Retirement plan consultants in Huntsville, AL. Sponsoring a retirement plan such as 401(k) is a strategic step for Huntsville, AL companies and business owners looking for a competitive advantage. These plans are a key factor in attracting and retaining top talent, providing employees with a feeling of stability, and fostering a loyal 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 variety of plans available, regulatory compliance, and tax considerations can be overwhelming.
Correct Capital Wealth Management is an independent Huntsville, AL 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 enjoy exploring the unique story behind each business 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 in search of a retirement plan consultant in Huntsville, AL 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 a member of our advisor team today.
Why Establish a Retirement Plan for Your Huntsville, AL Business?
To understand what a 401(k) or other retirement plan could mean for your Huntsville, AL business, it's crucial to examine how much it means to 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; 55% blame their employer for not doing enough 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)
- 60% of employees cited their employers' retirement plan as a reason they remain; 47% said it's an important reason to join a company; about four in ten ranked it in their top three most desired benefits (Source)
- 77% of employees with access to a plan choose to participate (Source)
- 78% of younger workers that are 401(k) plan participants are looking for customized investment advice for their plan (Source)
- Three-quarters of plan participants are "extremely confident" in their ability to make sound financial decisions with the help of a financial advisor (Source)
Retirement savings is a significant concern for most Americans, and Huntsville, AL businesses that offer retirement plans afford themselves a significant edge when it comes to attracting and retaining talent. Moreover, there are a bevy of benefits for both employers and employees that retirement plans offer:
Business Benefits
- Employer 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 , among other advantages from the SECURE ACT 2.0, help reduce start up 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
- Small, regular contributions can grow 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 Huntsville, AL Businesses
If you're considering setting up a 401(k) or other plan for your Huntsville, AL business, there are a multitude of plan options our retirement plan consultants can discuss with you:
- 401(k) Plans — The bedrock of American retirement plans, 401(k)s enable for diverse investments including stocks, bonds, mutual funds, and ETFs, and permit employees to save and invest a part of their income before taxes are deducted. 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 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 tailored for employees of non-profit entities.
- 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 offer a predetermined monthly withdrawal in retirement. These plans are largely employer-funded, and the company bears the investment risk.
- Cash Balance Plans — Cash balance plans are a type of defined benefit plan that accounts for each participant's balance in a hypothetical account, which increases every year through employer contributions and an interest credit rate. This plan offers consistent returns 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 an uncomplicated way for small businesses to sponsor retirement plans. Employers make contributions directly to an IRA established for each employee. SEPs are straightforward to manage, with no significant red tape, 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 designed for 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 salary 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 red tape associated with larger plans.
- Profit-Sharing Plans — Profit-sharing plans are versatile retirement solutions that enable employers to make optional contributions to their employees' retirement funds. Contributions are often 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 distributed and calculated among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs provide employees with company stock, offering them 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, 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 Huntsville, AL retirement plan consultants currently manage over 30 plans in companies of all sizes, and oversee over $230 million in total plan assets across the country. Our expertise and experience 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 appropriate retirement plan for your business, taking into account factors such as number of employees, financial goals, employee demographics, and tax considerations. The goal is to select a plan that provides the best benefits to your employees while also helping out your bottom line.
- 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 establishing a record-keeping system. Our Huntsville, AL retirement plan consultants can carry out and/or assist with all of these requirements.
- Plan changes — Perhaps 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 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 more closely align with your needs.
- Investment advice — As a Registered Investment Advisor (RIA), we possess a wide 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 analyzing the performance of different investment funds, determining their risk levels, and guaranteeing a diverse range of options to accommodate 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 adoption agreements for the plan, summary plan descriptions, and annual notices to participants.
- Ongoing participant education — Education is vital to ensuring that your employees understand 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 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 retirement plans are also subject to annual audits. Retirement plan consultants can help ensure your Huntsville, AL business stays compliant. Additionally, 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 Huntsville, AL include:
Huntsville, AL Retirement Plan Consultants | Correct Capital
As you think about the future prospects of your company and the well-being of your workforce, offering a retirement plan should be front and center. With our comprehensive suite of offerings and commitment to acting solely in your best interest, we'll help you lead your Huntsville, AL business and staff from where you are to where you want to go. To initiate creating a plan that aligns with your unique business and objectives, speak to a retirement plan consultant in Huntsville, AL today at 877-930-4015 or contact us online.
