Company 401(k) plans in Kirkwood, MO. Current economic conditions as well as a favorable job market for employees, two main concerns have emerged for many businesses: saving money and hiring and retaining talent . Establishing a 401(k) plan can help your company achieve both. Company 401(k) plans not only function as strong ways to save for retirement, but also highlight a business's devotion to their workers' long-term prosperity – all while offering savings for the company in the form of reduced taxes. In this way, company 401(k) plans are a pledge to a brighter tomorrow – both for your business and for its employees.
In a period inundated with financial products, solutions, and changing regulations, maneuvering through the retirement plan landscape is often daunting for many Kirkwood, MO business owners. Businesses need the insight of unbiased and independent financial advice in order to be on top of their game. That's where Correct Capital Wealth Management steps in. If you're considering creating a company 401(k) plan for your Kirkwood, MO business, or already have one and want to change it, call Correct Capital today at 877-930-4015, or fill out our online contact form.
The Basics and Benefits of Company 401(k) Plans
A 401(k) plan is a tax-advantaged, defined-contribution retirement account companies can offer to their employees. Named after a part of the U.S. Internal Revenue Code, these plans permit employees to put away and invest a portion of their paycheck before taxes are deducted (generally). Taxes aren't due until the money is taken out from the account, typically after retirement. For employers, matching contributions in company 401(k) plans are tax deductible.
The importance of a 401(k) plan goes beyond the direct tax benefits. For employees, it acts as a structured and disciplined way to get ready for retirement, commonly enhanced by employer contributions. For employers, offering a 401(k) demonstrates a dedication to the long-term financial health of their workers, functioning as an invaluable tool for hiring, retention, aand employee satisfaction.
Common Challenges Kirkwood, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan is often a great addition to your Kirkwood, MO business. However, creating, managing, and monitoring a 401(k) plan requires thorough thinking, clear strategy, and continuous commitment. Some of the most frequent challenges businesses meet include:
Choosing the Most Appropriate Plan
There are countless options available for businesses in search of company 401(k) plans. Companies must navigate these to determine 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 contribution structures all need to be considered.
Administration Complexities
Handling a 401(k) plan is an ongoing process. Starting from recordkeeping to ensuring timely contributions, the administrative responsibilities are substantial. Companies need to keep up with enrollment periods, distributions, loan provisions, and other nuances that come with plan management.
Ensuring Compliance with Regulations
401(k) plans are governed regulatory oversight, set chiefly 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 essential to avoid penalties and maintain the plan's tax-favored status.
Educating Employees on The Company 401(k) Plan
A 401(k) plan's success doesn't just hinge on its compliance; 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 implications of their investment choices. An educated employee is likely to engage actively and make decisions that coincide with their financial goals
The most effective way to address these common concerns is through partnering with a reliable Kirkwood, MO financial advisor who can help you understand the options available to you and your needs and customize a company 401(k) plan that works best for your Kirkwood, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Kirkwood, MO
Your company demands a partner in Kirkwood, MO who understands your distinct needs, drives data-based decision-making, and prioritizes what's in your best interest. Correct Capital Wealth Management is a reliable provider of custom 401(k) services in Kirkwood, MO for several companies. Here is what sets us apart:
- Fiduciary duty — At Correct Capital, we're fiduciary advisors. 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 bound to follow 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
- Maintain the confidentiality and protect the privacy of client information
- Conduct oneself in a manner that reflects positively on the financial planning profession
- Genuine independence — We're 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, unaffected by outside biases or incentives
- Established experience in company 401(k) plans — Correct Capital brings a track record of experience and success helping both local Kirkwood, MO and national businesses set up 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 throughout the country. (*as of January 2022)
How Correct Capital Adds Value to Company 401(k) Plans in Kirkwood, MO
Skilled financial advisors understand the nuances of company 401(k) plans in Kirkwood, MO and actively seek avenues to optimize benefits for both the company and employees. With our devotion to a client-centered approach, we offer distinctive value to companies seeking to set up or enhance their 401(k) plans:
Personalized Plan Selection Based on Your Company’s Unique Needs
Every company has its own set of goals, history, employee demographics, and financial situations. At Correct Capital Wealth Management, we acknowledge this diversity and adapt 401(k) plan options to satisfy these individual needs. By understanding what makes your business tick, we're able to create a retirement plan that optimizes growth potential for all involved.
Efficient Administration and Continuous Management
Handling a 401(k) plan can be heavy on administration. We streamline administrative tasks for you. We help keep tabs on how your team is keeping up with compliance checks, timely reporting, and more, and offer you our consultory services to ensure your administrative responsibility do not become burdensome. Working with an experienced 401(k) provider in Kirkwood, MO enables businesses to focus on their primary operations, knowing their company 401(k) plan is in good hands.
Employee Education and Involvement Initiatives
A 401(k) plan is only as productive as its participation rate. We actively engage with employees, offering sessions, one-on-one consultations, and electronic resources to inform them about what your company 401(k) plan can offer them. By demystifying financial concepts and underscoring the importance of early and consistent contributions, we endeavor to elevate 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 complexities of 401(k) plans can frequently lead to questions. In our dedication to clarity and client education, we've assembled a list of frequently asked questions about company 401(k) plans in Kirkwood, MO:
- How are company 401(k) plans funded?
Company 401(k) plans are mainly funded through elective salary deferrals from employees' paychecks. 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 do not count as taxable revenue.
- What are the benefits of a 401(k) compared to other retirement options?
Company 401(k) plans offer higher contribution limits than many other retirement options such as IRAs, as well as likely employer matching, loan provisions, and flexibility in investment choices. Additionally, 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 offer matching contributions up to a specific 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 specified limit ($66,000 in 2023, with an added $7,500 for people closer to retirement).
- How are 401(k) funds invested?
401(k) funds are normally invested in a range of options, primarily 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 based on their risk tolerance and financial goals.
- What are the fees connected to 401(k) plans?
Fees can vary depending on the plan provider, investments, or and if the company wants to pay 401k plan fees. Typical fees contain administrative and recordkeeping fees, individual service fees, and investment-related fees. Investment fees for passive (index) fund managers can greatly reduce certain fees. Fees generally range from .5% to 2%, and the average fee is about 1% of assets managed.
- What the key responsibilities of an employer providing a company 401(k) plan?
Employers are in charge of choosing and watching the plan provider, ensuring compliance with federal regulations, offering timely disclosures to employees, and sending employee contributions speedily. 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
Contact Correct Capital for Your Company 401(k) Plans in Kirkwood, MO Today
The appropriate guidance when providing your company 401(k) plan in Kirkwood, MO can make every bit of difference. Correct Capital Wealth Management, rooted in Kirkwood, MO, gives 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 are not only compliant and optimized but also bespoke to fulfill the unique needs of your business and its employees. Arrange an appointment with a member of our advisor team, call us at 877-930-4015, or contact us through our website to get started with your company 401(k) plans in Kirkwood, MO now.
