Company 401(k) plans in Kirkwood, MO. Given the ongoing economic conditions as well as a pro-employee job market, a couple of predominant issues have emerged for many businesses: saving money and attracting and retaining talent . Establishing a 401(k) plan can help your business achieve both of these objectives. Company 401(k) plans not only function as robust retirement saving tools, but also emphasize an organization's commitment to its employees' long-term economic health – all while providing savings for the company in the form of reduced taxes. Thus, company 401(k) plans stand as an investment in the future – both for the company and for its workers.
In a time overwhelmed with financial products, provisions, and shifting regulations, navigating the retirement savings landscape can be daunting for many Kirkwood, MO business owners. Companies need the knowledge of unbiased and independent financial guidance to be on top of their game. That's where Correct Capital Wealth Management enters the picture. If you're thinking of establishing a company 401(k) plan for your Kirkwood, MO business, or even currently have one and want to change it, contact Correct Capital now 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 companies extend to their employees. Named after a part of the U.S. Internal Revenue Code, these plans permit employees to put away and invest some of their paycheck before taxes are deducted (generally). Taxes aren't due until the money is withdrawn from the account, typically after retirement. For employers, matching contributions in company 401(k) plans can be deducted from the company's taxes.
The importance of a 401(k) plan goes beyond the immediate tax benefits. For employees, it represents a systematic and orderly way to plan for retirement, often supplemented by employer contributions. For employers, providing a 401(k) indicates a dedication to the long-term financial health of their workers, serving as a valuable tool for hiring, retention, aand employee satisfaction.
Common Challenges Kirkwood, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan can be a great addition to your Kirkwood, MO business. But, establishing, managing, and monitoring a 401(k) plan necessitates careful consideration, clear strategy, and persistent commitment. A few of the most frequent challenges businesses face include:
Choosing the Most Appropriate Plan
There are myriad options out there for businesses looking for company 401(k) plans. Companies must sift through these to ascertain which plan best aligns with their financial standing, business goals, and the needs of their employees. Factors such as plan type (e.g., traditional vs. Safe Harbor), investment options, and contribution structures all come into play.
Administration Difficulties
Managing a 401(k) plan is an ongoing process. From recordkeeping to ensuring timely contributions, the managerial responsibilities are substantial. Companies must keep up with enrollment periods, distributions, loan provisions, and other details that are associated with plan administration.
Ensuring Compliance with Regulations
401(k) plans are governed by strict regulations, set mainly 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 vital to avert penalties and keep the plan's tax-favored status.
Educating Employees on Their Benefits and Choices
A 401(k) plan's success doesn't merely hinge on its administration; your employees need to get on board and understand how it's benefited them. It's vital to teach employees about the benefits of participating in the plan, the nature of employer matching, and the implications of their investment choices. An educated employee is likely to participate actively and make decisions that match with their financial goals
The best way to allay these usual concerns teaming up with a dependable Kirkwood, MO financial advisor who will help you understand your options and your requirements and adapt a company 401(k) plan that is most effective for your Kirkwood, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Kirkwood, MO
Your business demands a partner in Kirkwood, MO who understands your unique needs, drives data-based decision-making, and keeps your interests at heart. Correct Capital Wealth Management is a dependable provider of custom 401(k) services in Kirkwood, MO for several companies. Here’s what we think makes us stand out:
- Fiduciary duty — At Correct Capital, we're held to a fiduciary duty. 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 adhere to 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 protect the privacy of client information
- Act in a manner that reflects well on the financial planning profession
- True independence — We are not bound by affiliations with financial products or institutions. Our independent stance ensures that our advice is solely centered around our professional opinion on what is best for your business, free from outside biases or incentives
- Demonstrated experience in company 401(k) plans — Correct Capital Wealth Management brings a track record of experience and success aiding both local Kirkwood, MO and national businesses establish 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 country. (*as of January 2022)
How Correct Capital Adds Value to Company 401(k) Plans in Kirkwood, MO
Experienced financial advisors understand the intricacies of company 401(k) plans in Kirkwood, MO and proactively seek avenues to optimize benefits for both the company and employees. With our dedication to a customer-focused approach, we offer unique value to companies looking to establish or enhance their 401(k) plans:
Personalized Plan Selection Based on Your Company’s Specific Needs
Each company has its own distinct set of goals, history, employee demographics, and financial situations. At Correct Capital Wealth Management, we understand this diversity and tailor 401(k) plan options to fulfill these individual needs. By understanding what makes your business tick, we're able to design a retirement plan that aligns business and employees' interests.
Efficient Administration and Ongoing Management
Managing a 401(k) plan can be administratively intensive. We simplify this process 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. Having an experienced 401(k) provider in Kirkwood, MO allows businesses to focus on what they do best, knowing their company 401(k) plan is in good hands.
Employee Education and Involvement Programs
A 401(k) plan is merely as productive as its participation rate. We proactively engage with employees, offering seminars, 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 faith in their retirement planning. With Correct Capital, your employees will have their very own Kirkwood, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Kirkwood, MO
Understanding the details of 401(k) plans can often lead to questions. In our commitment to transparency and client education, we've assembled a list of FAQs about company 401(k) plans in Kirkwood, MO:
- In what way are company 401(k) plans funded?
Company 401(k) plans are primarily funded through voluntary salary deferrals made by employees. Additionally, employers can choose to match a portion 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 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 options. Additionally, contributions can be made through both 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 particular percentage of the employee's salary. This match can be at an equal rate, 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 additional $7,500 for people closer to retirement).
- How are 401(k) funds invested?
401(k) funds are normally invested in a range of options, mostly 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 according to their risk tolerance and financial goals.
- What are the fees associated with 401(k) plans?
Fees can vary depending on the plan provider, investment choices, or and whether the company wants to pay 401k plan fees. Typical fees include administrative and recordkeeping fees, individual service fees, and investment-related fees. Investment fees for passive (index) fund managers can significantly reduce certain fees. Fees usually 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 in charge of selecting and monitoring the plan provider, ensuring compliance with federal regulations, offering timely disclosures to employees, and submitting employee contributions quickly. As your advisors for your company 401(k) plan in Kirkwood, MO, Correct Capital can take on much of the fiduciary duty included off your shoulders.
Other services we offer in Kirkwood, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
Call Correct Capital for Your Company 401(k) Plans in Kirkwood, MO Today
The right advice when providing your company 401(k) plan in Kirkwood, MO can make every bit of difference. Correct Capital Wealth Management, founded in Kirkwood, MO, provides 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 adapted to fulfill the unique needs of your company and its employees. Schedule an appointment with one of our financial advisors, call us at 877-930-4015, or contact us through our website to get started with your company 401(k) plans in Kirkwood, MO right away.
