Company 401(k) plans in Shrewsbury, MO. Given the ongoing inflation levels and an employee-friendly job market, two primary worries have climbed to the top of many Shrewsbury, MO businesses' lists: reducing costs and attracting and retaining productive workers . Setting up a 401(k) plan can help you accomplish both. Company 401(k) plans not only function as robust tools for retirement savings, but also highlight an organization's devotion to their workers' long-term prosperity – all while offering desired tax breaks. Therefore, company 401(k) plans are an investment in a brighter tomorrow – both for your business and for its workers.
In a period overwhelmed with financial products, services, and changing regulations, maneuvering through the retirement plan landscape is often intimidating for many Shrewsbury, MO business owners. Businesses need the knowledge of impartial and independent financial guidance in order to be at their best. That's where Correct Capital Wealth Management steps in. If you're considering setting up a company 401(k) plan for your Shrewsbury, MO business, or currently have one and want to change it, contact Correct Capital now 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 businesses can offer to their employees. Named after a section of the U.S. Internal Revenue Code, these plans permit employees to set aside and invest part of their paycheck before taxes are taken out (generally). Taxes are not paid until the money is taken out 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 surpasses the immediate tax benefits. For employees, it function as a structured and orderly way to get ready for retirement, frequently boosted by employer contributions. For employers, offering a 401(k) demonstrates a commitment to the long-term financial health of their employees, serving as an invaluable tool for recruitment, retention, aand employee contentment.
Common Challenges Shrewsbury, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan can be a great addition to your Shrewsbury, MO business. However, creating, handling, and refining a 401(k) plan demands meticulous planning, clear strategy, and ongoing commitment. Some of the most prevalent challenges businesses face include:
Choosing the Best Plan
There are countless options available for businesses looking for company 401(k) plans. Companies have to sift through these to decide which plan best 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 are all crucial.
Administration Complexities
Handling a 401(k) plan isn't a one-time task. Beginning with 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) management.
Staying Compliant with Regulations
401(k) plans are governed by strict regulations, 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 absolutely crucial to avoid penalties and maintain the plan's tax-beneficial status.
Educating Employees on The Company 401(k) Plan
A 401(k) plan's success doesn't just hinge on its administration; your employees have to buy in and understand how it's benefited them. It's crucial to teach employees about the advantages of enrolling, how matching contributions work, 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 mitigate these frequent concerns collaborating with a dependable Shrewsbury, MO financial advisor that can help you understand your options and your needs and tailor a company 401(k) plan that works best for your Shrewsbury, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Shrewsbury, MO
Your business requires a partner in Shrewsbury, MO that understands your individual needs, drives data-based decision-making, and keeps your interests at heart. Correct Capital is a reliable provider of custom 401(k) services in Shrewsbury, MO for many companies. Here’s what sets us apart:
- Fiduciary duty — At Correct Capital, we're bound by a fiduciary duty. We’re legally and ethically bound to act in your best interest. As fiduciary advisors and CERTIFIED FINANCIAL PLANNER™ professionals, we are legally bound to abide by 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
- Keep the confidentiality and safeguard 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 based on our professional opinion on what is best for your business, unaffected by external biases or incentives
- Demonstrated experience in company 401(k) plans — Correct Capital brings a track record of experience and success helping both local Shrewsbury, MO and national businesses set up 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 throughout the U.S. (*as of January 2022)
How Correct Capital Adds Value to Company 401(k) Plans in Shrewsbury, MO
Experienced financial advisors understand the nuances of company 401(k) plans in Shrewsbury, MO and actively seek avenues to enhance benefits for both the business and employees. With our commitment to a customer-focused approach, we offer distinctive value to companies seeking to establish or enhance their 401(k) plans:
Customized Plan Selection Based on Your Company’s Specific Needs
Each company has its own group of goals, history, employee demographics, and financial situations. At Correct Capital, we understand this diversity and customize 401(k) plan options to meet these individual needs. By understanding the intricacies of your business, we're able to design a retirement plan that aligns business and employees' interests.
Streamlined Administration and Continuous Management
Managing a 401(k) plan can be loaded with administrative tasks. We streamline administrative tasks for you. We help monitor how your team is staying updated with compliance checks, punctual reporting, and more, and offer you our consultory services to ensure your administrative responsibility are not burdensome. Working with an experienced 401(k) provider in Shrewsbury, MO allows businesses to focus on what they do best, knowing their company 401(k) plan is in good hands.
Employee Instruction and Engagement Initiatives
A 401(k) plan is only as effective as its participation rate. We actively interact with employees, providing seminars, one-on-one meetings, and digital resources to educate them about their retirement benefits. 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 Shrewsbury, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Shrewsbury, MO
Navigating the intricacies of 401(k) plans can often result in doubts. In our dedication to openness and client education, we've assembled a list of frequently asked questions about company 401(k) plans in Shrewsbury, MO:
- In what way are company 401(k) plans funded?
Company 401(k) plans are primarily funded through elective salary deferrals made by employees. Additionally, employers can choose to match a segment 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 higher contribution limits compared to many other retirement options such as IRAs, as well as likely employer matching, loan provisions, and a greater variety of investment options. Furthermore, contributions can be made through both traditional or Roth deferrals, offering greater tax flexibility to your employees.
- How do employer matches work in a 401(k) plan?
Employers can offer matching contributions up to a specific percentage of the employee's earnings. This match can be dollar for dollar, 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 additional $7,500 for people closer to retirement).
- How are 401(k) funds invested?
401(k) funds are normally invested in a selection 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 oversee the specific investment choices, and employees can customize their portfolios according to their risk tolerance and financial goals.
- What are the fees connected to 401(k) plans?
Fees depend largely on the plan provider, investment choices, or and whether the company wants to pay 401k plan fees. Common fees contain administrative and recordkeeping fees, individual service fees, and investment-related fees. Investment fees for passive (index) fund managers can significantly reduce investment cost. Fees usually range from .5% to 2%, and the average fee is around 1% of assets managed.
- What the key responsibilities of an employer providing a company 401(k) plan?
Employers are in charge of selecting and overseeing 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 Shrewsbury, MO, Correct Capital can take on a lot of the liability included off your shoulders.
Other services we offer in Shrewsbury, 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 Shrewsbury, MO Today
The right advice when providing your company 401(k) plan in Shrewsbury, MO can make every bit of difference. Correct Capital Wealth Management, based in Shrewsbury, MO, 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 adapted to fulfill the unique needs of your company and its employees. Schedule an appointment with a member of our advisor team, reach out us at 877-930-4015, or contact us online to get started with your company 401(k) plans in Shrewsbury, MO right away.
