Company 401(k) plans in Westwood, MO. Current inflation rates as well as a favorable job market for employees, two primary worries have emerged for many businesses: cost-saving and hiring and retaining high performers . Setting up a 401(k) plan can help you accomplish both of these objectives. Company 401(k) plans not only function as strong tools for retirement savings, but also highlight a company's commitment to their workers' long-term financial security – all while offering savings for the company in the form of reduced taxes. Thus, company 401(k) plans are a commitment to a brighter tomorrow – both for your business and for its employees.
In a time inundated with financial products, services, and shifting regulations, navigating the retirement plan landscape is often intimidating for many Westwood, MO business owners. Companies need the insight of impartial and independent financial advice in order to be at their best. That's where Correct Capital Wealth Management comes into play. If you're thinking of setting up a company 401(k) plan for your Westwood, MO business, or already have one and want to modify it, call Correct Capital now at 877-930-4015, or contact us through our website.
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 permit employees to set aside and invest part of their paycheck before taxes are deducted (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 tax deductible.
The significance of a 401(k) plan goes beyond the immediate tax benefits. For employees, it function as a well-organized and disciplined way to prepare for retirement, often supplemented by employer contributions. For employers, offering a 401(k) indicates a dedication to the long-term economic stability of their staff, serving as an invaluable tool for recruitment, 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, setting up, overseeing, and monitoring a 401(k) plan requires thorough thinking, clear strategy, and persistent commitment. Some of the most frequent challenges businesses encounter include:
Selecting the Best Plan
There are numerous options available for businesses in search of company 401(k) plans. Companies have to sift through these to determine which plan best 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 contribution structures are all crucial.
Administration Complexities
Administering a 401(k) plan is an ongoing process. From recordkeeping through to ensuring timely contributions, the administrative responsibilities are substantial. Companies must keep up with enrollment periods, distributions, loan provisions, and other intricacies that are associated with 401(k) management.
Staying Compliant with Regulations
401(k) plans are governed regulatory oversight, set chiefly 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 absolutely vital to avoid penalties and keep the plan's tax-beneficial status.
Teaching Employees About The Company 401(k) Plan
A 401(k) plan's success doesn't merely hinge on its compliance; your employees need to buy in and understand how it's benefited them. It's vital 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 is by teaming up with a dependable Westwood, MO financial advisor that will help you understand your options and your needs and tailor 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, offers 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 Westwood, MO for numerous companies. Here’s what sets us apart:
- Fiduciary duty — At Correct Capital Wealth Management, we are fiduciary advisors. Meaning, we're 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 adhere to 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
- Uphold the confidentiality and safeguard the privacy of client information
- Behave in a manner that reflects well on the financial planning profession
- Real independence — We are not tied down by affiliations with financial products or institutions. Our independent stance ensures that our advice is purely founded on what we believe is best for your business, unaffected by external biases or incentives
- Proven experience in company 401(k) plans — Correct Capital Wealth Management brings a proven history of experience and success assisting both local Westwood, MO and national businesses create and administer their company 401(k) plans. Our team is currently managing over 30 plans in both small and large companies, 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 Westwood, MO
Experienced financial advisors understand the nuances of company 401(k) plans in Westwood, MO and actively seek avenues to optimize benefits for both the business and employees. With our devotion to a customer-focused approach, we offer unique value to companies seeking to establish or enhance their 401(k) plans:
Customized Plan Selection In line with Your Company’s Particular Needs
Each company has its own group of goals, culture, employee demographics, and financial situations. At Correct Capital, we understand this diversity and adapt 401(k) plan options to each of our clients' individual needs. By understanding what makes your business tick, we're able to design a retirement plan that aligns business and employees' interests.
Simplified Administration and Continual Management
Dealing with a 401(k) plan can be administratively intensive. We simplify this process for you. We help monitor how your team is keeping up with compliance checks, punctual reporting, and more, and offer you our consultory services to ensure your administrative obligations do not become burdensome. Having an experienced 401(k) provider in Westwood, MO allows businesses to focus on their main operations, knowing their company 401(k) plan is in good hands.
Employee Education and Participation Programs
A 401(k) plan is merely as productive as its participation rate. We diligently engage with employees, giving sessions, one-on-one meetings, and digital resources to inform them about their retirement benefits. By clarifying financial concepts and underscoring the importance of early and consistent 401(k) savings, we endeavor to elevate employee participation and confidence 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
Traversing the details of 401(k) plans can often result in doubts. In our commitment to openness and client education, we've assembled a list of frequently asked questions about company 401(k) plans in Westwood, MO:
- In what way are company 401(k) plans funded?
Company 401(k) plans are primarily funded through voluntary salary deferrals from employees' paychecks. Furthermore, 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) versus other retirement options?
Company 401(k) plans offer higher contribution limits compared to many other retirement options such as IRAs, in addition to likely employer matching, loan provisions, and a greater variety of investment options. Furthermore, 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 earnings. This match can be one-to-one, or a different ratio, and the employee's total contribution, comprising yours and their contributions, cannot exceed a given 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 selection 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 financial goals.
- What are the fees related to 401(k) plans?
Fees depend largely on the plan provider, investments, or and whether or not 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 considerably reduce investment cost. 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 responsible for selecting and watching the plan provider, ensuring compliance with federal regulations, providing 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 much of the liability involved off your shoulders.
Other services we offer in Westwood, 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 Westwood, MO Today
The appropriate advice when offering your company 401(k) plan in Westwood, MO can make all the difference. Correct Capital Wealth Management, based in Westwood, 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 adapted to satisfy the unique needs of your business and its employees. Arrange a meeting with one of our financial advisors, reach out us at 877-930-4015, or contact us online to get started with your company 401(k) plans in Westwood, MO now.
