Retirement plan consultants in Durham, NC. Setting up a retirement plan such as 401(k) is a smart step for Durham, NC businesses and business owners looking for a way to stand out. Retirement plans are a key factor in attracting and retaining top talent, providing employees with a sense of security, and fostering a productive workforce. But, for businesses who haven't set up a retirement plan before, or for companies who'd like to make changes to their current plan, the wealth of plan options, regulatory compliance, and tax considerations can be daunting.
Correct Capital Wealth Management is an independent Durham, NC financial advisory firm that specializes in assisting companies establish and maintain unique retirement plans for your unique business and workforce. We love exploring the unique story behind every company we work with and getting to know what makes them tick. As fiduciary advisors, our only goal is to act in your best interest. If you're in search of a retirement plan consultant in Durham, NC 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.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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Why Establish a Retirement Plan for Your Durham, NC Business?
To understand what a 401(k) or other retirement plan could do for your Durham, NC company, it's important to consider what a retirement plan means for your employees:
- 2 in 3 U.S. retirees say there's a retirement crisis in the country; 2 in 5 worry they will outlive their retirement savings (Source)
- 45% of retirees say their income wasn't high enough to save for retirement; over half blame their employer for not doing enough to help them save (Source)
- In one survey, 62% of respondents said their largest 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 important reason to join a company; 44% ranked it in their three top most desired benefits (Source)
- More than three-quarters of employees with access to a plan opt-in (Source)
- 78% of Gen Z and Millennial 401(k) plan participants are looking for customized investment advice for their plan (Source)
- 77% of plan participants are "extremely confident" in their ability to make the right financial decisions with the help of a financial advisor (Source)
Saving for retirement is a major concern for most Americans, and Durham, NC companies that offer retirement plans give themselves a significant edge when it comes to securing and keeping valuable employees. Beyond that, there are a host of benefits for both employers and employees that retirement plans offer:
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 start up costs
- Higher employee retention lowers the annual cost of turnover
Employee Benefits
- Employee contributions can reduce their taxable income
- Contributions and earnings are not taxed until withdrawal
- Easy-to-make contributions through payroll deductions
- Small, regular contributions can grow into significant retirement savings
- Participant assets can be rolled over if they change employers
- Enhanced financial wellbeing in retirement
Retirement Plan Options Available for Durham, NC Businesses
If you're thinking about establishing a 401(k) or other plan for your Durham, NC 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 allow for diverse investments including stocks, bonds, mutual funds, and ETFs, and permit employees to save and invest a portion 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 must be fully vested immediately. In exchange, safe harbor 401(k)s are not subject to annual nondiscrimination tests.
- 403(b) Plans — Similar 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 earnings, defined benefit plans offer a predetermined monthly withdrawal in retirement. These plans are mostly 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 annual interest rate. This plan offers consistent returns like a traditional pension but with personalized accounts similar to a defined contribution plan. It's an appealing option for businesses seeking a middle ground between the certainty of pensions 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 set up for each employee. SEPs are straightforward to manage, with no significant 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 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 percentage of their income 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 usually made from company stock, giving employees a direct stake in the company's success. These plans are adaptable in many ways, offering flexibility in how contributions are distributed and calculated among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs offer employees with company stock, offering them an ownership interest in the business. ESOPs are not only a retirement benefit but also synchronize financial goals of employees with those of the company's performance, which can boost productivity and job satisfaction. ESOPs can also align with a company's succession planning as ownership shares can be passed to top employees who will eventually take the reins of the business.
How Can Correct Capital Help My Business's Retirement Plan?
Our Durham, NC retirement plan consultants are currently managing over 30 plans in both small and large companies, and represent over $230 million in total plan assets across the U.S. Our experience and expertise allows 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, considering factors such as number of employees, financial goals, employee demographics, and tax considerations. The goal is to decide on 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 establishing a record-keeping system. Our Durham, NC retirement plan consultants can carry out and/or assist with each of these steps.
- Plan changes — Possibly 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 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 better meet your needs.
- Investment advice — As a Registered Investment Advisor (RIA), we possess a diverse array of analytical tools, resources, and experience to aid in the selection of investment options that should be made available within the plan. This includes analyzing the performance of different investment funds, evaluating their risk levels, and guaranteeing a diverse range of options to meet the different needs of different 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 — Informing participants is paramount to ensuring that your employees grasp the benefits of participating in the retirement plan and how to make informed investment choices. Correct Capital's retirement plan consultants conduct 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 retirement plans are also subject to annual audits. Retirement plan consultants can make sure your Durham, NC business stays compliant. Moreover, hiring Correct Capital as your retirement plan consultant helps remove much of the fiduciary duty related to the plan off your shoulders.
Other services we offer in Durham, NC include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Fiduciary Financial Advisor
- Self-Employed Retirement Plans
Durham, NC Retirement Plan Consultants | Correct Capital
As you think about the future of your company and the well-being of your employees, providing a retirement plan should be a top priority. With our comprehensive suite of offerings and dedication to working only in your optimal interest, we'll help you guide your Durham, NC business and staff from where you are to where you want to go. To initiate creating a plan that aligns with your distinct company and objectives, reach out to a retirement plan consultant in Durham, NC today at 877-930-4015 or contact us online.
