Retirement plan consultants in Columbus, OH. Adopting a retirement plan such as 401(k) is a wise step for Columbus, OH businesses and business owners looking for a competitive advantage. Retirement plans are a key factor in attracting and retaining top talent, providing employees with a sense of security, and fostering a loyal workforce. But, for businesses who haven't established a retirement plan before, or for companies looking for a better option, the variety of plans available, regulatory compliance, and tax considerations can be challenging.
Correct Capital Wealth Management is an independent Columbus, OH financial advisory firm that specializes in helping companies establish and maintain customized retirement plans, built around the needs of both your business and workforce. We love exploring the unique story behind each business we work with and getting to know what makes them tick. As fiduciary advisors, our primary objective is to act in your best interest. If you're in search of a retirement plan consultant in Columbus, OH to help create a 401(k) or other plan, reach out to us via 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 Columbus, OH Business
To understand what a 401(k) or other retirement plan could do for your Columbus, OH business, it's essential to consider how much it means to your employees:
- 67% of U.S. retirees say the country is in a retirement crisis; 40% worry they will live longer than their savings last (Source)
- 45% of retirees say their income wasn't sufficient to save for retirement; over half blame their employer for not doing enough to help them save (Source)
- In one survey, over half of respondents said their main source of income in retirement will be their 401(k) (Source)
- Three-fifths of employees cited their employers' retirement plan as a reason they remain; nearly half said it's an important reason to join a company; about four in ten ranked it in their three most desired most desired benefits (Source)
- 77% of employees with access to a plan opt-in (Source)
- Nearly eight in ten of Gen Z and Millennial 401(k) plan participants are interested in customized investment advice for their plan (Source)
- Three-quarters of plan participants are "extremely confident" in their ability to make the right financial decisions with the help of a financial advisor (Source)
Retirement savings is a major concern for most Americans, and Columbus, OH companies that sponsor retirement plans give themselves a competitive advantage when it comes to attracting and retaining talent. Moreover, there are a multitude of benefits for both employers and employees when it comes to offering retirement plans:
Business Benefits
- Employer contributions are tax-deductible
- Tax-free earnings on assets
- Variety of plan options and flexibility to adapt a plan to your business
- Tax credits and other benefits from the SECURE ACT 2.0, help reduce start up 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
- Contributions are easy to make through payroll deductions
- Small, regular contributions can grow into significant retirement savings
- Assets can be rolled over by participants if they change employers
- Improved financial security in retirement
Types of Retirement Plans Available for Columbus, OH Businesses
If you're considering sponsoring a 401(k) or other plan for your Columbus, OH business, there are a variety of plan options our retirement plan consultants are ready to discuss:
- 401(k) Plans — The cornerstone of American retirement plans, 401(k)s enable for diverse investments including stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a portion 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 must be fully vested when made. 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 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 paycheck, defined benefit plans offer a specific monthly withdrawal in retirement. These plans are largely employer-funded, and the company assumes the investment risk.
- Cash Balance Plans — Cash balance plans are a type 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 personalized accounts similar to a defined contribution plan. It's an attractive option for businesses looking for a middle ground between the security of pension plans and the adaptability of contribution plans.
- Simplified Employee Pension (SEP) IRAs — SEP plans offer a straightforward way for small businesses to sponsor retirement plans. Employers make contributions directly to an IRA established 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 fluctuating income, as the contribution amounts can be modified annually.
- Savings Incentive Match Plan for Employees (SIMPLE) IRA — SIMPLE IRAs are tailored to 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 percentage of their salary to the plan, which employers must 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 red tape associated with larger plans.
- Profit-Sharing Plans — Profit-sharing plans are versatile retirement solutions that enable employers to make discretionary contributions to their employees' retirement funds. Contributions are usually made from company stock, giving employees a direct stake in 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 give employees with company stock, providing a stake of ownership in the business. ESOPs are not only a retirement benefit but also align financial goals of employees with those of the company's performance, which can boost 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 lead of the business.
What Can Correct Capital's Columbus, OH Retirement Plan Consultants Do for My Business?
Our Columbus, OH retirement plan consultants manage over 30 plans in both small and large companies, and represent over $230 million in total plan assets across the country. Our experience and expertise allows us to offer a range of services that encompass both the initial set up and ongoing support:
- Plan selection — We'll help with evaluating and selecting the most appropriate retirement plan for your business, bearing in mind factors such as number of employees, financial goals, employee demographics, and tax considerations. The goal is to choose a plan that provides the best benefits to your employees while being economical for your business.
- Establishing the plan — Multiple steps are required to make the retirement plan legitimate. These include adopting a written plan, arranging a trust for trust assets, notifying eligible employees about terms and conditions, and setting up a record-keeping system. Our Columbus, OH retirement plan consultants can carry out and/or assist with all of these requirements.
- Plan changes — Maybe you're unsatisfied 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 accommodate business growth, changes in workforce, or shifts in financial goals. This includes adding new features, adjusting contribution limits, or transitioning to a different type of plan to more closely align with your needs.
- Investment advice — As a Registered Investment Advisor (RIA), we possess a diverse 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, determining their risk levels, and ensuring a diverse range of options to accommodate the different needs of different employees.
- Plan documentation — Retirement plan consultants assist 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 key to ensuring that your employees understand the benefits of participating in the retirement plan and how to make educated investment choices. Correct Capital's retirement plan consultants carry out 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 establish rigid guidelines for how companies establish and maintain their retirement plans. Most retirement plans are also subject to annual audits. Retirement plan consultants can assist in ensuring your Columbus, OH business stays compliant. Additionally, hiring Correct Capital as your retirement plan consultant helps remove much of the fiduciary duty related to the plan from your responsibilities.
Other services we offer in Columbus, OH include:
Columbus, OH Retirement Plan Consultants | Correct Capital
As you consider the future prospects of your company and the welfare of your employees, offering a retirement plan should be front and center. With our comprehensive suite of offerings and dedication to acting only in your best interest, we'll help you guide your Columbus, OH business and staff from where you are to where you want to go. To begin developing a plan that matches with your individual business and objectives, reach out to a retirement plan consultant in Columbus, OH today at 877-930-4015 or contact us online.
