Retirement plan consultants in Dayton, OH. Sponsoring a retirement plan such as 401(k) is a wise move for Dayton, OH businesses and business owners looking for a competitive advantage. These plans are a vital component in attracting and retaining top talent, providing employees with a sense of security, and fostering a loyal workforce. But, for businesses that have not established a retirement plan before, or for companies who'd like to make changes to their current plan, the variety of plans available, legal requirements, and tax considerations can be daunting.
Correct Capital Wealth Management is an independent Dayton, OH financial advisory firm that specializes in helping companies set up and maintain customized retirement plans, tailored to the needs of both your business and workforce. We love exploring the unique story behind each business 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 Dayton, OH to help set up a 401(k) or other plan, reach out to us via 877-930-4015, contact us online, or make an appointment with one of our financial advisors today.
Why Establish a Retirement Plan for Your Dayton, OH Business?
To understand what a 401(k) or other retirement plan could mean for your Dayton, OH business, it's essential to consider what a retirement plan means for your employees:
- 67% of U.S. retirees say there's a retirement crisis in the country; 40% worry they will outlive their retirement savings (Source)
- Almost 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, nearly two-thirds of respondents said their largest 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 key reason to join a company; 44% ranked it in their top three most desired benefits (Source)
- More than three-quarters of employees with access to a plan opt-in (Source)
- Nearly eight in ten of Millennial and Gen Z 401(k) plan participants are interested in customized investment advice for their plan (Source)
- 77% of plan participants are "extremely confident" in their ability to make the right decisions with their finances with the help of a financial advisor (Source)
Retirement savings is a major concern for most Americans, and Dayton, OH companies that sponsor retirement plans afford themselves a leg up when it comes to attracting and retaining talent. 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
- Tax-free earnings on assets
- 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, assist in reducing initial costs
- Higher employee retention lowers the annual cost of turnover
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 Dayton, OH Businesses
If you're looking into adopting a retirement plan for your Dayton, OH business, there are a multitude of plan options our retirement plan consultants can speak to you about:
- 401(k) Plans — The cornerstone of American retirement plans, 401(k)s allow for a wide range of investments including stocks, bonds, mutual funds, and ETFs, and permit employees to save and invest a part of their income before taxes are taken out. Employers can choose to match contributions. Safe Harbor 401(k) plans are essentially the same, but employer contributions are required to be fully vested immediately. 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 tailored for employees of tax-exempt organizations.
- Defined Benefit (Pension) Plans — While 401(k)s and other defined contribution plans operate based on employees contributing a specific amount or percentage of their earnings, defined benefit plans promise a guaranteed monthly withdrawal once an employee reaches retirement. These plans are largely employer-funded, and the company assumes 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 grows 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 401(k). It's an appealing option for businesses seeking a middle ground between the certainty of pensions and the flexibility of contribution plans.
- Simplified Employee Pension (SEP) IRAs — SEP plans offer a simple way for small businesses to offer retirement plans. Employers make contributions directly to an IRA set up for each employee. SEPs are straightforward to manage, with no significant paperwork, and contributions are 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 tailored to 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 paycheck to the plan, which employers must match up to a certain percentage. SIMPLE IRAs are a great choice for small businesses seeking to provide a more traditional retirement plan without the hassle of 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 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 calculated and distributed 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 be part of a company's succession planning as ownership shares can be passed to high performers who will eventually take the reins of the business.
What Can Correct Capital's Dayton, OH Retirement Plan Consultants Do for My Business?
Our Dayton, OH retirement plan consultants are currently managing over 30 plans in companies of all sizes, and represent over $230 million in total plan assets across the United States. Our experience and expertise enables 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 specific company, considering factors such as company size, financial goals, employee demographics, and tax considerations. The goal is to choose a plan that offers the best benefits to your employees while also helping out your bottom line.
- 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 Dayton, OH retirement plan consultants can manage and/or assist with all of these requirements.
- Plan changes — Maybe 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 accommodate business growth, changes in workforce, or shifts in financial goals. This includes introducing new options, adjusting 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 array of analytical tools, resources, and experience to help with the selection of investment options that should be made available within the plan. This includes analyzing the performance of different investment funds, assessing your employees' risk tolerance, and ensuring a diverse range of options to meet 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 plan adoption agreements, plan summaries, 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 informed investment choices. Correct Capital's retirement plan consultants offer quarterly webinars to plan participants and offer personalized 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 need to stay legally compliant with their retirement plans. Most 401(k) plans are also subject to annual audits. Retirement plan consultants can make sure your Dayton, OH 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 Dayton, OH include:
Dayton, OH Retirement Plan Consultants | Correct Capital
As you think about the future prospects of your company and the welfare of your workforce, implementing a retirement plan should be at the forefront. With our complete range of offerings and deep commitment to acting exclusively in your best interest, we'll help you lead your Dayton, OH company and staff from where you are to where you want to go. To initiate crafting a plan that aligns with your unique business and goals, reach out to a retirement plan consultant in Dayton, OH today at 877-930-4015 or contact us online.
