Company 401(k) plans in Fenton, MO. With the present inflation rates and a favorable job market for employees, a couple of predominant issues have risen to the forefront of the majority of Fenton, MO companies' lists: reducing costs and hiring and retaining talent . Establishing a 401(k) plan can help your business achieve both of these objectives. Company 401(k) plans not only serve as strong retirement saving tools, but also emphasize a business's devotion to its staff's long-term prosperity – all while providing much needed tax reductions. Thus, company 401(k) plans stand as an investment in the future – both for your business and for its workers.
In an era overwhelmed with financial products, services, and shifting regulations, maneuvering through the retirement plan landscape can be overwhelming for many Fenton, MO business owners. Businesses need the insight of objective and independent financial advice to be at their best. That's where Correct Capital Wealth Management enters the picture. If you are considering setting up a company 401(k) plan for your Fenton, MO business, or even already have one and want to modify it, reach out to 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
The Basics and Benefits of Company 401(k) Plans
A 401(k) plan is a tax-advantaged, defined-contribution retirement account employers provide to their employees. Titled after a part of the U.S. Internal Revenue Code, these plans permit employees to set aside and invest part of their paycheck before taxes are taken out (generally). Taxes are not paid until the money is withdrawn from the account, usually once an employee hits retirement.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 systematic and disciplined way to plan for retirement, often supplemented by employer matches. For employers, offering a 401(k) demonstrates 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 Fenton, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan is often a great addition to your Fenton, MO business. Nonetheless, creating, handling, and refining a 401(k) plan necessitates meticulous planning, clear strategy, and continuous commitment. Some of the most prevalent challenges businesses encounter include:
Choosing the Right Plan
There are countless options available for businesses looking for company 401(k) plans. Companies have to navigate these to determine which plan most aligns with their financial situation, business goals, and the needs of their employees. Factors such as plan type (for example, traditional vs. Safe Harbor), investment options, and matching contribution percentages all come into play.
Administration Difficulties
Handling a 401(k) plan is an ongoing process. Beginning with regular documentation to ensuring timely contributions, the managerial responsibilities are substantial. Companies must keep up with enrollment periods, distributions, loan provisions, and other intricacies that come with plan 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). Staying up with these regulations and ensuring you don't break the rules is absolutely vital to prevent penalties and keep the plan's tax-favored status.
Educating Employees on Their Benefits and Choices
A 401(k) plan's success doesn't only hinge on its establishment; your employees have to get on board and understand the value it offers them. It's imperative to teach employees about the advantages of enrolling, the nature of employer matching, and the investment options available to them. An informed employee is more likely to use the plan for all it's worth
The best way to address these frequent concerns collaborating with a reliable Fenton, MO financial advisor who will help you understand the options available to you and your needs and tailor a company 401(k) plan that is most effective for your Fenton, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Fenton, MO
Your business demands a partner in Fenton, MO who understands your unique needs, drives data-based decision-making, and prioritizes what's in your best interest. Correct Capital stands as a trusted provider of custom 401(k) services in Fenton, MO for numerous companies. Here’s what sets us apart:
- 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 abide by 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 safeguard the privacy of client information
- Act in a manner that reflects well on the financial planning profession
- Real independence — We are not tied down by partnerships with financial products or institutions. Our independent stance ensures that our advice is solely founded on what we believe is best for your business, free from outside biases or incentives
- Demonstrated experience in company 401(k) plans — Correct Capital brings an established history of experience and success assisting both local Fenton, MO and national businesses create and manage their company 401(k) plans. We currently manage over 30 plans in both small and large companies, and represent 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 Fenton, MO
Knowledgeable financial advisors understand the intricacies of company 401(k) plans in Fenton, MO and proactively seek avenues to optimize benefits for both the company and employees. With our dedication to a customer-focused approach, we offer special value to companies seeking to establish or enhance their 401(k) plans:
Tailored Plan Selection According to Your Company’s Particular Needs
Each company has its own distinct group of goals, history, employee demographics, and financial situations. At Correct Capital, we recognize this diversity and adapt 401(k) plan options to each of our clients' individual needs. By understanding what makes your business tick, we're able to craft a retirement plan that enhances growth potential for all involved.
Simplified Administration and Continual Management
Managing 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 your administrative responsibility are not burdensome. Working with an experienced 401(k) provider in Fenton, MO allows businesses to focus on their core operations, knowing their company 401(k) plan is in good hands.
Employee Learning and Engagement Programs
A 401(k) plan is merely as effective as its participation rate. We proactively engage with employees, offering workshops, one-on-one consultations, and online resources to enlighten them about their retirement benefits. By demystifying financial concepts and underscoring the relevance of early and consistent contributions, we endeavor to boost employee participation and trust 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
Traversing the intricacies of 401(k) plans can frequently lead to concerns. In our dedication to openness and client education, we've assembled a list of FAQs about company 401(k) plans in Fenton, MO:
- How are company 401(k) plans funded?
Company 401(k) plans are mainly funded through elective 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 are tax-deductible.
- 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 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 for participants.
- 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 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 set 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 usually invested in a range of options, mostly 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 monitor the specific investment choices, and employees can customize their portfolios according to their risk tolerance and financial goals.
- What are the fees connected to 401(k) plans?
Fees can vary according to 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 certain fees. Fees usually 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 accountable for picking and monitoring the plan provider, ensuring compliance with federal regulations, offering timely disclosures to employees, and remitting employee contributions quickly. As your advisors for your company 401(k) plan in Fenton, MO, Correct Capital can take on a great deal of the liability involved off your plate.
Other services we offer in Fenton, MO include:
Call Correct Capital for Your Company 401(k) Plans in Fenton, MO Today
The right direction when offering your company 401(k) plan in Fenton, MO can make every bit of difference. Correct Capital Wealth Management, rooted in Fenton, MO, gives 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 are not only compliant and optimized but also adapted to satisfy the unique needs of your business and its employees. Set up a meeting with one of our financial advisors, reach out us at 877-930-4015, or contact us online to get started with your company 401(k) plans in Fenton, MO now.
