Company 401(k) plans in Concord, MO. Current inflation levels and a favorable job market for employees, two primary worries have risen to the top of most Concord, MO companies' lists: reducing costs and hiring and retaining high performers . Creating a 401(k) plan can help your business accomplish both. Company 401(k) plans not only act as strong ways to save for retirement, but also emphasize a company's dedication to its staff's long-term prosperity – all while providing essential tax breaks. Thus, company 401(k) plans are a commitment to a brighter tomorrow – both for your business and for its employees.
In a period overwhelmed with financial products, services, and shifting regulations, maneuvering through the retirement savings landscape is often intimidating for many Concord, MO business owners. Businesses need the insight of objective and independent financial guidance in order to be at their best. That's where Correct Capital Wealth Management steps in. If you're considering creating a company 401(k) plan for your Concord, MO business, or currently have one and want to alter it, contact 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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Company 401(k) Plans Explained
A 401(k) plan is a tax-advantaged, defined-contribution retirement account employers can offer to their employees. Titled after a section of the U.S. Internal Revenue Code, these plans enable employees to save and invest some of their paycheck before taxes are taken out (generally). Taxes are not due until the money is taken out from the account, usually after retirement. For employers, matching contributions in company 401(k) plans are tax deductible.
The relevance of a 401(k) plan goes beyond the current tax benefits. For employees, it function as a systematic and orderly way to get ready for retirement, often supplemented by employer matches. For employers, providing a 401(k) shows a commitment to the long-term economic stability of their employees, acting as a crucial tool for hiring, retention, aand employee contentment.
Common Challenges Concord, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan has been a boon for many Concord, MO businesses. Nonetheless, setting up, overseeing, and refining a 401(k) plan demands thorough thinking, clear strategy, and continuous commitment. Some of the most frequent challenges businesses encounter include:
Picking the Most Appropriate Plan
There are numerous options available for businesses searching for company 401(k) plans. Companies have to sort through these to determine which plan most aligns with the futures of both their business and employees. Factors such as plan type (e.g., traditional vs. Safe Harbor), investment options, and contribution structures all come into play.
Administration Complexities
Managing a 401(k) plan isn't a one-time endeavor. Starting from recordkeeping to ensuring timely contributions, the administrative responsibilities can be substantial. Companies must stay on top of enrollment periods, distributions, loan provisions, and other nuances that come with plan administration.
Remaining Compliant with Regulations
401(k) plans are governed regulatory oversight, set chiefly 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 absolutely essential to prevent penalties and keep the plan's tax-advantaged status.
Teaching Employees About Their Benefits and Choices
A 401(k) plan's success doesn't only hinge on its compliance; your employees need to buy in and understand the value it provides them. It's vital to educate 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 participate actively and make decisions that match with their financial goals
The most effective way to mitigate these usual concerns is by partnering with a trustworthy Concord, MO financial advisor that can help you understand your options and your requirements and adapt a company 401(k) plan that is optimal for your Concord, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Concord, MO
Your business demands a partner in Concord, MO that understands your individual needs, drives data-based decision-making, and prioritizes what's in your best interest. Correct Capital Wealth Management stands as a reliable provider of custom 401(k) services in Concord, MO for many companies. Below is what we think makes us stand out:
- Fiduciary duty — At Correct Capital, we're fiduciary advisors. Meaning, we're both legally and ethically bound to act in your best interest. As fiduciary advisors and CERTIFIED FINANCIAL PLANNER™ professionals, we are legally obligated to adhere to a Code of Ethics and Standards of Conduct, in which we must:
- Demonstrate honesty, 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 safeguard the privacy of client information
- Behave in a manner that reflects positively on the financial planning profession
- True independence — We are not constrained by partnerships with financial products or institutions. Our independent stance ensures that our advice is purely centered around what we believe is best for your business, free from outside biases or incentives
- Demonstrated experience in company 401(k) plans — Correct Capital Wealth Management brings an established history of experience and success aiding both local Concord, MO and national businesses establish and administer their company 401(k) plans. We currently manage over 30 plans in companies of all sizes, and oversee over $230 million* in total plan assets throughout the country. (*as of January 2022)
How Correct Capital Adds Value to Company 401(k) Plans in Concord, MO
Experienced financial advisors understand the nuances of company 401(k) plans in Concord, MO and actively seek avenues to optimize benefits for both the company and employees. With our commitment to a customer-focused approach, we offer distinctive value to companies looking to establish or enhance their 401(k) plans:
Customized Plan Selection In line with Your Company’s Unique Needs
Every company has its very own group of goals, culture, employee demographics, and financial situations. At Correct Capital Wealth Management, we understand this diversity and tailor 401(k) plan options to each of our clients' individual needs. By understanding what makes your business tick, we're able to create a retirement plan that aligns business and employees' interests.
Streamlined Administration and Continual Management
Managing a 401(k) plan can be administratively intensive. We streamline this process for you. We help keep tabs on how your team is keeping up with compliance checks, punctual reporting, and more, and offer you our consultory services to ensure your administrative responsibility do not become burdensome. Working with an experienced 401(k) provider in Concord, MO lets businesses to focus on what they do best, knowing their company 401(k) plan is in good hands.
Employee Learning and Participation Programs
A 401(k) plan is merely as effective as its participation rate. We proactively interact with employees, offering sessions, one-on-one consultations, and electronic resources to inform them about what your company 401(k) plan can offer them. By demystifying financial concepts and highlighting the relevance of early and consistent contributions, we strive to elevate employee participation and trust in their retirement planning. With Correct Capital, your employees will have their very own Concord, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Concord, MO
Navigating the complexities of 401(k) plans can often result in concerns. In our commitment to clarity and client education, we've put together a list of frequently asked questions about company 401(k) plans in Concord, MO:
- How are company 401(k) plans funded?
Company 401(k) plans are mainly funded through elective salary deferrals made by employees. Moreover, employers can choose to match a portion of the employee's contributions or offer non-elective contributions. Those funds are taken from business funds 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 than many other retirement options such as IRAs, as well as possible employer matching, loan provisions, and a greater variety of investment options. Moreover, contributions can be made through both traditional or Roth deferrals, giving greater tax flexibility for participants.
- How do employer matches work in a 401(k) plan?
Employers can choose to match employee 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 given limit ($66,000 in 2023, with an extra $7,500 for people closer to retirement).
- How are 401(k) funds invested?
401(k) funds are typically invested in a range of options, mostly involving mutual funds, such as 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 financial goals.
- What are the fees connected to 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 greatly 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 providing 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 remitting employee contributions speedily. As your advisors for your company 401(k) plan in Concord, MO, Correct Capital can take on much of the liability involved off your shoulders.
Other services we offer in Concord, MO include:
Reach out to Correct Capital for Your Company 401(k) Plans in Concord, MO Today
The appropriate direction when providing your company 401(k) plan in Concord, MO can make every bit of difference. Correct Capital Wealth Management, founded in Concord, MO, gives 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 customized to satisfy the unique needs of your business and its employees. Set up a meeting 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 Concord, MO today.
