Retirement plan consultants in Durham, NC. Establishing a retirement plan such as 401(k) is a strategic move for Durham, NC businesses and business owners looking for a competitive advantage. Retirement plans are a vital component in retaining and attracting top talent, providing employees with a feeling of stability, and fostering a committed workforce. But, for businesses that have not set up 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 challenging.
Correct Capital Wealth Management is an independent Durham, NC financial advisory firm that specializes in assisting companies set up and manage unique retirement plans for your unique business and workforce. We enjoy exploring the unique story behind every company we work with and getting to know what makes them tick. 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 Durham, NC 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 one of our financial advisors today.
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 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 providing adequate resources to help them save (Source)
- In a recent study, 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; 47% said it's an key 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 participate (Source)
- 78% of Gen Z and Millennial 401(k) plan participants are interested in personalized 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 huge concern for most Americans, and Durham, NC companies that offer retirement plans provide themselves a competitive advantage when it comes to securing and keeping valuable employees. Beyond that, there are a bevy of benefits for both employers and employees that retirement plans offer:
Business Benefits
- Tax deductions for matching contributions
- Tax-free earnings on assets
- A range of plan choices and the flexibility to adapt a plan to your business
- Tax credits , among other advantages from the SECURE ACT 2.0, can lower initial costs
- Higher retention rates lower 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
- Even small, regular contributions can accumulate into significant retirement savings
- Participant assets can be rolled over if they change employers
- Enhanced financial wellbeing in retirement
Types of Retirement Plans Available for Durham, NC Businesses
If you're considering adopting a retirement plan for your Durham, NC business, there are a multitude of plan options our retirement plan consultants can discuss with you:
- 401(k) Plans — The foundation 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 taken out. Employers have the option 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 specifically designed 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 certain amount or percentage of their income, defined benefit plans offer a specific monthly withdrawal once an employee reaches retirement. These plans are primarily 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 increases every year 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 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 a straightforward way for small businesses to offer retirement plans. Employers make contributions directly to an IRA established 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 salary to the plan, which employers are required to 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 red tape associated with larger plans.
- Profit-Sharing Plans — Profit-sharing plans are flexible retirement solutions that allow employers to make optional contributions to their employees' retirement funds. Contributions are typically made out of the company's profits, 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, providing a stake of ownership in the business. ESOPs are not only a retirement benefit but also synchronize financial goals of employees with those of 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 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 oversee over $230 million in total plan assets across the United States. Our experience and expertise enables us to offer a range of services that include both the initial set up and ongoing support:
- Plan selection — We'll help with evaluating different plan options and selecting the most suitable 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 choose a plan that provides the best benefits to your employees while being economical for your business.
- 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 setting up a record-keeping system. Our Durham, NC retirement plan consultants can carry out and/or assist with each of these steps.
- Plan changes — Perhaps you're unsatisfied 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 assist you in 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 diverse array of analytical tools, resources, and experience to assist with the selection of investment options that ought to 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 assist in drafting and maintaining all necessary 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.
- Plan participant education — Informing participants is paramount to ensuring that your employees understand the benefits of participating in the retirement plan and how to make wise 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 set rigid guidelines 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 Durham, NC business stays compliant. Furthermore, 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 Durham, NC include:
Durham, NC Retirement Plan Consultants | Correct Capital
As you think about the future prospects of your company and the welfare of your employees, providing a retirement plan should be a top priority. With our complete range of offerings and commitment to acting solely in your optimal interest, we'll help you get your Durham, NC company and staff from where you are to where you want to go. To start creating a plan that aligns with your unique company and objectives, speak to a retirement plan consultant in Durham, NC today at 877-930-4015 or contact us online.
