Company 401(k) plans in Chesterfield, MO. Current inflation rates as well as a favorable job market for employees, two main concerns have emerged for many businesses: saving money and attracting and retaining talent . Establishing a 401(k) plan could help your company accomplish both. Company 401(k) plans not only serve as robust ways to save for retirement, but also underscore a business's dedication to its employees' long-term prosperity – all while offering much needed tax reductions. Thus, company 401(k) plans are a commitment to a brighter tomorrow – both for the company and for its team members.
In a time overwhelmed with financial products, services, and changing regulations, navigating the retirement plan landscape can be daunting for many Chesterfield, MO business owners. Businesses need the wisdom of objective and independent financial guidance in order to be at their best. That's where Correct Capital Wealth Management enters the picture. If you are considering setting up a company 401(k) plan for your Chesterfield, MO business, or even already have one and want to change it, reach out to Correct Capital now at 877-930-4015, or contact us through our website.
Schedule a Meeting With an Advisor Today
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.
Schedule a 15-Minute Introductory Call
Company 401(k) Plans Explained
A 401(k) plan is a tax-advantaged, defined-contribution retirement account companies extend to their employees. Titled after a section of the U.S. Internal Revenue Code, these plans permit employees to save and invest part of their paycheck before taxes are deducted (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 Taxes aren't due until the money is withdrawn from the account, generally after retirement.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 significance of a 401(k) plan surpasses the immediate tax benefits. For employees, it acts as a structured and orderly way to get ready for retirement, frequently enhanced by employer contributions. For employers, offering a 401(k) indicates a commitment to the long-term economic stability of their workers, functioning as an invaluable tool for hiring, retention, aand employee satisfaction.
Common Challenges Chesterfield, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan is often a fantastic addition to your Chesterfield, MO business. Nonetheless, creating, managing, and optimizing a 401(k) plan necessitates careful consideration, clear strategy, and persistent commitment. A few of the most prevalent challenges businesses encounter include:
Choosing the Most Appropriate Plan
There are countless options out there for businesses looking for company 401(k) plans. Companies have to sort through these to ascertain which plan best 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
Handling a 401(k) plan is an ongoing process. Beginning with recordkeeping to ensuring timely contributions, the managerial responsibilities can be substantial. Companies need to keep up with enrollment periods, distributions, loan provisions, and other details that are associated with plan management.
Ensuring Compliance with Regulations
401(k) plans are governed regulatory oversight, set mainly by the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Service (IRS). Being current with these regulations and ensuring consistent compliance is absolutely vital to prevent penalties and sustain the plan's tax-beneficial status.
Teaching Employees About Their Benefits and Choices
A 401(k) plan's success doesn't merely hinge on its compliance; your employees have to be invested and understand how it's benefited them. It's crucial to inform 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 likely to engage actively and make decisions that align with their financial goals
The best way to mitigate these usual concerns is through partnering with a trustworthy Chesterfield, MO financial advisor that can help you understand the options available to you and your requirements and tailor a company 401(k) plan that is optimal for your Chesterfield, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Chesterfield, MO
Your company demands a partner in Chesterfield, MO that understands your unique needs, drives data-based decision-making, and keeps your interests at heart. Correct Capital is a dependable provider of custom 401(k) services in Chesterfield, MO for many companies. Below is what sets us apart:
- Fiduciary duty — At Correct Capital Wealth Management, we're fiduciary advisors. Meaning, we're both legally and ethically committed to act in your best interest. As fiduciary advisors and CERTIFIED FINANCIAL PLANNER™ professionals, we are legally bound to follow a Code of Ethics and Standards of Conduct, in which we must:
- Demonstrate truthfulness, integrity, competence, and diligence
- Act in the client's best interests
- Exercise due care
- Avoid or disclose and manage conflicts of interest
- Keep the confidentiality and protect the privacy of client information
- Conduct oneself in a manner that reflects positively on the financial planning profession
- True independence — We are not bound by affiliations 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
- Demonstrated experience in company 401(k) plans — Correct Capital Wealth Management brings a proven history of experience and success helping both local Chesterfield, MO and national businesses set up and administer their company 401(k) plans. We currently manage over 30 plans in companies of all sizes, and represent 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 Chesterfield, MO
Experienced financial advisors understand the nuances of company 401(k) plans in Chesterfield, MO and actively seek avenues to optimize benefits for both the company and employees. With our devotion to a client-centered approach, we offer special value to companies looking to establish or enhance their 401(k) plans:
Customized Plan Selection According to Your Company’s Unique Needs
Every company has its own group of goals, history, employee demographics, and financial situations. At Correct Capital Wealth Management, we acknowledge this diversity and adapt 401(k) plan options to satisfy these individual needs. By grasping what makes your business tick, we're able to craft a retirement plan that aligns business and employees' interests.
Simplified Administration and Ongoing Management
Administering a 401(k) plan can be loaded with administrative tasks. We streamline administrative tasks for you. We help keep tabs on how your team is keeping up with compliance checks, timely reporting, and more, and offer you our consultory services to ensure the administrative duties that come with a 401(k) plan do not become burdensome. Working with an experienced 401(k) provider in Chesterfield, MO lets businesses to focus on their main operations, knowing their company 401(k) plan is in good hands.
Employee Education and Engagement Initiatives
A 401(k) plan is just as effective as its participation rate. We proactively engage with employees, giving seminars, one-on-one consultations, and electronic resources to educate them about what your company 401(k) plan can offer them. By clarifying financial concepts and highlighting the importance of early and consistent retirement savings, we endeavor to elevate employee participation and confidence in their retirement planning. With Correct Capital, your employees will have their very own Chesterfield, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Chesterfield, MO
Traversing the intricacies of 401(k) plans can often result in concerns. In our dedication to clarity and client education, we've put together a list of FAQs about company 401(k) plans in Chesterfield, MO:
- In what way are company 401(k) plans funded?
Company 401(k) plans are mainly funded through voluntary salary deferrals from employees' paychecks. Furthermore, 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 are tax-deductible.
- What are the benefits of a 401(k) against other retirement options?
Company 401(k) plans offer greater contribution limits compared to many other retirement options such as IRAs, together with potential employer matching, loan provisions, and a greater variety of investment options. Furthermore, contributions can be made through both 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 particular percentage of the employee's salary. 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 specified limit ($66,000 in 2023, with an extra $7,500 for "catch-up" contributions).
- How are 401(k) funds invested?
401(k) funds are typically invested in a variety 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 monitor the specific investment choices, and employees can customize their portfolios based on their risk tolerance and retirement planning needs.
- What are the fees associated with 401(k) plans?
Fees depend largely on the plan provider, investment choices, 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 significantly reduce investment cost. Fees typically range from .5% to 2%, and the average fee is about 1% of assets managed.
- What the key responsibilities of an employer offering a company 401(k) plan?
Employers are responsible for selecting and overseeing 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 Chesterfield, MO, Correct Capital can take on a great deal of the liability involved off your shoulders.
Other services we offer in Chesterfield, MO include:
Call Correct Capital for Your Company 401(k) Plans in Chesterfield, MO Today
The appropriate direction when offering your company 401(k) plan in Chesterfield, MO can make all the difference. Correct Capital Wealth Management, based in Chesterfield, MO, provides fiduciary responsibility and our I.O.U. promise: all the advice we give will be independent, objective, and unbiased. By partnering 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 a meeting with a member of our advisor team, reach out us at 877-930-4015, or contact us through our website to get started with your company 401(k) plans in Chesterfield, MO today.
