Company 401(k) plans in O'Fallon, MO. Current inflation levels and an employee-friendly job market, two main concerns have emerged for many businesses: cost-saving and hiring and retaining high performers . Setting up a 401(k) plan could help your company accomplish both. Company 401(k) plans not only act as robust retirement saving tools, but also emphasize a company's dedication to its staff's long-term financial security – all while providing savings for the company in the form of reduced taxes. Thus, company 401(k) plans are a pledge to a brighter tomorrow – both for the company and for its employees.
In a period overwhelmed with financial products, services, and evolving regulations, navigating the retirement plan landscape can be intimidating for many O'Fallon, MO business owners. Businesses need the wisdom of objective and independent financial guidance in order to be on top of their game. That's where Correct Capital Wealth Management steps in. If you are considering setting up a company 401(k) plan for your O'Fallon, MO business, or currently have one and want to alter it, call Correct Capital today at 877-930-4015, or contact us online.
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. Titled after a section of the U.S. Internal Revenue Code, these plans enable employees to put away and invest part of their paycheck before taxes are taken out (generally). Taxes are not paid until the money is withdrawn from the account, typically after retirement.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 significance of a 401(k) plan surpasses the direct tax benefits. For employees, it function as a well-organized and disciplined way to prepare for retirement, often boosted by employer contributions. For employers, offering a 401(k) demonstrates a commitment to the long-term economic stability of their employees, functioning as a crucial tool for recruitment, retention, aand employee happiness.
Common Challenges O'Fallon, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan has been a boon for many O'Fallon, MO businesses. However, setting up, managing, and optimizing a 401(k) plan requires meticulous planning, clear strategy, and ongoing commitment. A few of the most common challenges businesses meet include:
Selecting the Right Plan
There are countless options out there for businesses looking for company 401(k) plans. Companies need to sort through these to determine 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 matching contribution amounts are all crucial.
Administration Complexities
Managing a 401(k) plan is an ongoing process. From regular documentation through to ensuring timely contributions, the managerial responsibilities can be substantial. Companies must stay on top of enrollment periods, distributions, loan provisions, and other nuances that come with 401(k) administration.
Ensuring Compliance 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 consistent compliance is crucial to avert penalties and sustain the plan's tax-favored status.
Teaching Employees About Their Benefits and Choices
A 401(k) plan's success doesn't just depend on its administration; your employees have to get on board and understand the value it offers them. It's imperative to educate employees about the advantages of participating in the plan, how matching contributions work, and the investment options available to them. An informed employee is more likely to use the plan for all it's worth
The most effective way to allay these frequent concerns is by collaborating with a trusted O'Fallon, MO financial advisor that can help you understand your options and your needs and adapt a company 401(k) plan that works best for your O'Fallon, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in O'Fallon, MO
Your company needs a partner in O'Fallon, MO who understands your distinct needs, drives data-based decision-making, and has your interests at heart. Correct Capital Wealth Management is a dependable provider of custom 401(k) services in O'Fallon, MO for numerous companies. Here is what makes us apart:
- Fiduciary duty — At Correct Capital Wealth Management, we are fiduciary advisors. 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 follow a Code of Ethics and Standards of Conduct, in which we must:
- Act with truthfulness, integrity, competence, and diligence
- Act in the client's best interests
- Exercise due care
- Avoid or disclose and manage conflicts of interest
- Keep the confidentiality and protect the privacy of client information
- Act in a manner that reflects favorably on the financial planning profession
- True independence — We're not bound by affiliations 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 brings a proven history of experience and success aiding both local O'Fallon, MO and national businesses create and manage their company 401(k) plans. We currently manage over 30 plans in companies of all sizes, and oversee 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 O'Fallon, MO
Knowledgeable financial advisors understand the nuances of company 401(k) plans in O'Fallon, MO and actively seek avenues to optimize benefits for both the business and employees. With our devotion to a customer-focused approach, we offer unique value to companies seeking to set up or enhance their 401(k) plans:
Tailored Plan Selection Based on Your Company’s Specific Needs
Each company has its very own group of goals, culture, employee demographics, and financial situations. At Correct Capital, we recognize this diversity and customize 401(k) plan options to each of our clients' individual needs. By comprehending the intricacies of your business, we're able to design a retirement plan that enhances growth potential for all involved.
Simplified Administration and Ongoing Management
Handling a 401(k) plan can be loaded with administrative tasks. We simplify this process 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 the administrative duties that come with a 401(k) plan do not become burdensome. Having an experienced 401(k) provider in O'Fallon, MO enables businesses to focus on what they do best, knowing their company 401(k) plan is in good hands.
Employee Learning and Engagement Efforts
A 401(k) plan is only as productive as its participation rate. We proactively interact with employees, providing sessions, one-on-one consultations, and digital resources to enlighten them about what your company 401(k) plan can offer them. By simplifying financial concepts and highlighting the significance of early and consistent contributions, we aim to boost employee participation and faith in their retirement planning. With Correct Capital, your employees will have their very own O'Fallon, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in O'Fallon, MO
Traversing the details of 401(k) plans can frequently result in concerns. In our dedication to openness and client education, we've put together a list of FAQs about company 401(k) plans in O'Fallon, MO:
- In what way are company 401(k) plans funded?
Company 401(k) plans are primarily 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 business funds and are tax-deductible.
- What are the benefits of a 401(k) versus 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 options. Additionally, contributions can be made through both 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 certain percentage of the employee's pay. 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 given 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 variety of options, largely 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 retirement planning needs.
- What are the fees connected to 401(k) plans?
Fees can vary according to the plan provider, investments, or and whether 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 greatly reduce investment cost. 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 accountable for choosing and watching the plan provider, ensuring compliance with federal regulations, offering timely disclosures to employees, and sending employee contributions quickly. As your advisors for your company 401(k) plan in O'Fallon, MO, Correct Capital can take on much of the fiduciary duty included off your plate.
Other services we offer in O'Fallon, 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 O'Fallon, MO Today
The correct direction when offering your company 401(k) plan in O'Fallon, MO can make every bit of difference. Correct Capital Wealth Management, founded in O'Fallon, MO, provides fiduciary responsibility and our I.O.U. promise: all the advice we give will be independent, objective, and unbiased. By teaming up with Correct Capital, you ensure that your company's retirement benefits aren't merely compliant and optimized but also adapted to meet the unique needs of your company and its employees. Arrange a meeting with one of our financial advisors, 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, MO now.
