Company 401(k) plans in Sunset Hills, MO. With the present economic conditions as well as a pro-employee job market, two main concerns have emerged for many businesses: saving money and hiring and retaining high performers . Establishing a 401(k) plan could help your company achieve both these goals. Company 401(k) plans not only act as strong tools for retirement savings, but also emphasize an organization's devotion to their workers' long-term prosperity – all while delivering savings for the company in the form of reduced taxes. Therefore, company 401(k) plans stand as an investment in the future – both for your business and for its employees.
In a period inundated with financial products, services, and shifting regulations, maneuvering through the retirement planning landscape can be daunting for many Sunset Hills, MO business owners. Companies need the knowledge of impartial and independent financial guidance in order to be on top of their game. That's where Correct Capital Wealth Management steps in. If you're considering establishing a company 401(k) plan for your Sunset Hills, MO business, or already have one and want to modify 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 extend to their employees. Named 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 due until the money is taken out from the account, typically once an employee hits retirement. For employers, matching contributions in company 401(k) plans are considered tax deductible.
The importance of a 401(k) plan extends beyond the immediate tax benefits. For employees, it function as a structured and disciplined way to plan for retirement, often boosted by employer matches. For employers, offering a 401(k) demonstrates a commitment to the long-term economic stability of their employees, acting as a crucial tool for recruitment, retention, aand employee satisfaction.
Common Challenges Sunset Hills, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan is often a fantastic addition to your Sunset Hills, MO business. But, setting up, managing, and monitoring a 401(k) plan requires thorough thinking, clear strategy, and ongoing commitment. A few of the most frequent challenges businesses meet include:
Picking the Best Plan
There are myriad options available for businesses searching for company 401(k) plans. Companies have to navigate these to determine which plan most 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 are all crucial.
Administration Complexities
Administering a 401(k) plan isn't a one-time endeavor. Starting from recordkeeping through to ensuring timely contributions, the administrative responsibilities are substantial. Companies must keep up with enrollment periods, distributions, loan provisions, and other nuances that come with 401(k) administration.
Ensuring Compliance with Regulations
401(k) plans are governed by rigid regulations, set primarily by the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Service (IRS). Staying up with these regulations and ensuring you don't break the rules is vital to avert 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 establishment; your employees need to buy in and understand the value it gives them. It's vital to educate employees about the advantages of enrolling, the nature of employer matching, 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 address these common concerns teaming up with a trusted Sunset Hills, MO financial advisor that can help you understand your options and your needs and customize a company 401(k) plan that is most effective for your Sunset Hills, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Sunset Hills, MO
Your business needs a partner in Sunset Hills, MO that understands your unique needs, drives data-based decision-making, and has your interests at heart. Correct Capital Wealth Management is a reliable provider of custom 401(k) services in Sunset Hills, MO for several companies. Below is what we think makes us different:
- Fiduciary duty — At Correct Capital Wealth Management, we are fiduciary advisors. 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 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
- Conduct oneself in a manner that reflects well on the financial planning profession
- Genuine independence — We're not bound by affiliations with financial products or institutions. Our independent stance ensures that our advice is solely founded on what we believe is best for your business, free from outside biases or incentives
- Proven experience in company 401(k) plans — Correct Capital Wealth Management brings a track record of experience and success assisting both local Sunset Hills, MO and national businesses create and administer their company 401(k) plans. Our financial advisors are currently managing 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 Sunset Hills, MO
Experienced financial advisors understand the nuances of company 401(k) plans in Sunset Hills, MO and diligently seek avenues to enhance benefits for both the company and employees. With our dedication to a customer-focused approach, we offer distinctive value to companies seeking to set up or enhance their 401(k) plans:
Tailored Plan Selection According to Your Company’s Unique Needs
Every company has its very own set of goals, culture, employee demographics, and financial situations. At Correct Capital, we recognize this diversity and tailor 401(k) plan options to each of our clients' individual needs. By grasping what makes your business tick, we're able to design a retirement plan that aligns business and employees' interests.
Efficient Administration and Ongoing Management
Dealing with a 401(k) plan can be loaded with administrative tasks. We simplify administrative tasks for you. We help keep tabs on how your team is keeping up with compliance checks, prompt 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 Sunset Hills, MO enables businesses to focus on their core operations, knowing their company 401(k) plan is in good hands.
Employee Learning and Involvement Programs
A 401(k) plan is merely as effective as its participation rate. We proactively communicate with employees, providing workshops, one-on-one meetings, and electronic resources to enlighten them about their retirement benefits. By clarifying financial concepts and underscoring the relevance of early and consistent contributions, we aim to increase employee participation and trust in their retirement planning. With Correct Capital, your employees will have their very own Sunset Hills, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Sunset Hills, MO
Understanding the details of 401(k) plans can frequently lead to questions. In our dedication to clarity and client education, we've put together a list of frequently asked questions about company 401(k) plans in Sunset Hills, MO:
- In what way are company 401(k) plans funded?
Company 401(k) plans are mainly funded through voluntary salary deferrals made by employees. Additionally, 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) compared to other retirement options?
Company 401(k) plans offer higher contribution limits relative to many other retirement options such as IRAs, in addition to possible employer matching, loan provisions, and flexibility in investment choices. Additionally, contributions can be made through both 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 pay. 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 set limit ($66,000 in 2023, with an additional $7,500 for "catch-up" contributions).
- How are 401(k) funds invested?
401(k) funds are normally invested in a variety 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 based on their risk tolerance and financial goals.
- What are the fees connected to 401(k) plans?
Fees can vary based on the plan provider, investment choices, or and whether or not 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 considerably reduce certain fees. Fees generally 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 choosing and overseeing 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 Sunset Hills, MO, Correct Capital can take on a great deal of the liability included off your plate.
Other services we offer in Sunset Hills, 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 Sunset Hills, MO Today
The right advice when providing your company 401(k) plan in Sunset Hills, MO can make every bit of difference. Correct Capital Wealth Management, rooted in Sunset Hills, 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 just compliant and optimized but also bespoke to satisfy the unique needs of your business and its employees. Schedule an appointment 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 Sunset Hills, MO right away.
