Company 401(k) plans in Edwardsville, IL. Given the ongoing inflation rates and a favorable job market for employees, a couple of predominant issues have climbed to the forefront of most Edwardsville, IL companies' priorities: saving money and hiring and retaining high performers . Setting up a 401(k) plan can help your company achieve both. Company 401(k) plans not only function as strong tools for retirement savings, but also highlight a company's dedication to its employees' 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 a brighter tomorrow – both for the company and for its workers.
In a period inundated with financial products, provisions, and evolving regulations, maneuvering through the retirement plan landscape can be overwhelming for many Edwardsville, IL business owners. Businesses need the knowledge of impartial and independent financial guidance to be on top of their game. That's where Correct Capital Wealth Management steps in. If you are thinking of creating a company 401(k) plan for your Edwardsville, IL business, or currently have one and want to modify it, contact Correct Capital now 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 businesses extend to their employees. Named after a section 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 are not paid until the money is taken out from the account, typically after retirement. For employers, matching contributions in company 401(k) plans are considered tax deductible.
The significance of a 401(k) plan extends beyond the immediate tax benefits. For employees, it acts as a well-organized and orderly way to get ready for retirement, commonly enhanced 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 recruitment, retention, aand employee happiness.
Common Challenges Edwardsville, IL Businesses Face With Company 401(k) Plans
A company 401(k) plan is often a fantastic addition to your Edwardsville, IL business. However, establishing, managing, and refining a 401(k) plan demands meticulous planning, clear strategy, and ongoing commitment. Several of the most frequent challenges businesses face include:
Picking the Most Appropriate Plan
There are numerous options available for businesses searching for company 401(k) plans. Companies must navigate these to ascertain which plan best aligns with their financial standing, business goals, and the needs of their employees. Factors such as plan type (e.g., traditional vs. Safe Harbor), investment options, and contribution structures all come into play.
Administration Difficulties
Handling a 401(k) plan is an ongoing process. Beginning with recordkeeping to ensuring timely contributions, the administrative responsibilities are substantial. Companies must stay on top of enrollment periods, distributions, loan provisions, and other nuances that accompany plan management.
Remaining Compliant with Regulations
401(k) plans are governed by stringent regulations, 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 absolutely vital to avoid penalties and sustain the plan's tax-beneficial status.
Educating Employees on The Company 401(k) Plan
A 401(k) plan's success doesn't merely hinge on its establishment; your employees have to get on board and understand how it's benefited them. It's vital to educate employees about the benefits of participating in the plan, the nature of employer matching, and the implications of their investment choices. An informed employee is likely to participate actively and make decisions that align with their financial goals
The most effective way to address these usual concerns collaborating with a reliable Edwardsville, IL financial advisor that will help you understand your options and your needs and adapt a company 401(k) plan that works best for your Edwardsville, IL business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Edwardsville, IL
Your company needs a partner in Edwardsville, IL who understands your individual needs, provides clarity in decision-making, and holds your interests at heart. Correct Capital Wealth Management is a reliable provider of custom 401(k) services in Edwardsville, IL for numerous companies. Here’s what sets us apart:
- Fiduciary duty — At Correct Capital Wealth Management, we're bound by a fiduciary duty. Meaning, we're legally and ethically committed to do what we sincerely believe is 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:
- 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 protect the privacy of client information
- Behave in a manner that reflects positively on the financial planning profession
- True independence — We're not constrained by affiliations with financial products or institutions. Our independent stance ensures that our advice is solely based on our professional opinion on what is best for your business, unaffected by outside biases or incentives
- Established experience in company 401(k) plans — Correct Capital Wealth Management brings a proven history of experience and success helping both local Edwardsville, IL and national businesses set up and administer 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 across the U.S. (*as of January 2022)
How Correct Capital Adds Value to Company 401(k) Plans in Edwardsville, IL
Knowledgeable financial advisors understand the intricacies of company 401(k) plans in Edwardsville, IL and diligently seek avenues to enhance benefits for both the company and employees. With our dedication to a customer-focused approach, we offer special value to companies seeking to initiate or enhance their 401(k) plans:
Tailored Plan Selection In line with Your Company’s Particular Needs
Each company has its own group of goals, culture, employee demographics, and financial situations. At Correct Capital Wealth Management, we recognize this diversity and adapt 401(k) plan options to each of our clients' individual needs. By comprehending the intricacies of your business, we're able to craft a retirement plan that enhances growth potential for all involved.
Streamlined Administration and Continual Management
Administering a 401(k) plan can be heavy on administration. We streamline this process 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 Edwardsville, IL allows businesses to focus on what they do best, knowing their company 401(k) plan is in good hands.
Employee Learning and Participation Initiatives
A 401(k) plan is only as productive as its participation rate. We actively engage with employees, giving workshops, one-on-one meetings, and digital resources to inform them about what your company 401(k) plan can offer them. By clarifying financial concepts and emphasizing the relevance of early and consistent retirement savings, we aim to increase employee participation and trust in their retirement planning. With Correct Capital, your employees will have their very own Edwardsville, IL retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Edwardsville, IL
Traversing the details of 401(k) plans can frequently lead to questions. In our dedication to transparency and client education, we've assembled a list of frequently asked questions about company 401(k) plans in Edwardsville, IL:
- How are company 401(k) plans funded?
Company 401(k) plans are chiefly funded through elective salary deferrals made by employees. Additionally, 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) versus other retirement options?
Company 401(k) plans offer greater contribution limits relative to many other retirement options such as IRAs, as well as likely employer matching, loan provisions, and a greater variety of investment options. Additionally, contributions can be made through either traditional or Roth deferrals, giving greater tax flexibility for participants.
- How do employer matches work in a 401(k) plan?
Employers can offer matching 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, comprising yours and their contributions, cannot exceed a given 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 normally invested in a selection of options, largely 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 based on their risk tolerance and retirement planning needs.
- What are the fees related to 401(k) plans?
Fees can vary according to the plan provider, investments, or and if the company wants to pay 401k plan fees. Usual fees contain 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 approximately 1% of assets managed.
- What the key responsibilities of an employer offering a company 401(k) plan?
Employers are responsible for choosing and overseeing the plan provider, ensuring compliance with federal regulations, offering timely disclosures to employees, and sending employee contributions promptly. As your advisors for your company 401(k) plan in Edwardsville, IL, Correct Capital can take on a lot of the liability involved off your plate.
Other services we offer in Edwardsville, IL 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 Edwardsville, IL Today
The correct advice when offering your company 401(k) plan in Edwardsville, IL can make all the difference. Correct Capital Wealth Management, founded in Edwardsville, IL, 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 are not only compliant and optimized but also customized to meet the unique needs of your company and its employees. Set up an appointment with a member of our advisor team, reach out us at 877-930-4015, or contact us online to get started with your company 401(k) plans in Edwardsville, IL right away.
