Company 401(k) plans in St. Louis, MO. Current economic conditions and a favorable job market for employees, a couple of predominant issues have climbed to the top of many St. Louis, MO companies' lists: reducing costs and attracting and retaining productive workers . Creating a 401(k) plan can help you accomplish both. Company 401(k) plans not only serve as strong ways to save for retirement, but also highlight an organization's commitment to its staff's long-term prosperity – all while delivering savings for the company in the form of reduced taxes. Thus, company 401(k) plans stand as a pledge to a brighter tomorrow – both for the company and for its employees.
In an era overwhelmed with financial products, services, and shifting regulations, navigating the retirement plan landscape is often daunting for many St. Louis, MO business owners. Companies need the insight of objective and independent financial advice in order to be on top of their game. That's where Correct Capital Wealth Management comes into play. If you're thinking of setting up a company 401(k) plan for your St. Louis, MO business, or even already have one and want to change it, call Correct Capital now at 877-930-4015, or contact us through our website.
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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 extend to their employees. Named after a part of the U.S. Internal Revenue Code, these plans enable employees to put away and invest some of their paycheck before taxes are taken out (generally). Taxes aren't paid until the money is taken out from the account, usually 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 goes beyond the immediate tax benefits. For employees, it acts as a well-organized and orderly way to get ready for retirement, commonly supplemented by employer matches. For employers, offering a 401(k) shows a commitment to the long-term financial health of their staff, functioning as a crucial tool for recruitment, retention, aand employee engagement.
Common Challenges St. Louis, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan is often a fantastic addition to your St. Louis, MO business. Nonetheless, creating, overseeing, and monitoring a 401(k) plan necessitates careful consideration, clear strategy, and ongoing commitment. Some of the most prevalent challenges businesses encounter include:
Picking the Correct Plan
There are myriad options out there for businesses in search of company 401(k) plans. Companies have to sift through these to determine which plan most 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 all come into play.
Administration Difficulties
Administering a 401(k) plan is not a singular endeavor. Starting from recordkeeping through to ensuring timely contributions, the managerial responsibilities can be substantial. Companies must 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 by rigid regulations, 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 vital to avert penalties and sustain the plan's tax-favored status.
Educating Employees on The Company 401(k) Plan
A 401(k) plan's success doesn't merely depend on its compliance; your employees need to buy in and understand the value it offers them. It's vital to educate employees about the advantages of participating in the plan, how matching contributions work, and the implications of their investment choices. An informed employee is more likely to use the plan for all it's worth
The best way to allay these usual concerns is by teaming up with a trustworthy St. Louis, MO financial advisor that will help you understand the options available to you and your requirements and adapt a company 401(k) plan that works best for your St. Louis, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in St. Louis, MO
Your business needs a partner in St. Louis, MO that understands your individual needs, provides clarity in decision-making, and has your interests at heart. Correct Capital Wealth Management stands as a reliable provider of custom 401(k) services in St. Louis, MO for several companies. Here is what we think makes us stand out:
- Fiduciary duty — At Correct Capital Wealth Management, we're fiduciary advisors. We’re 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 bound to adhere to a Code of Ethics and Standards of Conduct, in which we must:
- Demonstrate 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 favorably on the financial planning profession
- Genuine independence — We are not tied down by partnerships with financial products or institutions. Our independent stance ensures that our advice is purely based on our professional opinion on what is best for your business, unaffected by external biases or incentives
- Established experience in company 401(k) plans — Correct Capital brings a track record of experience and success aiding both local St. Louis, MO and national businesses set up and manage their company 401(k) plans. Our retirement consultants are currently managing over 30 plans in companies of all sizes, 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 St. Louis, MO
Knowledgeable financial advisors understand the nuances of company 401(k) plans in St. Louis, MO and proactively seek avenues to optimize benefits for both the employer and employees. With our commitment to a customer-focused approach, we offer unique value to companies seeking to set up or enhance their 401(k) plans:
Customized Plan Selection In line with Your Company’s Particular Needs
Every company has its very own set of goals, history, employee demographics, and financial situations. At Correct Capital Wealth Management, we recognize this diversity and adapt 401(k) plan options to meet these individual needs. By grasping the nuances of your business, we're able to create a retirement plan that optimizes growth potential for all involved.
Streamlined Administration and Continual Management
Administering a 401(k) plan can be heavy on administration. We simplify this process for you. We help keep tabs on how your office 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. Working with an experienced 401(k) provider in St. Louis, MO allows businesses to focus on their main operations, knowing their company 401(k) plan is in good hands.
Employee Education and Participation Efforts
A 401(k) plan is merely as effective as its participation rate. We actively interact with employees, offering workshops, one-on-one consultations, and online resources to educate them about what your company 401(k) plan can offer them. By demystifying financial concepts and highlighting the significance of early and consistent 401(k) savings, we endeavor to boost employee participation and trust in their retirement planning. With Correct Capital, your employees will have their very own St. Louis, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in St. Louis, MO
Traversing the details of 401(k) plans can frequently lead to doubts. In our dedication to clarity and client education, we've put together a list of frequently asked questions about company 401(k) plans in St. Louis, MO:
- In what way 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 portion 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 advantages of a 401(k) over other retirement options?
Company 401(k) plans offer greater contribution limits than many other retirement options such as IRAs, in addition to potential employer matching, loan provisions, and a greater variety of investment options. Moreover, contributions can be made through either traditional or Roth deferrals, giving greater tax flexibility for participants.
- 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 salary. This match can be dollar for dollar, 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 typically invested in a variety 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 monitor the specific investment choices, and employees can customize their portfolios based on their risk tolerance and retirement planning needs.
- What are the fees associated with 401(k) plans?
Fees depend largely on the plan provider, investments, or and whether 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 considerably reduce certain fees. Fees usually range from .5% to 2%, and the average fee is about 1% of assets managed.
- What the key responsibilities of an employer offering a company 401(k) plan?
Employers are accountable for picking and monitoring the plan provider, ensuring compliance with federal regulations, providing timely disclosures to employees, and remitting employee contributions speedily. As your advisors for your company 401(k) plan in St. Louis, MO, Correct Capital can take on a great deal of the fiduciary duty included off your shoulders.
Other services we offer in St. Louis, MO include:
- Roth Conversion
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
- Succession Planning
- Fiduciary Financial Advisor
Reach out to Correct Capital for Your Company 401(k) Plans in St. Louis, MO Today
The appropriate advice when providing your company 401(k) plan in St. Louis, MO can make all the difference. Correct Capital Wealth Management, rooted in St. Louis, 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 customized to satisfy the unique needs of your business and its employees. Schedule a meeting 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 St. Louis, MO today.
