Retirement plan consultants in Chattanooga, TN. Sponsoring a retirement plan like a 401(k) is a wise step for Chattanooga, TN businesses and business owners looking for a way to stand out. Retirement plans are a key factor in retaining and attracting top talent, providing employees with a feeling of stability, and fostering a loyal workforce. But, for businesses that have not set up a retirement plan before, or for companies who'd like to make changes to their current plan, the variety of plans available, regulatory compliance, and tax considerations can be daunting.
Correct Capital Wealth Management is an independent Chattanooga, TN financial advisory firm that specializes in assisting companies establish and maintain customized retirement plans, tailored to the needs of both your business and employees. We love exploring the unique story behind every company we work with and getting to know the entrepreneurial spirit that drives their leaders. As fiduciary advisors, we have a legal and ethical obligation to act only in your best interest. If you're looking for a retirement plan consultant in Chattanooga, TN to help create a 401(k) or other plan, give us a call at 877-930-4015, contact us online, or schedule an appointment with one of our financial advisors today.
Benefits of Starting a Retirement Plan for Your Chattanooga, TN Business
To understand what a 401(k) or other retirement plan could do for your Chattanooga, TN business, it's essential to look at what a retirement plan means for your employees:
- Two-thirds of U.S. retirees say there's a retirement crisis in the country; four out of ten worry they will outlive their retirement savings (Source)
- Nearly half of retirees say their income wasn't high enough to save for retirement; over half blame their employer for not providing adequate resources to help them save (Source)
- In one survey, 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; nearly half said it's an essential reason to join a company; about four in ten ranked it in their three top most desired benefits (Source)
- 77% of employees with access to a plan participate (Source)
- Nearly eight in ten of Millennial and Gen Z 401(k) plan participants are keen on personalized investment advice for their plan (Source)
- Three-quarters of plan participants are "extremely confident" in their ability to make the right decisions with their money with the help of a financial advisor (Source)
Saving for our golden years is a huge concern for most Americans, and Chattanooga, TN businesses that sponsor retirement plans give themselves a competitive advantage when it comes to attracting and retaining talent. Beyond that, there are a bevy of benefits for both employers and employees when it comes to offering retirement plans:
Business Benefits
- Tax deductions for matching contributions
- 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 employee retention lowers the annual cost of training new employees
Employee Benefits
- Employee contributions can reduce 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
- Assets can be rolled over by participants if they change employers
- Improved financial security in retirement
Retirement Plan Options Available for Chattanooga, TN Businesses
If you're looking into adopting a retirement plan for your Chattanooga, TN business, there are a multitude of plan options our retirement plan consultants can speak to you about:
- 401(k) Plans — The foundation of American retirement plans, 401(k)s allow for diverse investments including stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a percentage of their paycheck before taxes are taken out. Employers can choose to match contributions. Safe Harbor 401(k) plans are largely the same, but employer contributions are required to be fully vested when made. In exchange, safe harbor 401(k)s are not subject to annual nondiscrimination tests.
- 403(b) Plans — Much like 401(k)s, 403(b)s are specifically designed 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 specific amount or percentage of their income, defined benefit plans offer a specific monthly withdrawal once an employee reaches retirement. These plans are largely employer-funded, and the company takes on 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 annual interest rate. This plan offers predictable benefits like a traditional pension but with individual accounts similar to a defined contribution plan. It's an appealing option for businesses seeking a middle ground between the security of pension plans and the flexibility of contribution plans.
- Simplified Employee Pension (SEP) IRAs — SEP plans offer a simple way for small businesses to provide retirement benefits. Employers make contributions directly to an IRA established for each employee. SEPs are easy to administer, with minimal red tape, and contributions are deductible for the business. They're particularly well-suited for businesses with variable profits, as the contribution amounts can be adjusted annually.
- Savings Incentive Match Plan for Employees (SIMPLE) IRA — SIMPLE IRAs are designed for small businesses with 100 or fewer employees. These plans are easier to set up and maintain than 401(k)s but allow employees to contribute a part 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 seeking to provide a more traditional retirement plan without the complexities of larger plans.
- Profit-Sharing Plans — Profit-sharing plans are versatile retirement solutions that allow employers to make discretionary contributions to their employees' retirement funds. Contributions are often made from company stock, giving employees an incentive to contribute to the company's bottom line. These plans are adaptable in many ways, offering flexibility in how contributions are calculated and distributed among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs offer employees with company stock, providing a stake of ownership in the business. ESOPs are not only a retirement benefit but also align employees' interests with the company's performance, potentially boosting productivity and job satisfaction. ESOPs can also complement a company's succession planning as ownership shares can be passed to top employees who will eventually take the reins of the business.
What Can Correct Capital's Chattanooga, TN Retirement Plan Consultants Do for My Business?
Our Chattanooga, TN retirement plan consultants manage over 30 plans in companies of all sizes, and represent over $230 million in total plan assets across the U.S. Our expertise and experience enables us to offer a range of services that encompass both the initial set up and ongoing support:
- Plan selection — We'll assist in evaluating and selecting the most fitting retirement plan for your business, taking into account factors such as number of employees, financial goals, employee demographics, and tax advantages. The goal is to decide on a plan that offers the best benefits to your employees while being cost-effective for your business.
- Establishing the plan — Several steps are required to formally put the retirement plan in place. These include adopting a written plan, arranging a trust for trust assets, notifying eligible employees about the terms of the plan, and setting up a record-keeping system. Our Chattanooga, TN retirement plan consultants can manage and/or assist with each of these steps.
- Plan changes — Possibly you dislike your current plan, or your business has evolved and you need a retirement plan consultant that can help your retirement plan evolve with you. Consultants can guide you through modifying your plan to adapt to business growth, changes in workforce, or shifts in financial goals. This includes adding new features, modifying contribution limits, or transitioning to a different type of plan to suit your needs.
- Investment advice — As a Registered Investment Advisor (RIA), we possess a diverse range of analytical tools, resources, and experience to aid in the selection of investment options that should be made available within the plan. This includes examining the performance of different investment funds, evaluating their risk levels, and ensuring a diverse range of options to accommodate the different needs of different employees.
- Plan documentation — Retirement plan consultants help in drafting and maintaining all required plan documentation, ensuring compliance with IRS and Department of Labor regulations. This includes adoption agreements for the plan, summary plan descriptions, and annual notices to participants.
- Ongoing participant education — Informing participants is vital to ensuring that your employees grasp the benefits of participating in the retirement plan and how to make educated investment choices. Correct Capital's retirement plan consultants conduct quarterly webinars to plan participants and offer one-on-one coaching for topics such as retirement planning, investment risk, and how to enhance their retirement savings.
- Help with regulations and audits — The IRS, SEC, ERISA, and other laws and institutions establish rigid frameworks for how companies establish and maintain their retirement plans. Most 401(k) plans are also subject to annual audits. Retirement plan consultants can help ensure your Chattanooga, TN business stays compliant. Moreover, hiring Correct Capital as your retirement plan consultant enables us to assume much of the fiduciary duty related to the plan from your responsibilities.
Other services we offer in Chattanooga, TN include:
Chattanooga, TN Retirement Plan Consultants | Correct Capital
As you consider the future of your business and the well-being of your employees, offering a retirement plan should be at the forefront. With our comprehensive suite of offerings and commitment to working exclusively in your optimal interest, we'll help you lead your Chattanooga, TN company and employees from where you are to where you want to go. To initiate crafting a plan that aligns with your individual business and objectives, reach out to a retirement plan consultant in Chattanooga, TN today at 877-930-4015 or contact us online.
