Company 401(k) plans in Westwood, MO. With the present economic conditions and an employee-friendly job market, two main concerns have emerged for many businesses: saving money and hiring and retaining talent . Setting up a 401(k) plan could help your business achieve both of these objectives. Company 401(k) plans not only serve as robust ways to save for retirement, but also emphasize a business's dedication to their workers' long-term economic well-being – all while providing much needed tax breaks. Thus, company 401(k) plans stand as an investment in a brighter tomorrow – both for your business and for its workers.
In a time overwhelmed with financial products, services, and evolving regulations, maneuvering through the retirement plan landscape is often intimidating for many Westwood, MO business owners. Businesses need the insight of unbiased and independent financial guidance to be at their best. That's where Correct Capital Wealth Management enters the picture. If you are thinking of creating a company 401(k) plan for your Westwood, MO business, or already have one and want to modify it, contact Correct Capital today at 877-930-4015, or fill out our online contact form.
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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 can offer to their employees. Titled after a section of the U.S. Internal Revenue Code, these plans permit employees to put away and invest part of their paycheck before taxes are taken out (generally). Taxes are not paid until the money is withdrawn from the account, usually once an employee hits retirement.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 extends beyond the direct tax benefits. For employees, it acts as a structured and disciplined way to prepare for retirement, often boosted by employer contributions. For employers, offering a 401(k) shows a dedication to the long-term financial health of their employees, acting as a crucial tool for hiring, retention, aand employee happiness.
Common Challenges Westwood, MO Businesses Face With Company 401(k) Plans
A company 401(k) plan has been a boon for many Westwood, MO businesses. Nonetheless, establishing, handling, and refining a 401(k) plan requires careful consideration, clear strategy, and ongoing commitment. A few of the most common challenges businesses face include:
Choosing the Best Plan
There are numerous options out there for businesses looking for company 401(k) plans. Companies have to navigate these to ascertain which plan most aligns with their financial situation, business goals, and the needs of their employees. Factors such as plan type (for example, traditional vs. Safe Harbor), investment options, and matching contribution amounts all need to be considered.
Administration Difficulties
Managing a 401(k) plan isn't a singular task. From 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 nuances that come with 401(k) management.
Staying Compliant 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). Being current with these regulations and ensuring consistent compliance is absolutely essential to avert penalties and sustain the plan's tax-favored 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 buy in and understand how it's benefited them. It's vital to inform employees about the advantages of enrolling, the nature of employer matching, and the investment options available to them. An informed employee is likely to participate actively and make decisions that coincide with their financial goals
The best way to address these common concerns is by teaming up with a dependable Westwood, MO financial advisor that will help you understand the options available to you and your requirements and customize a company 401(k) plan that is optimal for your Westwood, MO business.
Correct Capital Wealth Management: Your Trusted Partner in Company 401(k) Planning in Westwood, MO
Your company requires a partner in Westwood, MO who understands your distinct needs, provides clarity in decision-making, and prioritizes what's in your best interest. Correct Capital Wealth Management stands as a trusted provider of custom 401(k) services in Westwood, MO for numerous companies. Below is what makes us apart:
- Fiduciary duty — At Correct Capital Wealth Management, we are fiduciary advisors. Meaning, we're legally and ethically bound to act in your best interest. As fiduciary advisors and CERTIFIED FINANCIAL PLANNER™ professionals, we are legally obligated to abide by a Code of Ethics and Standards of Conduct, in which we must:
- Demonstrate truthfulness, 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 are not constrained by affiliations with financial products or institutions. Our independent stance ensures that our advice is solely founded on 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 brings an established history of experience and success helping both local Westwood, MO and national businesses establish and administer their company 401(k) plans. Our team is currently managing over 30 plans in companies of all sizes, and oversee 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 Westwood, MO
Experienced financial advisors understand the nuances of company 401(k) plans in Westwood, MO and proactively seek avenues to enhance benefits for both the employer and employees. With our devotion to a customer-focused approach, we offer special value to companies looking to set up or enhance their 401(k) plans:
Personalized Plan Selection In line with Your Company’s Specific Needs
Every company has its very own set of goals, history, employee demographics, and financial situations. At Correct Capital, we acknowledge this diversity and adapt 401(k) plan options to fulfill these individual needs. By comprehending what makes your business tick, we're able to design 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 monitor how your team is keeping up with compliance checks, prompt reporting, and more, and offer you our consultory services to ensure your administrative responsibility do not become burdensome. Working with an experienced 401(k) provider in Westwood, MO allows businesses to focus on their core operations, knowing their company 401(k) plan is in good hands.
Employee Education and Involvement Programs
A 401(k) plan is merely as productive as its participation rate. We diligently communicate with employees, providing workshops, one-on-one meetings, and online 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 contributions, we endeavor to elevate employee participation and trust in their retirement planning. With Correct Capital, your employees will have their very own Westwood, MO retirement consultant.
Frequently Asked Questions (FAQs) About Company 401(k) Plans in Westwood, MO
Navigating the details of 401(k) plans can often result in doubts. In our commitment to openness and client education, we've compiled a list of FAQs about company 401(k) plans in Westwood, MO:
- How are company 401(k) plans funded?
Company 401(k) plans are chiefly 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 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, together with potential employer matching, loan provisions, and flexibility in investment options. Additionally, 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 choose to match employee contributions up to a certain percentage of the employee's earnings. This match can be one-to-one, 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 added $7,500 for people closer to retirement).
- How are 401(k) funds invested?
401(k) funds are typically invested in a selection of options, largely 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 monitor the specific investment choices, and employees can customize their portfolios according to their risk tolerance and financial goals.
- What are the fees associated with 401(k) plans?
Fees can vary according to the plan provider, investments, or and whether the company wants to pay 401k plan fees. Typical fees consist of administrative and recordkeeping fees, individual service fees, and investment-related fees. Investment fees for passive (index) fund managers can substantially reduce certain fees. Fees typically range from .5% to 2%, and the average fee is approximately 1% of assets managed.
- What the key responsibilities of an employer offering a company 401(k) plan?
Employers are in charge of choosing and overseeing 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 Westwood, MO, Correct Capital can take on a lot of the fiduciary duty involved off your shoulders.
Other services we offer in Westwood, MO include:
Call Correct Capital for Your Company 401(k) Plans in Westwood, MO Today
The right advice when offering your company 401(k) plan in Westwood, MO can make every bit of difference. Correct Capital Wealth Management, founded in Westwood, MO, gives 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 customized to satisfy the unique needs of your business 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 Westwood, MO today.
