Company 401(k) plans in Ellisville, MO. Given the ongoing economic conditions as well as a favorable job market for employees, two main concerns have risen to the top of the majority of Ellisville, MO businesses' lists: reducing costs and attracting and retaining productive workers . Establishing a 401(k) plan can help you accomplish both. Company 401(k) plans not only act as strong retirement saving tools, but also highlight a company's dedication to its staff's long-term financial health – all while delivering savings for the company in the form of reduced taxes. Therefore, company 401(k) plans stand as a commitment to the future – both for the company and for its team members.
In an era inundated with financial products, solutions, and changing regulations, navigating the retirement plan landscape can be overwhelming for many Ellisville, MO business owners. Businesses need the insight of unbiased and independent financial advice to be on top of their game. That's where Correct Capital Wealth Management enters the picture. If you're thinking of setting up a company 401(k) plan for your Ellisville, MO business, or even currently have one and want to modify it, contact Correct Capital today at 877-930-4015, or contact us online.
Company 401(k) Plans Explained
A 401(k) plan is a tax-advantaged, defined-contribution retirement account employers 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 taken out (generally). Taxes aren't due until the money is taken out from the account, usually once an employee hits retirement. For employers, matching contributions in company 401(k) plans are tax deductible.
The relevance of a 401(k) plan surpasses the current tax benefits. For employees, it acts as a structured and disciplined way to prepare for retirement, commonly boosted by employer matches. For employers, providing a 401(k) shows a commitment to the long-term financial well-being of their workers, acting as a valuable tool for hiring, retention, aand employee contentment.
Common Challenges Ellisville, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan has been a boon for many Ellisville, MO businesses. However, establishing, managing, and optimizing a 401(k) plan demands thorough thinking, clear strategy, and persistent commitment. Several of the most common challenges businesses face include:
Selecting the Most Appropriate Plan
There are numerous options available for businesses in search of company 401(k) plans. Companies have to navigate 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 contribution structures are all crucial.
Administration Complexities
Administering a 401(k) plan is not a one-time endeavor. Starting 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 are associated with 401(k) administration.
Ensuring Compliance with Regulations
401(k) plans are governed by stringent regulations, set primarily by the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Service (IRS). Being current with these regulations and ensuring you don't break the rules is absolutely essential 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 just hinge on its administration; your employees have to be invested and understand the value it gives them. It's vital to teach employees about the benefits of participating in the plan, how matching contributions work, and the investment options available to them. An educated employee is likely to engage actively and make decisions that align with their financial goals
The best way to address these usual concerns is through partnering with a trusted Ellisville, MO financial advisor that can help you understand the options available to you and your needs and adapt 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 business demands a partner in Ellisville, MO that understands your unique needs, offers clarity in decision-making, and keeps your interests at heart. Correct Capital is a reliable provider of custom 401(k) services in Ellisville, MO for several companies. Here’s what we think makes us different:
- Fiduciary duty — At Correct Capital, we are fiduciary advisors. Meaning, we're both 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 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
- Keep 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 tied down by partnerships 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
- Proven experience in company 401(k) plans — Correct Capital Wealth Management brings an established history of experience and success aiding both local Ellisville, MO and national businesses establish and administer their company 401(k) plans. Our financial advisors are currently managing 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 Ellisville, MO
Experienced financial advisors understand the nuances of company 401(k) plans in Ellisville, MO and proactively seek avenues to enhance benefits for both the company and employees. With our dedication to a customer-focused approach, we offer distinctive value to companies looking to initiate or enhance their 401(k) plans:
Personalized Plan Selection In line with Your Company’s Unique Needs
Every company has its very own group of goals, history, employee demographics, and financial situations. At Correct Capital, we understand this diversity and tailor 401(k) plan options to satisfy these individual needs. By understanding what makes your business tick, we're able to design a retirement plan that enhances growth potential for all involved.
Simplified Administration and Continual Management
Dealing with a 401(k) plan can be administratively intensive. We streamline this process for you. We help keep tabs on how your office 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. Having an experienced 401(k) provider in Ellisville, MO enables businesses to focus on their main operations, knowing their company 401(k) plan is in good hands.
Employee Instruction and Engagement Programs
A 401(k) plan is just as productive as its participation rate. We actively communicate with employees, giving workshops, one-on-one consultations, and electronic resources to enlighten them about their retirement benefits. By demystifying financial concepts and emphasizing the importance of early and consistent contributions, we endeavor to elevate 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 details of 401(k) plans can often lead to 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 Ellisville, MO:
- In what way are company 401(k) plans funded?
Company 401(k) plans are chiefly funded through elective salary deferrals made by employees. 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 advantages of a 401(k) over other retirement options?
Company 401(k) plans offer greater contribution limits relative to many other retirement options such as IRAs, as well as potential employer matching, loan provisions, and a greater variety of investment choices. Moreover, contributions can be made through either traditional or Roth deferrals, giving greater tax flexibility to your employees.
- How do employer matches work in a 401(k) plan?
Employers can offer matching contributions up to a specific percentage of the employee's pay. This match can be dollar for dollar, or a different ratio, and the employee's total contribution, encompassing 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 variety of options, largely 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 according to their risk tolerance and retirement planning needs.
- What are the fees related 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 consist of administrative and recordkeeping fees, individual service fees, and investment-related fees. Investment fees for passive (index) fund managers can greatly reduce investment cost. Fees usually range from .5% to 2%, and the average fee is around 1% of assets managed.
- What the key responsibilities of an employer offering a company 401(k) plan?
Employers are responsible for picking and watching the plan provider, ensuring compliance with federal regulations, providing timely disclosures to employees, and sending employee contributions speedily. As your advisors for your company 401(k) plan in Ellisville, MO, Correct Capital can take on a lot of the fiduciary duty included off your shoulders.
Other services we offer in Ellisville, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
Reach out to Correct Capital for Your Company 401(k) Plans in Ellisville, MO Today
The appropriate advice when providing your company 401(k) plan in Ellisville, MO can make all the difference. Correct Capital Wealth Management, rooted in Ellisville, MO, gives fiduciary responsibility and our I.O.U. promise: all the advice we provide will be independent, objective, and unbiased. By teaming up with Correct Capital, you ensure that your company's retirement benefits are not only compliant and optimized but also tailored to meet the unique needs of your company and its employees. Arrange a meeting 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 Ellisville, MO today.
