Company 401(k) plans in Des Peres, MO. Given the ongoing economic conditions and a pro-employee job market, two main concerns have risen to the forefront of the majority of Des Peres, MO companies' priorities: saving money and attracting and retaining talent . Establishing a 401(k) plan could help you accomplish both. Company 401(k) plans not only act as robust ways to save for retirement, but also underscore a company's dedication to their workers' long-term economic security – all while providing savings for the company in the form of reduced taxes. In this way, company 401(k) plans stand as a commitment to the future – both for the company and for its team members.
In a period flooded with financial products, provisions, and changing regulations, maneuvering through the retirement plan landscape can be intimidating for many Des Peres, MO business owners. Companies need the knowledge of impartial and independent financial advice to be on top of their game. That's where Correct Capital Wealth Management steps in. If you are considering creating a company 401(k) plan for your Des Peres, MO business, or even currently have one and want to alter it, call Correct Capital now at 877-930-4015, or fill out our online contact form.
Company 401(k) Plans Explained
A 401(k) plan is a tax-advantaged, defined-contribution retirement account businesses provide to their employees. Titled after a part of the U.S. Internal Revenue Code, these plans enable employees to put away and invest part of their paycheck before taxes are deducted (generally). Taxes aren't due until the money is withdrawn from the account, generally once an employee hits retirement. For employers, matching contributions in company 401(k) plans are considered tax deductible.
The relevance of a 401(k) plan goes beyond the current tax benefits. For employees, it represents a systematic and disciplined way to get ready for retirement, frequently boosted by employer contributions. For employers, providing a 401(k) indicates a dedication to the long-term financial health of their employees, acting as a crucial tool for hiring, retention, aand employee contentment.
Common Challenges Des Peres, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan can be a great addition to your Des Peres, MO business. However, creating, overseeing, and refining a 401(k) plan necessitates careful consideration, clear strategy, and ongoing commitment. A few of the most prevalent challenges businesses face include:
Picking the Right Plan
There are myriad options out there for businesses searching for company 401(k) plans. Companies must sift 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 (e.g., traditional vs. Safe Harbor), investment options, and matching contribution percentages all come into play.
Administration Complexities
Managing a 401(k) plan isn't a one-time task. From recordkeeping through to ensuring timely contributions, the administrative responsibilities are substantial. Companies have to keep up with enrollment periods, distributions, loan provisions, and other details that accompany plan management.
Remaining Compliant 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). Staying up with these regulations and ensuring consistent compliance is essential to avert penalties and maintain the plan's tax-favored status.
Teaching Employees About Their Benefits and Choices
A 401(k) plan's success doesn't only depend on its administration; your employees need to get on board and understand how it's benefited them. It's crucial to teach employees about the advantages of enrolling, the nature of employer matching, and the investment options available to them. An informed employee is likely to participate actively and make decisions that align with their financial goals
The most effective way to mitigate these common concerns collaborating with a dependable Des Peres, MO financial advisor that can help you understand the options available to you and your requirements and tailor a company 401(k) plan that works best for your Des Peres, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Des Peres, MO
Your business requires a partner in Des Peres, MO who understands your individual needs, drives data-based decision-making, and has your interests at heart. Correct Capital is a trusted provider of custom 401(k) services in Des Peres, MO for many companies. Here’s what we think makes us stand out:
- Fiduciary duty — At Correct Capital, we are held to a fiduciary duty. 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 obligated to follow 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
- Uphold the confidentiality and safeguard the privacy of client information
- Behave in a manner that reflects favorably on the financial planning profession
- Real independence — We are not constrained by affiliations with financial products or institutions. Our independent stance ensures that our advice is solely founded on our professional opinion on what is best for your business, unaffected by external biases or incentives
- Demonstrated experience in company 401(k) plans — Correct Capital brings a proven history of experience and success helping both local Des Peres, 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 oversee over $230 million* in total plan assets throughout the U.S. (*as of January 2022)
How Correct Capital Adds Value to Company 401(k) Plans in Des Peres, MO
Experienced financial advisors understand the nuances of company 401(k) plans in Des Peres, MO and actively seek avenues to enhance benefits for both the company and employees. With our devotion to a client-centered approach, we offer distinctive value to companies looking to establish or enhance their 401(k) plans:
Personalized Plan Selection According to Your Company’s Specific Needs
Every company has its own set of goals, culture, employee demographics, and financial situations. At Correct Capital Wealth Management, we recognize this diversity and customize 401(k) plan options to each of our clients' individual needs. By grasping what makes your business tick, we're able to craft 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 keep tabs on how your team is staying updated with compliance checks, prompt 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. Having an experienced 401(k) provider in Des Peres, MO enables businesses to focus on their main operations, knowing their company 401(k) plan is in good hands.
Employee Instruction and Participation Initiatives
A 401(k) plan is only as productive as its participation rate. We actively engage with employees, providing workshops, one-on-one consultations, and online resources to educate them about what your company 401(k) plan can offer them. By clarifying financial concepts and highlighting the relevance of early and consistent 401(k) savings, we aim to elevate employee participation and faith in their retirement planning. With Correct Capital, your employees will have their very own Des Peres, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Des Peres, MO
Traversing the complexities of 401(k) plans can frequently lead to concerns. In our commitment to openness and client education, we've assembled a list of FAQs about company 401(k) plans in Des Peres, MO:
- How are company 401(k) plans funded?
Company 401(k) plans are primarily funded through voluntary salary deferrals made by employees. Additionally, employers can choose to match a part 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 benefits of a 401(k) compared to 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 a greater variety of investment choices. Additionally, 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 dollar for dollar, 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 people closer to retirement).
- How are 401(k) funds invested?
401(k) funds are usually 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 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 or not 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 substantially 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 in charge of picking and monitoring the plan provider, ensuring compliance with federal regulations, providing timely disclosures to employees, and submitting employee contributions promptly. As your advisors for your company 401(k) plan in Des Peres, MO, Correct Capital can take on a great deal of the liability included off your shoulders.
Other services we offer in Des Peres, 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 Des Peres, MO Today
The appropriate direction when providing your company 401(k) plan in Des Peres, MO can make all the difference. Correct Capital Wealth Management, founded in Des Peres, MO, offers fiduciary responsibility and our I.O.U. promise: all the advice we provide 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 tailored to satisfy the unique needs of your business and its employees. Schedule 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 Des Peres, MO right away.
