Company 401(k) plans in St. Louis, MO. Current inflation levels as well as an employee-friendly job market, two primary worries have emerged for many businesses: cost-saving and hiring and retaining talent . Creating a 401(k) plan could help your company achieve both. Company 401(k) plans not only act as robust retirement saving tools, but also underscore a company's dedication to its staff's long-term financial security – all while offering essential tax breaks. In this way, company 401(k) plans stand as a commitment to a brighter tomorrow – both for the company and for its team members.
In a period flooded with financial products, provisions, and shifting regulations, maneuvering through the retirement savings landscape can be intimidating for many St. Louis, MO business owners. Businesses need the insight of objective and independent financial guidance in order to be on top of their game. That's where Correct Capital Wealth Management comes into play. If you are thinking of creating a company 401(k) plan for your St. Louis, MO business, or even already have one and want to change it, contact Correct Capital now at 877-930-4015, or contact us through our website.
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. Titled after a section of the U.S. Internal Revenue Code, these plans allow employees to set aside 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, 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 direct tax benefits. For employees, it function as a well-organized and disciplined way to plan for retirement, often supplemented by employer matches. For employers, providing a 401(k) demonstrates a commitment to the long-term financial health of their workers, 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 has been a boon for many St. Louis, MO businesses. Nonetheless, creating, overseeing, and monitoring a 401(k) plan necessitates thorough thinking, clear strategy, and ongoing commitment. Some of the most prevalent challenges businesses face include:
Picking the Correct Plan
There are numerous options available for businesses in search of company 401(k) plans. Companies need to navigate these to decide which plan best aligns with their financial standing, business goals, and the needs of their employees. Factors such as plan type (e.g., traditional vs. Safe Harbor), investment options, and contribution structures all come into play.
Administration Complexities
Managing a 401(k) plan is an ongoing process. Beginning with regular documentation to ensuring timely contributions, the managerial responsibilities are substantial. Companies have to keep up with enrollment periods, distributions, loan provisions, and other nuances that come with plan 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). Staying up with these regulations and ensuring consistent compliance is absolutely vital to prevent penalties and sustain the plan's tax-advantaged status.
Teaching Employees About Their Benefits and Choices
A 401(k) plan's success doesn't merely depend on its establishment; your employees have to get on board and understand the value it gives them. It's crucial to educate employees about the advantages of enrolling, the nature of employer matching, 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 address these frequent concerns partnering with a trusted St. Louis, MO financial advisor that will help you understand your options 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 unique needs, drives data-based decision-making, and holds your interests at heart. Correct Capital Wealth Management stands as a trusted provider of custom 401(k) services in St. Louis, MO for numerous companies. Here’s what we think makes us different:
- Fiduciary duty — At Correct Capital, we're held to a fiduciary duty. Meaning, 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 required to abide by 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
- Uphold the confidentiality and safeguard the privacy of client information
- Act in a manner that reflects well on the financial planning profession
- Genuine independence — We are not constrained 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 an established history of experience and success assisting both local St. Louis, MO and national businesses set up and manage their company 401(k) plans. Our financial advisors are currently managing over 30 plans in companies of all sizes, and oversee 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 St. Louis, MO
Knowledgeable financial advisors understand the nuances of company 401(k) plans in St. Louis, MO and actively seek avenues to optimize benefits for both the employer and employees. With our dedication to a client-centered approach, we offer unique value to companies seeking to establish or enhance their 401(k) plans:
Tailored Plan Selection Based on Your Company’s Particular Needs
Every 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 fulfill these 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
Managing a 401(k) plan can be heavy on administration. We streamline this process 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 obligations are not burdensome. Having an experienced 401(k) provider in 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 Programs
A 401(k) plan is only as productive as its participation rate. We actively engage with employees, offering seminars, one-on-one consultations, and electronic resources to educate them about what your company 401(k) plan can offer them. By demystifying financial concepts and emphasizing the relevance of early and consistent retirement savings, we aim to increase employee participation and faith 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
Understanding the details of 401(k) plans can often result in doubts. In our dedication to transparency and client education, we've assembled a list of frequently asked questions about company 401(k) plans in St. Louis, MO:
- How are company 401(k) plans funded?
Company 401(k) plans are chiefly funded through voluntary salary deferrals from employees' paychecks. Additionally, 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 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 than many other retirement options such as IRAs, as well as possible employer matching, loan provisions, and a greater variety of investment choices. Moreover, contributions can be made through either traditional or Roth deferrals, giving greater tax flexibility to your employees.
- How do employer matches work in a 401(k) plan?
Employers can offer matching contributions up to a certain percentage of the employee's earnings. This match can be at an equal rate, 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 extra $7,500 for those 50 and older).
- How are 401(k) funds invested?
401(k) funds are normally invested in a range 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 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, investment choices, 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 certain fees. 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 responsible for picking and monitoring the plan provider, ensuring compliance with federal regulations, offering timely disclosures to employees, and submitting employee contributions quickly. 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 involved off your plate.
Other services we offer in St. Louis, MO include:
- Financial Planning
- Retirement Plan Consultants
- 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 St. Louis, MO Today
The correct guidance when offering your company 401(k) plan in St. Louis, MO can make all the difference. Correct Capital Wealth Management, based in St. Louis, MO, gives fiduciary responsibility and our I.O.U. promise: all the advice we offer will be independent, objective, and unbiased. By partnering with Correct Capital, you ensure that your company's retirement benefits aren't just compliant and optimized but also bespoke to fulfill the unique needs of your company and its employees. Schedule a meeting with a member of our advisor team, call us at 877-930-4015, or contact us online to get started with your company 401(k) plans in St. Louis, MO right away.
