Company 401(k) plans in Brentwood, MO. With the present inflation rates and an employee-friendly job market, a couple of predominant issues have risen to the forefront of the majority of Brentwood, MO companies' agendas: reducing costs and hiring and retaining talent . Establishing a 401(k) plan can help your company accomplish both. Company 401(k) plans not only function as strong retirement saving tools, but also highlight an organization's commitment to their workers' long-term financial security – all while providing savings for the company in the form of reduced taxes. Thus, company 401(k) plans are a commitment to a brighter tomorrow – both for your business and for its workers.
In a time inundated with financial products, services, and changing regulations, navigating the retirement savings landscape can be daunting for many Brentwood, MO business owners. Businesses need the wisdom of objective 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 already have one and want to change it, reach out to Correct Capital today at 877-930-4015, or contact us online.
The Basics and Benefits of Company 401(k) Plans
A 401(k) plan is a tax-advantaged, defined-contribution retirement account companies can offer to their employees. Named after a part of the U.S. Internal Revenue Code, these plans enable employees to save and invest part of their paycheck before taxes are taken out (generally). Taxes are not paid until the money is withdrawn from the account, typically after retirement. For employers, matching contributions in company 401(k) plans are considered tax deductible.
The importance of a 401(k) plan extends beyond the current tax benefits. For employees, it function as a well-organized and disciplined way to prepare for retirement, commonly supplemented by employer contributions. For employers, providing a 401(k) indicates a dedication to the long-term financial well-being of their workers, functioning as a crucial tool for hiring, 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. Nonetheless, creating, handling, and refining a 401(k) plan demands thorough thinking, clear strategy, and ongoing commitment. Some of the most common challenges businesses encounter include:
Picking the Best Plan
There are myriad options available for businesses searching for company 401(k) plans. Companies need to sift through these to determine which plan most aligns with their financial situation, business goals, and the needs of their employees. Factors such as plan type (for example, traditional vs. Safe Harbor), investment options, and contribution structures all need to be considered.
Administration Difficulties
Managing a 401(k) plan is not a one-time task. Beginning with regular documentation to ensuring timely contributions, the managerial responsibilities are substantial. Companies need to keep up with enrollment periods, distributions, loan provisions, and other nuances that are associated with 401(k) administration.
Remaining Compliant with Regulations
401(k) plans are governed regulatory oversight, set primarily by the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Service (IRS). Staying up with these regulations and ensuring you don't break the rules is vital to avoid penalties and maintain the plan's tax-advantaged status.
Teaching Employees About Their Benefits and Choices
A 401(k) plan's success doesn't merely depend on its administration; your employees have to buy in and understand how it's benefited them. It's crucial to teach employees about the benefits of participating in the plan, the nature of employer matching, and the investment options available to them. An informed employee is more likely to use the plan for all it's worth
The best way to mitigate these frequent concerns is through teaming up with a reliable Brentwood, MO financial advisor who can help you understand the options available to you and your requirements and tailor a company 401(k) plan that is optimal for your Brentwood, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Brentwood, MO
Your business demands a partner in Brentwood, MO that understands your distinct needs, offers clarity in decision-making, and has your interests at heart. Correct Capital stands as a dependable provider of custom 401(k) services in Brentwood, MO for several companies. Here’s what sets us apart:
- Fiduciary duty — At Correct Capital Wealth Management, we are fiduciary advisors. Meaning, we're legally and ethically bound to act in your best interest. As fiduciary advisors and CERTIFIED FINANCIAL PLANNER™ professionals, we are legally required to follow a Code of Ethics and Standards of Conduct, in which we must:
- Act with honesty, integrity, competence, and diligence
- Act in the client's best interests
- Exercise due care
- Avoid or disclose and manage conflicts of interest
- Uphold the confidentiality and protect the privacy of client information
- Conduct oneself in a manner that reflects positively on the financial planning profession
- Real independence — We're not tied down by partnerships with financial products or institutions. Our independent stance ensures that our advice is purely centered around our professional opinion on what is best for your business, free from external biases or incentives
- Proven experience in company 401(k) plans — Correct Capital brings an established history of experience and success aiding both local Brentwood, MO and national businesses establish and administer their company 401(k) plans. Our financial advisors are currently managing over 30 plans in both small and large companies, and represent over $230 million* in total plan assets across the U.S. (*as of January 2022)
How Correct Capital Adds Value to Company 401(k) Plans in Brentwood, MO
Skilled financial advisors understand the intricacies of company 401(k) plans in Brentwood, MO and diligently seek avenues to optimize benefits for both the business and employees. With our commitment to a customer-focused approach, we offer distinctive value to companies looking to set up or enhance their 401(k) plans:
Personalized Plan Selection In line with Your Company’s Particular Needs
Each company has its very own set of goals, history, employee demographics, and financial situations. At Correct Capital Wealth Management, we acknowledge this diversity and adapt 401(k) plan options to each of our clients' individual needs. By understanding the intricacies of your business, we're able to create a retirement plan that aligns business and employees' interests.
Simplified Administration and Continual Management
Handling a 401(k) plan can be heavy on administration. We simplify administrative tasks for you. We help monitor how your office is staying updated with compliance checks, punctual reporting, and more, and offer you our consultory services to ensure your administrative responsibility are not burdensome. Working with an experienced 401(k) provider in Brentwood, MO enables businesses to focus on their main operations, knowing their company 401(k) plan is in good hands.
Employee Instruction and Involvement Efforts
A 401(k) plan is merely as productive as its participation rate. We diligently communicate with employees, providing seminars, one-on-one meetings, and online resources to enlighten them about what your company 401(k) plan can offer them. By simplifying financial concepts and highlighting the significance of early and consistent contributions, we aim to elevate employee participation and trust 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
Traversing the details of 401(k) plans can frequently result in questions. In our commitment to clarity and client education, we've compiled a list of FAQs about company 401(k) plans in Brentwood, MO:
- In what way are company 401(k) plans funded?
Company 401(k) plans are mainly funded through voluntary salary deferrals made by employees. Moreover, employers can choose to match a segment of the employee's contributions or offer non-elective contributions. Those funds are taken from your company's finances and do not count as taxable revenue.
- What are the advantages of a 401(k) over other retirement options?
Company 401(k) plans offer higher contribution limits compared to many other retirement options such as IRAs, as well as possible employer matching, loan provisions, and flexibility in investment options. Additionally, contributions can be made through either traditional or Roth deferrals, providing greater tax flexibility to your employees.
- How do employer matches work in a 401(k) plan?
Employers can choose to match employee contributions up to a certain percentage of the employee's earnings. This match can be one-to-one, or a different ratio, and the employee's total contribution, comprising yours and their contributions, cannot exceed a set limit ($66,000 in 2023, with an additional $7,500 for those 50 and older).
- How are 401(k) funds invested?
401(k) funds are typically invested in a selection of options, primarily involving mutual funds, including 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 depending on their risk tolerance and retirement planning needs.
- What are the fees associated with 401(k) plans?
Fees depend largely on the plan provider, investments, or and whether the company wants to pay 401k plan fees. Typical fees include administrative and recordkeeping fees, individual service fees, and investment-related fees. Investment fees for passive (index) fund managers can greatly reduce certain fees. Fees usually range from .5% to 2%, and the average fee is around 1% of assets managed.
- What the key responsibilities of an employer offering a company 401(k) plan?
Employers are responsible for choosing and monitoring the plan provider, ensuring compliance with federal regulations, giving timely disclosures to employees, and sending employee contributions quickly. As your advisors for your company 401(k) plan in Brentwood, MO, Correct Capital can take on a lot of the liability included off your shoulders.
Other services we offer in Brentwood, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
Contact Correct Capital for Your Company 401(k) Plans in Brentwood, MO Today
The right guidance when providing your company 401(k) plan in Brentwood, MO can make all the 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 aren't merely compliant and optimized but also adapted to satisfy the unique needs of your business and its employees. Schedule a meeting with one of our financial advisors, call us at 877-930-4015, or contact us through our website to get started with your company 401(k) plans in Brentwood, MO right away.
