Retirement plan consultants in Austin, TX. Establishing a retirement plan like a 401(k) is a smart move for Austin, TX businesses and business owners looking for a competitive advantage. These plans are a crucial element in retaining and attracting top talent, providing employees with a sense of security, and fostering a committed workforce. But, for businesses who haven't established a retirement plan before, or for companies in search of a better option, the wealth of plan options, legal requirements, and tax considerations can be overwhelming.
Correct Capital Wealth Management is an independent Austin, TX financial advisory firm that specializes in helping companies set up and maintain customized retirement plans, built around the needs of both your business and workers. We enjoy exploring the unique story behind every company we work with and getting to know the entrepreneurial spirit that drives their leaders. As fiduciary advisors, our primary objective is to act in your best interest. If you're in search of a retirement plan consultant in Austin, TX to help set up a 401(k) or other plan, give us a call at 877-930-4015, contact us online, or schedule an appointment with a member of our advisor team today.
Benefits of Starting a Retirement Plan for Your Austin, TX Business
To understand what a 401(k) or other retirement plan could do for your Austin, TX company, it's important to examine how much it means to your employees:
- 67% of U.S. retirees say the country is in a retirement crisis; four out of ten worry they will live longer than their savings last (Source)
- Nearly half of retirees say their income wasn't sufficient to save for retirement; over half blame their employer for not providing adequate resources to help them save (Source)
- In a recent study, over half of respondents said their primary source of income in retirement will be their 401(k) (Source)
- 60% of employees cited their employers' retirement plan as a reason they remain; 47% said it's an key reason to join a company; almost half ranked it in their three top most desired benefits (Source)
- More than three-quarters of employees with access to a plan choose to participate (Source)
- Nearly eight in ten of younger workers that are 401(k) plan participants are keen on personalized investment advice for their plan (Source)
- 77% of plan participants are "extremely confident" in their ability to make sound financial decisions with the help of a financial advisor (Source)
Retirement savings is a huge concern for most Americans, and Austin, TX businesses that offer retirement plans give themselves a significant edge when it comes to securing and keeping valuable employees. Additionally, there are a host of benefits for both employers and employees when it comes to offering retirement plans:
Business Benefits
- Matching contributions are tax-deductible
- Earnings on plan assets are tax-free
- A range of plan choices and the flexibility to adapt a plan to your business
- Tax credits and other benefits from the SECURE ACT 2.0, can lower initial costs
- Higher retention rates lower the annual cost of training new employees
Employee Benefits
- Employees can lower their taxable income
- No taxation on contributions and earnings until withdrawal
- Easy-to-make contributions through payroll deductions
- Even small, regular contributions can accumulate into significant retirement savings
- Participant assets can be rolled over if they change employers
- Improved financial security in retirement
Types of Retirement Plans Available for Austin, TX Businesses
If you're considering setting up a 401(k) or other plan for your Austin, TX business, there are a variety of plan options that may be right for your business:
- 401(k) Plans — The bedrock of American retirement plans, 401(k)s enable for a wide range of investments including stocks, bonds, mutual funds, and ETFs, and permit employees to save and invest a part of their earnings before taxes are deducted. Employers can choose to match contributions. Safe Harbor 401(k) plans are largely the same, but employer contributions must be fully vested immediately. In exchange, safe harbor 401(k)s are not subject to annual nondiscrimination tests.
- 403(b) Plans — Comparable to 401(k)s, 403(b)s are tailored for employees of tax-exempt organizations.
- Defined Benefit (Pension) Plans — While 401(k)s and other defined contribution plans are based on employees contributing a certain amount or percentage of their paycheck, defined benefit plans offer a predetermined monthly withdrawal in retirement. These plans are largely employer-funded, and the company bears the investment risk.
- Cash Balance Plans — Cash balance plans are one form of defined benefit plan that tracks each participant's balance in a hypothetical account, which increases annually through employer contributions and an interest credit rate. This plan offers predictable benefits like a traditional pension but with personalized accounts similar to a defined contribution plan. It's an attractive option for businesses looking for a middle ground between the certainty of pensions and the flexibility of contribution plans.
- Simplified Employee Pension (SEP) IRAs — SEP plans offer an uncomplicated way for small businesses to offer retirement plans. Employers make contributions directly to an IRA set up for each employee. SEPs are easy to administer, with minimal paperwork, and contributions are tax-deductible for the business. They're especially well-suited for businesses with variable profits, as the contribution amounts can be modified annually.
- Savings Incentive Match Plan for Employees (SIMPLE) IRA — SIMPLE IRAs are designed for small businesses with 100 or fewer employees. These plans are simpler to manage than 401(k)s but allow employees to contribute a percentage of their earnings to the plan, which employers are required to match up to a certain percentage. SIMPLE IRAs are an excellent option for small businesses looking to offer a more traditional retirement plan without the hassle of larger plans.
- Profit-Sharing Plans — Profit-sharing plans are flexible retirement solutions that enable employers to make discretionary contributions to their employees' retirement funds. Contributions are often made out of the company's profits, giving employees an incentive to contribute to the company's success. These plans can be structured in many ways, offering flexibility in how contributions are distributed and calculated among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs give employees with company stock, offering them a stake of ownership in the business. ESOPs are not only a retirement benefit but also synchronize employees' interests with the company's performance, potentially boosting productivity and job satisfaction. ESOPs can also align with a company's succession planning as ownership shares can be passed to high performers who will eventually take the reins of the business.
How Can Correct Capital Help My Business's Retirement Plan?
Our Austin, TX retirement plan consultants manage over 30 plans in companies of all sizes, and oversee over $230 million in total plan assets across the United States. Our expertise and experience enables us to offer a range of services that include both the initial set up and ongoing support:
- Plan selection — We'll aid in evaluating and selecting the most suitable retirement plan for your specific company, bearing in mind factors such as company size, financial goals, employee demographics, and tax advantages. The goal is to decide on a plan that provides the best benefits to your employees while also helping out your bottom line.
- Establishing the plan — Several steps are required to make the retirement plan legitimate. These include creating a formal written agreement, arranging a trust for trust assets, notifying eligible employees about the terms of the plan, and creating a record-keeping system. Our Austin, TX retirement plan consultants can carry out and/or assist with each of these steps.
- Plan changes — Perhaps you dislike your current plan, or your business has evolved and you need a retirement plan consultant that can help your retirement plan adapt as you grow. Consultants can help you with modifying your plan to adapt to business growth, changes in workforce, or shifts in financial goals. This includes introducing new options, modifying contribution limits, or transitioning to a different type of plan to better meet your needs.
- Investment advice — As a Registered Investment Advisor (RIA), we possess a wide array of analytical tools, resources, and experience to assist with the selection of investment options that should be made available within the plan. This includes assessing the performance of different investment funds, evaluating their risk levels, and providing a diverse range of options to accommodate the varying investment preferences and retirement goals of your employees.
- Plan documentation — Retirement plan consultants help in drafting and maintaining all essential plan documentation, ensuring compliance with IRS and Department of Labor regulations. This includes plan adoption agreements, summary plan descriptions, and annual notices to participants.
- Plan participant education — Education is key to ensuring that your employees comprehend the benefits of participating in the retirement plan and how to make educated investment choices. Correct Capital's retirement plan consultants engage in quarterly webinars to plan participants and offer personalized coaching for topics such as retirement planning, investment risk, and how to maximize their retirement savings.
- Help with regulations and audits — The IRS, SEC, ERISA, and other laws and institutions set rigid frameworks for how companies need to stay legally compliant with their retirement plans. Most retirement plans are also subject to annual audits. Retirement plan consultants can help ensure your Austin, TX business stays compliant. Additionally, hiring Correct Capital as your retirement plan consultant allows us to take much of the fiduciary duty related to the plan off your shoulders.
Other services we offer in Austin, TX include:
- Family Wealth Planning
- Financial Planning for Business Owners
- Comprehensive Financial Planning
- Retirement Income Planning
- Investment Planning
- Retirement Financial Planning
- Independent Financial Advisor
- Roth Conversion
- Investment Management
- 401(k) Audit
Austin, TX Retirement Plan Consultants | Correct Capital
As you contemplate the future prospects of your company and the well-being of your workforce, offering a retirement plan should be front and center. With our wide array of offerings and deep commitment to acting exclusively in your best interest, we'll help you get your Austin, TX company and employees from where you are to where you want to go. To start creating a plan that matches with your unique company and goals, talk to a retirement plan consultant in Austin, TX today at 877-930-4015 or contact us online.
