Company 401(k) plans in Ellisville, MO. With the present inflation levels as well as a pro-employee job market, two main concerns have emerged for many businesses: saving money and hiring and retaining high performers . Establishing a 401(k) plan can help your business achieve both of these objectives. Company 401(k) plans not only act as strong tools for retirement savings, but also emphasize a company's devotion to their workers' long-term economic health – all while delivering savings for the company in the form of reduced taxes. Therefore, company 401(k) plans stand as an investment in a brighter tomorrow – both for the company and for its workers.
In a period overwhelmed with financial products, solutions, and changing regulations, maneuvering through the retirement planning landscape can be daunting for many Ellisville, MO business owners. Businesses need the insight of impartial and independent financial advice to be on top of their game. That's where Correct Capital Wealth Management comes into play. If you are thinking of creating a company 401(k) plan for your Ellisville, MO business, or even already have one and want to change it, contact Correct Capital today at 877-930-4015, or fill out our online contact form.
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 employers can offer to their employees. Named after a part of the U.S. Internal Revenue Code, these plans enable employees to put away and invest a portion of their paycheck before taxes are deducted (generally). Taxes are not paid until the money is taken out from the account, generally once an employee hits retirement. For employers, matching contributions in company 401(k) plans are considered tax deductible.
The importance of a 401(k) plan surpasses the direct tax benefits. For employees, it function as a well-organized and disciplined way to get ready for retirement, often supplemented by employer contributions. For employers, providing a 401(k) shows a dedication to the long-term financial health of their staff, acting as a crucial tool for recruitment, retention, aand employee satisfaction.
Common Challenges Ellisville, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan is often a fantastic addition to your Ellisville, MO business. But, establishing, managing, and monitoring a 401(k) plan requires thorough thinking, clear strategy, and persistent commitment. Several of the most prevalent challenges businesses meet include:
Picking the Correct Plan
There are myriad options out there for businesses looking for company 401(k) plans. Companies need to sort through these to determine which plan best aligns with the futures of both their business and employees. Factors such as plan type (for example, traditional vs. Safe Harbor), investment options, and matching contribution percentages are all crucial.
Administration Difficulties
Administering a 401(k) plan is an ongoing process. Beginning with recordkeeping through to ensuring timely contributions, the administrative responsibilities can be substantial. Companies need to stay on top of enrollment periods, distributions, loan provisions, and other nuances that are associated with 401(k) administration.
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). Keeping up with these regulations and ensuring consistent compliance is vital to prevent penalties and maintain the plan's tax-advantaged status.
Teaching Employees About The Company 401(k) Plan
A 401(k) plan's success doesn't merely depend on its establishment; your employees have to get on board and understand how it's benefited them. It's crucial to teach employees about the benefits of enrolling, the nature of employer matching, and the implications of their investment choices. An educated employee is likely to participate actively and make decisions that align with their financial goals
The most effective way to allay these frequent concerns is through teaming up with a trusted Ellisville, MO financial advisor who will help you understand your options and your requirements and customize a company 401(k) plan that is most effective for your Ellisville, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Ellisville, MO
Your company demands a partner in Ellisville, MO who understands your distinct 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 Ellisville, MO for many companies. Here’s what we think makes us different:
- Fiduciary duty — At Correct Capital, 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 obligated to abide by a Code of Ethics and Standards of Conduct, in which we must:
- Act with 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're not constrained by partnerships with financial products or institutions. Our independent stance ensures that our advice is solely centered around what we believe is best for your business, unaffected by external biases or incentives
- Proven experience in company 401(k) plans — Correct Capital Wealth Management brings a track record of experience and success helping both local Ellisville, MO and national businesses establish and manage 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 across the U.S. (*as of January 2022)
How Correct Capital Adds Value to Company 401(k) Plans in Ellisville, MO
Skilled financial advisors understand the nuances of company 401(k) plans in Ellisville, MO and diligently seek avenues to optimize benefits for both the employer and employees. With our dedication to a customer-focused approach, we offer distinctive value to companies looking to set up or enhance their 401(k) plans:
Customized Plan Selection In line with Your Company’s Specific Needs
Every company has its very own set of goals, culture, employee demographics, and financial situations. At Correct Capital Wealth Management, we acknowledge this diversity and tailor 401(k) plan options to satisfy these individual needs. By understanding what makes your business tick, we're able to craft a retirement plan that aligns business and employees' interests.
Efficient Administration and Continual Management
Administering a 401(k) plan can be heavy on administration. We simplify administrative tasks 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 the administrative duties that come with a 401(k) plan are not burdensome. Working with an experienced 401(k) provider in Ellisville, MO enables 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 just as productive as its participation rate. We proactively communicate with employees, providing seminars, one-on-one meetings, and electronic resources to educate them about their retirement benefits. By demystifying financial concepts and underscoring the significance of early and consistent retirement savings, we aim to boost employee participation and trust in their retirement planning. With Correct Capital, your employees will have their very own Ellisville, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Ellisville, MO
Navigating the intricacies of 401(k) plans can often result in questions. In our commitment to clarity and client education, we've assembled a list of frequently asked questions about company 401(k) plans in Ellisville, MO:
- In what way are company 401(k) plans funded?
Company 401(k) plans are chiefly funded through voluntary salary deferrals from employees' paychecks. Moreover, employers can choose to match a part 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 higher contribution limits compared to many other retirement options such as IRAs, together with potential employer matching, loan provisions, and flexibility in investment choices. Furthermore, contributions can be made through both traditional or Roth deferrals, giving 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 pay. 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 "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 financial goals.
- What are the fees connected to 401(k) plans?
Fees depend largely on the plan provider, investments, or and if the company wants to pay 401k plan fees. Typical fees consist of administrative and recordkeeping fees, individual service fees, and investment-related fees. Investment fees for passive (index) fund managers can greatly reduce certain fees. Fees generally 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 monitoring the plan provider, ensuring compliance with federal regulations, providing timely disclosures to employees, and remitting employee contributions quickly. As your advisors for your company 401(k) plan in Ellisville, MO, Correct Capital can take on much of the fiduciary duty included off your plate.
Other services we offer in Ellisville, MO include:
Call Correct Capital for Your Company 401(k) Plans in Ellisville, MO Today
The correct advice when offering your company 401(k) plan in Ellisville, MO can make every bit of difference. Correct Capital Wealth Management, based in Ellisville, MO, offers fiduciary responsibility and our I.O.U. promise: all the advice we give will be independent, objective, and unbiased. By teaming up with Correct Capital, you ensure that your company's retirement benefits aren't merely compliant and optimized but also customized to satisfy the unique needs of your business and its employees. Schedule a meeting with a member of our advisor team, call us at 877-930-4015, or contact us online to get started with your company 401(k) plans in Ellisville, MO now.
