Company 401(k) plans in Frontenac, MO. Current inflation levels as well as an employee-friendly job market, two primary worries have emerged for many businesses: cost-saving and attracting and retaining high performers . Creating a 401(k) plan can help your business accomplish both these goals. Company 401(k) plans not only serve as strong ways to save for retirement, but also highlight an organization's dedication to their workers' long-term prosperity – all while providing desired tax breaks. In this way, company 401(k) plans are a pledge to a brighter tomorrow – both for the company and for its employees.
In a period inundated with financial products, solutions, and shifting regulations, maneuvering through the retirement plan landscape is often daunting for many Frontenac, MO business owners. Companies need the knowledge of impartial and independent financial advice to be at their best. That's where Correct Capital Wealth Management steps in. If you're thinking of creating a company 401(k) plan for your Frontenac, MO business, or even already have one and want to change it, reach out to Correct Capital today at 877-930-4015, or fill out our online contact form.
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 section of the U.S. Internal Revenue Code, these plans allow employees to set aside and invest part of their paycheck before taxes are taken out (generally). Taxes are not due until the money is taken out from the account, typically 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 goes beyond the current tax benefits. For employees, it represents a systematic and disciplined way to get ready for retirement, often boosted by employer matches. For employers, providing a 401(k) shows a dedication to the long-term financial health of their employees, acting as a valuable tool for hiring, retention, aand employee engagement.
Common Challenges Frontenac, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan is often a great addition to your Frontenac, MO business. Nonetheless, creating, overseeing, and monitoring a 401(k) plan demands meticulous planning, clear strategy, and persistent commitment. Several of the most frequent challenges businesses encounter include:
Picking the Correct Plan
There are numerous options out there for businesses searching for company 401(k) plans. Companies need to sift through these to decide which plan most aligns with the futures of both their business and 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 isn't a one-time task. From recordkeeping through to ensuring timely contributions, the administrative responsibilities are substantial. Companies have to stay on top of enrollment periods, distributions, loan provisions, and other intricacies that accompany plan management.
Remaining Compliant 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 absolutely essential to prevent penalties and sustain the plan's tax-favored status.
Educating Employees on The Company 401(k) Plan
A 401(k) plan's success doesn't merely depend on its administration; your employees have to buy in and understand the value it provides them. It's imperative to teach employees about the benefits of enrolling, how matching contributions work, and the implications of their investment choices. An informed employee is likely to engage actively and make decisions that match with their financial goals
The best way to allay these common concerns is by collaborating with a trusted Frontenac, MO financial advisor who will help you understand your options and your requirements and tailor a company 401(k) plan that works best for your Frontenac, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Frontenac, MO
Your company requires a partner in Frontenac, MO that understands your unique needs, provides clarity in decision-making, and prioritizes what's in your best interest. Correct Capital is a reliable provider of custom 401(k) services in Frontenac, MO for several companies. Here is what makes us apart:
- Fiduciary duty — At Correct Capital Wealth Management, we're fiduciary advisors. We’re both legally and ethically committed to act in your best interest. As fiduciary advisors and CERTIFIED FINANCIAL PLANNER™ professionals, we are legally bound to abide by 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
- Maintain the confidentiality and protect the privacy of client information
- Act in a manner that reflects favorably on the financial planning profession
- True independence — We are not tied down 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 external 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 Frontenac, MO and national businesses establish and administer 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 country. (*as of January 2022)
How Correct Capital Adds Value to Company 401(k) Plans in Frontenac, MO
Experienced financial advisors understand the intricacies of company 401(k) plans in Frontenac, MO and diligently seek avenues to optimize benefits for both the company and employees. With our devotion to a customer-focused approach, we offer unique value to companies looking to set up or enhance their 401(k) plans:
Tailored Plan Selection According to Your Company’s Unique Needs
Every company has its own set of goals, history, employee demographics, and financial situations. At Correct Capital, we understand this diversity and tailor 401(k) plan options to fulfill these individual needs. By grasping what makes your business tick, we're able to design a retirement plan that optimizes growth potential for all involved.
Streamlined Administration and Continual Management
Handling a 401(k) plan can be administratively intensive. We streamline administrative tasks for you. We help monitor how your team is keeping up with compliance checks, punctual reporting, and more, and offer you our consultory services to ensure the administrative duties that come with a 401(k) plan are not burdensome. Having an experienced 401(k) provider in Frontenac, MO lets businesses to focus on their main operations, knowing their company 401(k) plan is in good hands.
Employee Instruction and Participation Initiatives
A 401(k) plan is only as effective as its participation rate. We proactively interact with employees, giving workshops, one-on-one meetings, and digital resources to enlighten them about what your company 401(k) plan can offer them. By clarifying financial concepts and underscoring the significance of early and consistent 401(k) savings, we strive to increase employee participation and faith in their retirement planning. With Correct Capital, your employees will have their very own Frontenac, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Frontenac, MO
Traversing the intricacies of 401(k) plans can frequently lead to questions. In our commitment to transparency and client education, we've assembled a list of frequently asked questions about company 401(k) plans in Frontenac, MO:
- How are company 401(k) plans funded?
Company 401(k) plans are primarily funded through voluntary 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 business funds and do not count as taxable revenue.
- What are the benefits of a 401(k) against other retirement options?
Company 401(k) plans offer higher contribution limits relative to many other retirement options such as IRAs, as well as possible employer matching, loan provisions, and a greater variety of investment options. Furthermore, contributions can be made through either traditional or Roth deferrals, providing greater tax flexibility for participants.
- How do employer matches work in a 401(k) plan?
Employers can offer matching contributions up to a certain percentage of the employee's salary. This match can be one-to-one, or a different ratio, and the employee's total contribution, encompassing yours and their contributions, cannot exceed a specified limit ($66,000 in 2023, with an additional $7,500 for "catch-up" contributions).
- How are 401(k) funds invested?
401(k) funds are typically invested in a variety 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 oversee the specific investment choices, and employees can customize their portfolios according to their risk tolerance and financial goals.
- What are the fees related to 401(k) plans?
Fees depend largely on the plan provider, investments, or and whether 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 significantly reduce certain fees. Fees typically 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 submitting employee contributions promptly. As your advisors for your company 401(k) plan in Frontenac, MO, Correct Capital can take on much of the liability involved off your plate.
Other services we offer in Frontenac, 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 Frontenac, MO Today
The appropriate guidance when offering your company 401(k) plan in Frontenac, MO can make every bit of difference. Correct Capital Wealth Management, founded in Frontenac, MO, offers fiduciary responsibility and our I.O.U. promise: all the advice we provide will be independent, objective, and unbiased. By partnering with Correct Capital, you ensure that your company's retirement benefits aren't merely compliant and optimized but also bespoke to fulfill the unique needs of your company and its employees. Arrange an appointment with one of our financial advisors, call us at 877-930-4015, or contact us online to get started with your company 401(k) plans in Frontenac, MO now.
