Company 401(k) plans in Concord, MO. Given the ongoing inflation rates and a pro-employee job market, a couple of predominant issues have risen to the forefront of the majority of Concord, MO companies' lists: reducing costs and attracting and retaining high performers . Setting up a 401(k) plan could help your business accomplish both these goals. Company 401(k) plans not only function as robust ways to save for retirement, but also emphasize an organization's commitment to its staff's long-term financial well-being – all while providing desired tax reductions. Therefore, company 401(k) plans are an investment in the future – both for your business and for its team members.
In a period flooded with financial products, services, and shifting regulations, maneuvering through the retirement plan landscape is often intimidating for many Concord, MO business owners. Businesses need the insight of unbiased and independent financial advice in order to be at their best. That's where Correct Capital Wealth Management comes into play. If you are considering setting up a company 401(k) plan for your Concord, MO business, or already have one and want to modify it, reach out to Correct Capital today at 877-930-4015, or contact us through our website.
The Basics and Benefits of Company 401(k) Plans
A 401(k) plan is a tax-advantaged, defined-contribution retirement account employers provide to their employees. Titled after a section of the U.S. Internal Revenue Code, these plans enable employees to save and invest part of their paycheck before taxes are deducted (generally). Taxes aren't paid until the money is withdrawn from the account, typically once an employee hits retirement. For employers, matching contributions in company 401(k) plans can be deducted from the company's taxes.
The importance of a 401(k) plan goes beyond the current tax benefits. For employees, it function as a well-organized and orderly way to get ready for retirement, commonly boosted by employer matches. For employers, offering a 401(k) indicates a commitment to the long-term financial health of their workers, acting as a valuable tool for hiring, retention, aand employee satisfaction.
Common Challenges Concord, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan is often a great addition to your Concord, MO business. However, establishing, managing, and monitoring a 401(k) plan necessitates thorough thinking, clear strategy, and persistent commitment. Some of the most common challenges businesses meet include:
Choosing the Best Plan
There are countless options out there for businesses in search of company 401(k) plans. Companies need to sift 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 matching contribution amounts all need to be considered.
Administration Complexities
Managing a 401(k) plan is an ongoing process. From regular documentation to ensuring timely contributions, the managerial responsibilities can be substantial. Companies have to stay on top of enrollment periods, distributions, loan provisions, and other details that come with 401(k) administration.
Staying 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). Being current with these regulations and ensuring consistent compliance is absolutely crucial to prevent penalties and keep the plan's tax-favored status.
Teaching Employees About Their Benefits and Choices
A 401(k) plan's success doesn't merely hinge on its compliance; your employees need to get on board and understand how it's benefited them. It's vital to teach employees about the advantages of participating in the plan, the nature of employer matching, and the implications of their investment choices. An educated employee is likely to engage actively and make decisions that align with their financial goals
The best way to mitigate these usual concerns is by teaming up with a trusted Concord, MO financial advisor who will help you understand your options and your needs and customize 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 company demands a partner in Concord, MO that understands your individual needs, provides clarity in decision-making, and prioritizes what's in your best interest. Correct Capital stands as a dependable provider of custom 401(k) services in Concord, MO for numerous companies. Here’s what we think makes us stand out:
- Fiduciary duty — At Correct Capital Wealth Management, we are fiduciary advisors. Meaning, we're legally and ethically bound to do what we sincerely believe is in your best interest. As fiduciary advisors and CERTIFIED FINANCIAL PLANNER™ professionals, we are legally obligated 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
- Uphold the confidentiality and safeguard the privacy of client information
- Behave in a manner that reflects positively on the financial planning profession
- True independence — We're not constrained by partnerships with financial products or institutions. Our independent stance ensures that our advice is purely based on what we believe is best for your business, free from outside biases or incentives
- Established experience in company 401(k) plans — Correct Capital Wealth Management brings a track record of experience and success assisting both local Concord, MO and national businesses create and manage their company 401(k) plans. We currently manage over 30 plans in companies of all sizes, and handle 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
Knowledgeable financial advisors understand the intricacies of company 401(k) plans in Concord, MO and diligently seek avenues to enhance benefits for both the employer and employees. With our commitment to a client-centered approach, we offer distinctive value to companies looking to initiate or enhance their 401(k) plans:
Customized Plan Selection Based on Your Company’s Particular Needs
Each company has its own distinct set of goals, history, 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 grasping what makes your business tick, we're able to create a retirement plan that optimizes growth potential for all involved.
Streamlined Administration and Continual Management
Handling a 401(k) plan can be heavy on administration. We streamline this process for you. We help monitor how your team is keeping up with compliance checks, timely reporting, and more, and offer you our consultory services to ensure your administrative obligations do not become burdensome. Working with an experienced 401(k) provider in Concord, MO allows businesses to focus on what they do best, knowing their company 401(k) plan is in good hands.
Employee Instruction and Participation Efforts
A 401(k) plan is just as effective as its participation rate. We actively interact with employees, offering seminars, one-on-one meetings, and electronic resources to enlighten them about what your company 401(k) plan can offer them. By demystifying financial concepts and underscoring the significance of early and consistent contributions, we strive to boost employee participation and faith 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
Traversing the complexities of 401(k) plans can frequently result in concerns. In our commitment to clarity and client education, we've compiled a list of FAQs about company 401(k) plans in Concord, MO:
- How are company 401(k) plans funded?
Company 401(k) plans are primarily funded through elective salary deferrals from employees' paychecks. Furthermore, 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 compared to many other retirement options such as IRAs, as well as possible employer matching, loan provisions, and flexibility in investment options. Moreover, contributions can be made through either traditional or Roth deferrals, offering 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 salary. This match can be at an equal rate, 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 extra $7,500 for those 50 and older).
- How are 401(k) funds invested?
401(k) funds are usually invested in a range of options, mostly 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 based on their risk tolerance and retirement planning needs.
- What are the fees related to 401(k) plans?
Fees can vary based on the plan provider, investment choices, or and whether the company wants to pay 401k plan fees. Common fees contain administrative and recordkeeping fees, individual service fees, and investment-related fees. Investment fees for passive (index) fund managers can considerably reduce investment cost. Fees generally range from .5% to 2%, and the average fee is around 1% of assets managed.
- What the key responsibilities of an employer providing a company 401(k) plan?
Employers are accountable for choosing and monitoring 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 Concord, MO, Correct Capital can take on a lot of the fiduciary duty involved off your plate.
Other services we offer in Concord, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
Call Correct Capital for Your Company 401(k) Plans in Concord, MO Today
The appropriate advice 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 offer will be independent, objective, and unbiased. By partnering with Correct Capital, you ensure that your company's retirement benefits aren't just compliant and optimized but also adapted to satisfy the unique needs of your company and its employees. Set up a meeting with one of our financial advisors, reach out us at 877-930-4015, or contact us online to get started with your company 401(k) plans in Concord, MO right away.
