Company 401(k) plans in O'Fallon, IL. Current inflation levels as well as a pro-employee job market, a couple of predominant issues have risen to the forefront of many O'Fallon, IL businesses' lists: cost-saving and attracting and retaining productive workers . Creating a 401(k) plan can help you accomplish both these goals. Company 401(k) plans not only act as strong tools for retirement savings, but also highlight a business's devotion to their workers' long-term prosperity – all while delivering savings for the company in the form of reduced taxes. Thus, company 401(k) plans stand as a commitment to a brighter tomorrow – both for the company and for its employees.
In an era inundated with financial products, provisions, and evolving regulations, navigating the retirement plan landscape can be intimidating for many O'Fallon, IL business owners. Companies 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 enters the picture. If you are considering creating a company 401(k) plan for your O'Fallon, IL 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 companies offer to their employees. Named after a part of the U.S. Internal Revenue Code, these plans allow employees to save 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, generally 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 acts as a well-organized and orderly way to get ready for retirement, often boosted by employer matches. For employers, providing a 401(k) shows a dedication to the long-term economic stability of their workers, serving as a valuable tool for hiring, retention, aand employee engagement.
Common Challenges O'Fallon, IL Businesses Face With Company 401(k) Plans
A company 401(k) plan is often a great addition to your O'Fallon, IL business. However, setting up, handling, and monitoring a 401(k) plan demands meticulous planning, clear strategy, and persistent commitment. Some of the most frequent challenges businesses meet include:
Choosing the Correct Plan
There are countless options out there for businesses in search of company 401(k) plans. Companies must navigate these to ascertain which plan best 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 are all crucial.
Administration Complexities
Administering a 401(k) plan is not a one-time task. Starting from recordkeeping to ensuring timely contributions, the administrative responsibilities can be 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 regulatory oversight, set chiefly by the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Service (IRS). Staying up with these regulations and ensuring consistent compliance is absolutely essential to avert penalties and keep the plan's tax-advantaged status.
Educating Employees on Their Benefits and Choices
A 401(k) plan's success doesn't just depend on its compliance; your employees have to buy in and understand how it's benefited them. It's crucial to inform employees about the benefits of enrolling, how matching contributions work, and the investment options available to them. An educated employee is likely to engage actively and make decisions that align with their financial goals
The best way to mitigate these common concerns collaborating with a dependable O'Fallon, IL financial advisor that will help you understand your options and your needs and adapt a company 401(k) plan that works best for your O'Fallon, IL business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in O'Fallon, IL
Your company requires a partner in O'Fallon, IL who understands your unique needs, drives data-based decision-making, and prioritizes what's in your best interest. Correct Capital stands as a reliable provider of custom 401(k) services in O'Fallon, IL for many companies. Here’s what makes us apart:
- Fiduciary duty — At Correct Capital, we're bound by a fiduciary duty. Meaning, we're both legally and ethically bound to do what we sincerely believe is in your best interest. As fiduciary advisors and CERTIFIED FINANCIAL PLANNER™ professionals, we are legally obligated 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 safeguard the privacy of client information
- Behave 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 founded on what we believe is best for your business, free from external biases or incentives
- Established experience in company 401(k) plans — Correct Capital brings a track record of experience and success helping both local O'Fallon, IL and national businesses set up and administer their company 401(k) plans. Our team is currently managing over 30 plans in both small and large companies, and oversee 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 O'Fallon, IL
Knowledgeable financial advisors understand the intricacies of company 401(k) plans in O'Fallon, IL and actively seek avenues to optimize benefits for both the employer and employees. With our commitment to a customer-focused approach, we offer distinctive value to companies seeking to set up or enhance their 401(k) plans:
Personalized Plan Selection In line with Your Company’s Unique Needs
Each company has its own group of goals, culture, employee demographics, and financial situations. At Correct Capital Wealth Management, we recognize this diversity and tailor 401(k) plan options to each of our clients' individual needs. By comprehending what makes your business tick, we're able to craft a retirement plan that aligns business and employees' interests.
Simplified Administration and Continual Management
Dealing with a 401(k) plan can be administratively intensive. We simplify administrative tasks for you. We help monitor how your office is staying updated 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 do not become burdensome. Having an experienced 401(k) provider in O'Fallon, IL lets businesses to focus on their core operations, knowing their company 401(k) plan is in good hands.
Employee Education and Involvement Initiatives
A 401(k) plan is merely as productive as its participation rate. We proactively engage with employees, giving seminars, one-on-one consultations, and digital resources to educate them about what your company 401(k) plan can offer them. By demystifying financial concepts and underscoring the importance of early and consistent retirement savings, we strive to increase employee participation and confidence in their retirement planning. With Correct Capital, your employees will have their very own O'Fallon, IL retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in O'Fallon, IL
Traversing the complexities of 401(k) plans can often result in concerns. In our commitment to clarity and client education, we've assembled a list of FAQs about company 401(k) plans in O'Fallon, IL:
- How are company 401(k) plans funded?
Company 401(k) plans are chiefly funded through voluntary salary deferrals from employees' paychecks. Furthermore, 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 are tax-deductible.
- What are the benefits of a 401(k) against other retirement options?
Company 401(k) plans offer greater contribution limits compared to many other retirement options such as IRAs, as well as likely employer matching, loan provisions, and flexibility in investment options. Moreover, contributions can be made through either traditional or Roth deferrals, providing greater tax flexibility to your employees.
- How do employer matches work in a 401(k) plan?
Employers can choose to match employee contributions up to a specific percentage of the employee's pay. This match can be dollar for dollar, or a different ratio, and the employee's total contribution, comprising yours and their contributions, cannot exceed a set limit ($66,000 in 2023, with an extra $7,500 for "catch-up" contributions).
- How are 401(k) funds invested?
401(k) funds are usually invested in a selection of options, mostly involving mutual funds, such as 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 retirement planning needs.
- What are the fees related to 401(k) plans?
Fees can vary according to the plan provider, investments, or and if the company wants to pay 401k plan fees. Usual fees contain administrative and recordkeeping fees, individual service fees, and investment-related fees. Investment fees for passive (index) fund managers can substantially reduce investment cost. Fees generally 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 accountable for picking and watching 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 O'Fallon, IL, Correct Capital can take on much of the fiduciary duty included off your plate.
Other services we offer in O'Fallon, IL 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 O'Fallon, IL Today
The appropriate guidance when offering your company 401(k) plan in O'Fallon, IL can make all the difference. Correct Capital Wealth Management, based in O'Fallon, IL, offers 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 bespoke to satisfy the unique needs of your company and its employees. Arrange an appointment with a member of our advisor team, reach out us at 877-930-4015, or contact us through our website to get started with your company 401(k) plans in O'Fallon, IL today.
