Company 401(k) plans in Lake St. Louis, MO. Current inflation levels as well as a pro-employee job market, two primary worries have climbed to the forefront of the majority of Lake St. Louis, MO businesses' priorities: reducing costs and hiring and retaining high performers . Creating a 401(k) plan could help your company accomplish both of these objectives. Company 401(k) plans not only act as strong tools for retirement savings, but also highlight an organization's dedication to their workers' long-term financial well-being – all while providing savings for the company in the form of reduced taxes. Thus, company 401(k) plans are an investment in a brighter tomorrow – both for the company and for its workers.
In a time inundated with financial products, provisions, and changing regulations, navigating the retirement planning landscape can be daunting for many Lake St. Louis, MO business owners. Companies need the wisdom of unbiased and independent financial advice in order to be at their best. That's where Correct Capital Wealth Management comes into play. If you are thinking of setting up a company 401(k) plan for your Lake St. Louis, MO business, or 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.
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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.
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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 permit employees to put away and invest some of their paycheck before taxes are taken out (generally). Taxes are not paid until the money is taken out from the account, usually after retirement. For employers, matching contributions in company 401(k) plans are tax deductible.
The importance of a 401(k) plan goes beyond the immediate tax benefits. For employees, it represents a well-organized and disciplined way to prepare for retirement, commonly boosted by employer matches. For employers, offering a 401(k) shows a dedication to the long-term economic stability of their staff, serving as an invaluable tool for recruitment, retention, aand employee happiness.
Common Challenges Lake St. Louis, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan has been a boon for many Lake St. Louis, MO businesses. But, establishing, managing, and refining a 401(k) plan demands thorough thinking, clear strategy, and persistent commitment. Some of the most common challenges businesses meet include:
Selecting the Best Plan
There are myriad options available for businesses looking for company 401(k) plans. Companies must sort through these to determine which plan most aligns with their financial standing, business goals, and the needs of their employees. Factors such as plan type (for example, traditional vs. Safe Harbor), investment options, and matching contribution amounts are all crucial.
Administration Complexities
Administering a 401(k) plan is an ongoing process. From recordkeeping to ensuring timely contributions, the administrative responsibilities can be substantial. Companies must 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 primarily 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 absolutely crucial to avoid penalties and maintain the plan's tax-advantaged status.
Educating Employees on The Company 401(k) Plan
A 401(k) plan's success doesn't merely depend on its establishment; your employees need to get on board and understand how it's benefited 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 educated employee is more likely to use the plan for all it's worth
The most effective way to allay these common concerns is through partnering with a dependable Lake St. Louis, MO financial advisor that can help you understand your options and your requirements and customize a company 401(k) plan that works best for your Lake St. Louis, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Lake St. Louis, MO
Your company needs a partner in Lake St. Louis, MO who understands your unique needs, drives data-based decision-making, and prioritizes what's in your best interest. Correct Capital Wealth Management is a dependable provider of custom 401(k) services in Lake St. Louis, MO for numerous companies. Here’s what sets us apart:
- Fiduciary duty — At Correct Capital Wealth Management, we are held to a fiduciary duty. Meaning, we're both legally and ethically bound 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:
- 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 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 partnerships with financial products or institutions. Our independent stance ensures that our advice is solely founded on our professional opinion on what is best for your business, free from outside biases or incentives
- Proven experience in company 401(k) plans — Correct Capital Wealth Management brings a track record of experience and success helping both local Lake St. Louis, MO and national businesses create and administer their company 401(k) plans. Our team is currently managing over 30 plans in companies of all sizes, and handle 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 Lake St. Louis, MO
Skilled financial advisors understand the nuances of company 401(k) plans in Lake St. Louis, MO and actively seek avenues to optimize benefits for both the employer and employees. With our commitment to a customer-focused approach, we offer special value to companies looking to set up or enhance their 401(k) plans:
Personalized Plan Selection Based on Your Company’s Specific Needs
Each company has its own set of goals, history, employee demographics, and financial situations. At Correct Capital Wealth Management, we acknowledge this diversity and customize 401(k) plan options to each of our clients' individual needs. By understanding the intricacies of your business, we're able to craft a retirement plan that aligns business and employees' interests.
Efficient Administration and Continuous Management
Administering a 401(k) plan can be loaded with administrative tasks. We streamline administrative tasks for you. We help keep tabs on how your office is staying updated with compliance checks, punctual 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 Lake St. Louis, MO allows businesses to focus on their core operations, knowing their company 401(k) plan is in good hands.
Employee Instruction and Engagement Efforts
A 401(k) plan is just as productive as its participation rate. We proactively communicate with employees, giving workshops, one-on-one meetings, and electronic resources to inform them about what your company 401(k) plan can offer them. By demystifying financial concepts and underscoring the significance of early and consistent contributions, we aim to increase employee participation and faith in their retirement planning. With Correct Capital, your employees will have their very own Lake St. Louis, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Lake St. Louis, MO
Traversing the intricacies of 401(k) plans can often result in concerns. In our dedication to transparency and client education, we've put together a list of frequently asked questions about company 401(k) plans in Lake St. Louis, MO:
- How are company 401(k) plans funded?
Company 401(k) plans are mainly funded through voluntary salary deferrals made by employees. Moreover, 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 benefits of a 401(k) compared to other retirement options?
Company 401(k) plans offer greater contribution limits relative to many other retirement options such as IRAs, as well as possible employer matching, loan provisions, and flexibility in investment choices. Moreover, contributions can be made through either traditional or Roth deferrals, offering 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 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 normally invested in a variety of options, primarily 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 based on their risk tolerance and financial goals.
- What are the fees associated with 401(k) plans?
Fees depend largely on the plan provider, investment choices, or and if the company wants to pay 401k plan fees. Usual fees consist of administrative and recordkeeping fees, individual service fees, and investment-related fees. Investment fees for passive (index) fund managers can considerably 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 providing a company 401(k) plan?
Employers are in charge of selecting and watching the plan provider, ensuring compliance with federal regulations, providing timely disclosures to employees, and submitting employee contributions promptly. As your advisors for your company 401(k) plan in Lake St. Louis, MO, Correct Capital can take on a great deal of the fiduciary duty included off your plate.
Other services we offer in Lake St. Louis, MO include:
Reach out to Correct Capital for Your Company 401(k) Plans in Lake St. Louis, MO Today
The right advice when providing your company 401(k) plan in Lake St. Louis, MO can make all the difference. Correct Capital Wealth Management, based in Lake St. Louis, MO, provides fiduciary responsibility and our I.O.U. promise: all the advice we give 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 customized to fulfill the unique needs of your business 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 Lake St. Louis, MO today.
