Company 401(k) plans in Town and Country, MO. Given the ongoing inflation levels as well as a favorable job market for employees, two primary worries have emerged for many businesses: cost-saving and hiring and retaining productive workers . Establishing a 401(k) plan can help your company achieve both of these objectives. Company 401(k) plans not only serve as strong retirement saving tools, but also underscore a business's devotion to its employees' long-term financial health – all while offering much needed tax benefits. Therefore, company 401(k) plans are an investment in a brighter tomorrow – both for your business and for its employees.
In an era flooded with financial products, provisions, and evolving regulations, navigating the retirement planning landscape is often intimidating for many Town and Country, MO business owners. Businesses need the insight of impartial and independent financial advice to be at their best. That's where Correct Capital Wealth Management comes into play. If you are considering establishing a company 401(k) plan for your Town and Country, MO business, or currently have one and want to change it, contact 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 can offer to their employees. Named after a part 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 Taxes aren't paid until the money is withdrawn from the account, usually once an employee hits retirement. For employers, matching contributions in company 401(k) plans are tax deductible.
The relevance of a 401(k) plan surpasses the current tax benefits. For employees, it represents a systematic and orderly way to plan for retirement, often boosted by employer matches. For employers, offering a 401(k) demonstrates a commitment to the long-term financial health of their employees, acting as a valuable tool for hiring, retention, aand employee engagement.
Common Challenges Town and Country, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan has been a boon for many Town and Country, MO businesses. Nonetheless, establishing, handling, and optimizing a 401(k) plan demands careful consideration, clear strategy, and persistent commitment. Several of the most common challenges businesses encounter include:
Picking the Right Plan
There are numerous options available for businesses searching for company 401(k) plans. Companies have to navigate these to determine 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 all come into play.
Administration Complexities
Administering a 401(k) plan is an ongoing process. Beginning with regular documentation through to ensuring timely contributions, the administrative responsibilities are substantial. Companies need to stay on top of enrollment periods, distributions, loan provisions, and other intricacies that come with plan administration.
Ensuring Compliance with Regulations
401(k) plans are governed by stringent regulations, set primarily by the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Service (IRS). Keeping up with these regulations and ensuring consistent compliance is absolutely crucial to prevent penalties and sustain the plan's tax-beneficial status.
Educating Employees on Their Benefits and Choices
A 401(k) plan's success doesn't just hinge on its administration; your employees have to get on board and understand the value it gives them. It's imperative to teach employees about the advantages of enrolling, how matching contributions work, and the investment options available to them. An educated employee is likely to engage actively and make decisions that align with their financial goals
The most effective way to address these frequent concerns is by partnering with a dependable Town and Country, MO financial advisor that will help you understand your options and your needs and tailor a company 401(k) plan that is most effective for your Town and Country, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Town and Country, MO
Your company requires a partner in Town and Country, MO that understands your distinct needs, drives data-based decision-making, and prioritizes what's in your best interest. Correct Capital is a reliable provider of custom 401(k) services in Town and Country, MO for several companies. Here’s what sets us apart:
- Fiduciary duty — At Correct Capital, we are fiduciary advisors. We’re legally and ethically bound to act in your best interest. As fiduciary advisors and CERTIFIED FINANCIAL PLANNER™ professionals, we are legally required to adhere to 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
- Conduct oneself 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 solely centered around 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 Wealth Management brings a track record of experience and success aiding both local Town and Country, MO and national businesses create and manage 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 country. (*as of January 2022)
How Correct Capital Adds Value to Company 401(k) Plans in Town and Country, MO
Experienced financial advisors understand the nuances of company 401(k) plans in Town and Country, MO and proactively seek avenues to optimize benefits for both the employer and employees. With our dedication to a client-centered approach, we offer special value to companies seeking to set up or enhance their 401(k) plans:
Customized Plan Selection In line with Your Company’s Specific Needs
Every company has its very own group of goals, history, employee demographics, and financial situations. At Correct Capital, we acknowledge this diversity and tailor 401(k) plan options to each of our clients' individual needs. By understanding what makes your business tick, we're able to create a retirement plan that optimizes growth potential for all involved.
Efficient Administration and Ongoing Management
Managing a 401(k) plan can be administratively intensive. 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 do not become burdensome. Having an experienced 401(k) provider in Town and Country, MO enables businesses to focus on their main operations, knowing their company 401(k) plan is in good hands.
Employee Learning and Involvement Programs
A 401(k) plan is only as productive as its participation rate. We actively interact with employees, giving workshops, one-on-one meetings, and online resources to inform them about what your company 401(k) plan can offer them. By simplifying financial concepts and underscoring the significance of early and consistent retirement savings, we strive to increase employee participation and faith in their retirement planning. With Correct Capital, your employees will have their very own Town and Country, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Town and Country, MO
Navigating the complexities of 401(k) plans can frequently lead to concerns. In our commitment to openness and client education, we've assembled a list of frequently asked questions about company 401(k) plans in Town and Country, MO:
- How are company 401(k) plans funded?
Company 401(k) plans are chiefly funded through voluntary salary deferrals made by employees. 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 do not count as taxable revenue.
- What are the benefits of a 401(k) compared to 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 flexibility in investment choices. Additionally, contributions can be made through both traditional or Roth deferrals, offering greater tax flexibility for participants.
- 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 at an equal rate, or a different ratio, and the employee's total contribution, comprising yours and their contributions, cannot exceed a set limit ($66,000 in 2023, with an added $7,500 for those 50 and older).
- How are 401(k) funds invested?
401(k) funds are typically invested in a range of options, largely 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 according to their risk tolerance and retirement planning needs.
- What are the fees associated with 401(k) plans?
Fees can vary based on the plan provider, investments, or and whether the company wants to pay 401k plan fees. Common fees consist of administrative and recordkeeping fees, individual service fees, and investment-related fees. Investment fees for passive (index) fund managers can substantially reduce investment cost. Fees typically 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 responsible for selecting and watching the plan provider, ensuring compliance with federal regulations, giving timely disclosures to employees, and sending employee contributions quickly. As your advisors for your company 401(k) plan in Town and Country, MO, Correct Capital can take on much of the liability involved off your shoulders.
Other services we offer in Town and Country, MO include:
- 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 Town and Country, MO Today
The correct advice when providing your company 401(k) plan in Town and Country, MO can make every bit of difference. Correct Capital Wealth Management, rooted in Town and Country, MO, offers fiduciary responsibility and our I.O.U. promise: all the advice we provide 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 adapted to meet the unique needs of your business and its employees. Set up a meeting with a member of our advisor team, reach out us at 877-930-4015, or contact us through our website to get started with your company 401(k) plans in Town and Country, MO today.
