect the privacy of client information
- Behave in a manner that reflects favorably on the financial planning profession
- Real independence — We're not tied down by affiliations with financial products or institutions. Our independent stance ensures that our advice is solely founded on what we believe is best for your business, free from outside biases or incentives
- Established experience in company 401(k) plans — Correct Capital brings an established history of experience and success helping both local Brentwood, MO and national businesses establish and administer their company 401(k) plans. Our retirement consultants are currently managing over 30 plans in companies of all sizes, and handle over $230 million* in total plan assets across the country. (*as of January 2022)
How Correct Capital Adds Value to Company 401(k) Plans in Brentwood, MO
Experienced financial advisors understand the intricacies of company 401(k) plans in Brentwood, MO and diligently seek avenues to enhance benefits for both the employer and employees. With our commitment to a customer-focused approach, we offer special value to companies looking to set up or enhance their 401(k) plans:
Personalized Plan Selection According to Your Company’s Unique Needs
Every company has its own distinct group of goals, history, employee demographics, and financial situations. At Correct Capital, we recognize this diversity and tailor 401(k) plan options to meet these individual needs. By comprehending the intricacies of your business, we're able to design a retirement plan that aligns business and employees' interests.
Simplified Administration and Continual Management
Managing a 401(k) plan can be heavy on administration. We streamline this process for you. We help monitor how your office is keeping up with compliance checks, punctual reporting, and more, and offer you our consultory services to ensure the administrative duties that come with a 401(k) plan are not burdensome. Having an experienced 401(k) provider in Brentwood, MO enables businesses to focus on their primary operations, knowing their company 401(k) plan is in good hands.
Employee Education and Participation Programs
A 401(k) plan is merely as productive as its participation rate. We actively engage with employees, providing workshops, one-on-one meetings, and online resources to inform them about their retirement benefits. By demystifying financial concepts and underscoring the importance of early and consistent retirement savings, we strive to increase employee participation and faith in their retirement planning. With Correct Capital, your employees will have their very own Brentwood, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Brentwood, MO
Navigating the intricacies of 401(k) plans can frequently lead to concerns. In our commitment to clarity and client education, we've assembled a list of frequently asked questions about company 401(k) plans in Brentwood, MO:
- In what way are company 401(k) plans funded?
Company 401(k) plans are primarily funded through elective salary deferrals made by employees. Furthermore, employers can choose to match a segment of the employee's contributions or offer non-elective contributions. Those funds are taken from business funds and are tax-deductible.
- What are the benefits of a 401(k) compared to other retirement options?
Company 401(k) plans offer greater contribution limits relative to many other retirement options such as IRAs, together with potential employer matching, loan provisions, and a greater variety of investment choices. Additionally, contributions can be made through both traditional or Roth deferrals, offering greater tax flexibility to your employees.
- How do employer matches work in a 401(k) plan?
Employers can offer matching contributions up to a specific percentage of the employee's earnings. This match can be one-to-one, or a different ratio, and the employee's total contribution, including yours and their contributions, cannot exceed a specified limit ($66,000 in 2023, with an added $7,500 for "catch-up" contributions).
- How are 401(k) funds invested?
401(k) funds are normally invested in a selection of options, primarily involving mutual funds, like target-date funds, large-cap and small-cap funds, real estate funds, and bond funds. As a plan fiduciary, Correct Capital can select and oversee the specific investment choices, and employees can customize their portfolios according to their risk tolerance and financial goals.
- What are the fees associated with 401(k) plans?
Fees depend largely on the plan provider, investments, or and if the company wants to pay 401k plan fees. Usual fees include administrative and recordkeeping fees, individual service fees, and investment-related fees. Investment fees for passive (index) fund managers can considerably reduce certain fees. Fees generally range from .5% to 2%, and the average fee is approximately 1% of assets managed.
- What the key responsibilities of an employer offering a company 401(k) plan?
Employers are in charge of picking and watching the plan provider, ensuring compliance with federal regulations, giving timely disclosures to employees, and submitting employee contributions speedily. As your advisors for your company 401(k) plan in Brentwood, MO, Correct Capital can take on a great deal of the fiduciary duty involved off your plate.
Other services we offer in Brentwood, MO include:
Contact Correct Capital for Your Company 401(k) Plans in Brentwood, MO Today
The right direction when providing your company 401(k) plan in Brentwood, MO can make every bit of difference. Correct Capital Wealth Management, founded in Brentwood, MO, gives fiduciary responsibility and our I.O.U. promise: all the advice we offer will be independent, objective, and unbiased. By teaming up with Correct Capital, you ensure that your company's retirement benefits are not only compliant and optimized but also adapted to meet the unique needs of your company and its employees. Schedule an appointment with one of our financial advisors, reach out us at 877-930-4015, or contact us through our website to get started with your company 401(k) plans in Brentwood, MO now.
