Company 401(k) plans in Fenton, MO. Given the ongoing inflation levels and a pro-employee job market, two main concerns have emerged for many businesses: saving money and hiring and retaining high performers . Setting up a 401(k) plan could help your business achieve both. Company 401(k) plans not only function as robust tools for retirement savings, but also highlight an organization's commitment to their workers' long-term financial well-being – all while providing much needed tax benefits. In this way, company 401(k) plans are an investment in the future – both for your business and for its workers.
In a time inundated with financial products, provisions, and evolving regulations, navigating the retirement plan landscape is often overwhelming for many Fenton, MO business owners. Businesses need the knowledge of unbiased and independent financial advice in order to be on top of their game. That's where Correct Capital Wealth Management comes into play. If you are considering creating a company 401(k) plan for your Fenton, MO business, or even currently have one and want to alter it, call 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 businesses can offer to their employees. Titled after a section of the U.S. Internal Revenue Code, these plans enable employees to set aside 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 Taxes aren't due until the money is withdrawn from the account, generally once an employee hits retirement.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 can be deducted from the company's taxes.
The relevance of a 401(k) plan surpasses the direct tax benefits. For employees, it function as a structured and disciplined way to plan for retirement, often 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 valuable tool for hiring, retention, aand employee engagement.
Common Challenges Fenton, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan can be a great addition to your Fenton, MO business. However, creating, managing, and monitoring a 401(k) plan necessitates thorough thinking, clear strategy, and continuous commitment. A few of the most frequent challenges businesses face include:
Selecting the Correct Plan
There are myriad options out there for businesses looking for company 401(k) plans. Companies must navigate these to ascertain which plan most 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 all need to be considered.
Administration Complexities
Handling a 401(k) plan isn't a singular endeavor. Beginning with regular documentation 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 401(k) management.
Staying 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.
Teaching Employees About The Company 401(k) Plan
A 401(k) plan's success doesn't merely depend on its administration; your employees have to get on board and understand how it's benefited them. It's crucial to inform employees about the advantages of participating in the plan, the nature of employer matching, and the investment options available to them. An informed employee is likely to engage actively and make decisions that align with their financial goals
The best way to mitigate these common concerns is through partnering with a trusted Fenton, MO financial advisor who will help you understand the options available to you and your needs and adapt a company 401(k) plan that works best for your Fenton, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Fenton, MO
Your business needs a partner in Fenton, MO who understands your distinct needs, provides clarity in decision-making, and prioritizes what's in your best interest. Correct Capital stands as a reliable provider of custom 401(k) services in Fenton, MO for numerous companies. Here is what we think makes us stand out:
- Fiduciary duty — At Correct Capital, we are bound by a fiduciary duty. Meaning, we're 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:
- 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
- Maintain the confidentiality and safeguard the privacy of client information
- Behave in a manner that reflects well on the financial planning profession
- Genuine independence — We're not constrained by partnerships with financial products or institutions. Our independent stance ensures that our advice is purely centered around what we believe is best for your business, unaffected by outside biases or incentives
- Demonstrated experience in company 401(k) plans — Correct Capital Wealth Management brings a track record of experience and success assisting both local Fenton, MO and national businesses set up and manage their company 401(k) plans. Our retirement consultants are currently managing 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 Fenton, MO
Experienced financial advisors understand the intricacies of company 401(k) plans in Fenton, MO and diligently seek avenues to optimize benefits for both the business and employees. With our commitment to a client-centered approach, we offer special value to companies seeking to initiate or enhance their 401(k) plans:
Tailored Plan Selection According to Your Company’s Specific Needs
Each company has its very own group of goals, history, employee demographics, and financial situations. At Correct Capital, we recognize this diversity and tailor 401(k) plan options to satisfy these individual needs. By grasping the nuances of your business, we're able to create a retirement plan that optimizes growth potential for all involved.
Simplified Administration and Ongoing Management
Managing a 401(k) plan can be administratively intensive. We streamline administrative tasks for you. We help monitor how your office 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. Having an experienced 401(k) provider in Fenton, MO enables businesses to focus on their main operations, knowing their company 401(k) plan is in good hands.
Employee Instruction and Involvement Efforts
A 401(k) plan is merely as productive as its participation rate. We proactively interact with employees, giving sessions, one-on-one consultations, and online resources to inform them about what your company 401(k) plan can offer them. By demystifying financial concepts and highlighting the significance of early and consistent retirement savings, we strive to elevate employee participation and faith in their retirement planning. With Correct Capital, your employees will have their very own Fenton, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Fenton, MO
Understanding the complexities of 401(k) plans can frequently result in doubts. In our dedication to transparency and client education, we've compiled a list of frequently asked questions about company 401(k) plans in Fenton, MO:
- In what way are company 401(k) plans funded?
Company 401(k) plans are chiefly funded through voluntary salary deferrals made by employees. Moreover, employers can choose to match a segment 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, together with likely employer matching, loan provisions, and a greater variety of investment options. Furthermore, contributions can be made through either traditional or Roth deferrals, offering 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 certain 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 additional $7,500 for "catch-up" contributions).
- How are 401(k) funds invested?
401(k) funds are usually invested in a variety of options, largely involving mutual funds, such as 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 depending on their risk tolerance and financial goals.
- What are the fees related to 401(k) plans?
Fees can vary according to the plan provider, investments, or and whether 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 significantly reduce investment cost. Fees typically 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 responsible for selecting and watching 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 Fenton, MO, Correct Capital can take on much of the liability involved off your shoulders.
Other services we offer in Fenton, 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 Fenton, MO Today
The correct direction when offering your company 401(k) plan in Fenton, MO can make all the difference. Correct Capital Wealth Management, rooted in Fenton, MO, gives fiduciary responsibility and our I.O.U. promise: all the advice we offer 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 customized to satisfy the unique needs of your business and its employees. Schedule an appointment 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 Fenton, MO now.
