Retirement plan consultants in Joliet, IL. Establishing a retirement plan like a 401(k) is a wise move for Joliet, IL businesses and business owners looking for a way to stand out. Retirement 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 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 Joliet, IL financial consultancy firm that specializes in helping companies establish and maintain customized retirement plans, tailored to the needs of both your business and employees. We enjoy exploring the unique story behind every company we work with and getting to know the entrepreneurial spirit that guides 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 Joliet, IL 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 Joliet, IL Business?
To understand what a 401(k) or other retirement plan could mean for your Joliet, IL business, it's essential to examine how much it means to your employees:
- 67% of U.S. retirees say the country is in a retirement crisis; four out of ten 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, over half 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 essential reason to join a company; 44% ranked it in their three top most desired benefits (Source)
- 77% of employees with access to a plan participate (Source)
- 78% of Millennial and Gen Z 401(k) plan participants are keen on 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 huge concern for most Americans, and Joliet, IL companies that sponsor retirement plans provide themselves a leg up when it comes to attracting and retaining talent. Moreover, 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
- Earnings on plan assets are tax-free
- 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, assist in reducing start up costs
- Higher employee retention lowers the annual cost of training new employees
Employee Benefits
- Employees can lower their taxable income
- No taxation on contributions and earnings until withdrawal
- Contributions are easy to make 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
Retirement Plan Options Available for Joliet, IL Businesses
If you're looking into setting up a 401(k) or other plan for your Joliet, IL business, there are a range of plan options our retirement plan consultants can speak to you about:
- 401(k) Plans — The cornerstone of American retirement plans, 401(k)s enable for a wide range of investments including stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a portion 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 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 educational institutions and non-profits.
- Defined Benefit (Pension) Plans — While 401(k)s and other defined contribution plans are based on employees contributing a certain amount or percentage of their paycheck, defined benefit plans offer a predetermined 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 a type of defined benefit plan that accounts for each participant's balance in a hypothetical account, which grows 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 401(k). It's an attractive 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 an uncomplicated way for small businesses to offer retirement plans. Employers make contributions directly to an IRA set up for each employee. SEPs are easy to administer, with minimal 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 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 part of their paycheck to the plan, which employers must match up to a certain percentage. SIMPLE IRAs are an excellent option for small businesses looking to offer a more traditional retirement plan without the hassle of larger plans.
- Profit-Sharing Plans — Profit-sharing plans are flexible retirement solutions that enable employers to make optional 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 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 align financial goals of employees with those of the company's performance, potentially boosting 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 take the reins of the business.
What Can Correct Capital's Joliet, IL Retirement Plan Consultants Do for My Business?
Our Joliet, IL retirement plan consultants manage over 30 plans in both small and large companies, and represent over $230 million in total plan assets across the United States. 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 help with evaluating different plan options and selecting the most appropriate retirement plan for your unique company, considering factors such as company size, financial goals, employee demographics, and tax considerations. The goal is to select a plan that offers the best benefits to your employees while being efficient for your business.
- Establishing the plan — Several 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 Joliet, IL retirement plan consultants can handle 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 assist you in modifying your plan to adapt to 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 help with the selection of investment options that ought to be made available within the plan. This includes examining the performance of different investment funds, evaluating their risk levels, and providing a diverse range of options to suit the varying investment preferences and retirement goals of your employees.
- Plan documentation — Retirement plan consultants assist in drafting and maintaining all essential plan documentation, ensuring compliance with IRS and Department of Labor regulations. This includes adoption agreements for the plan, plan summaries, and annual notices to participants.
- Plan participant education — Informing participants 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 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 establish and maintain their retirement plans. Most 401(k) plans are also subject to annual audits. Retirement plan consultants can make sure your Joliet, IL 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 Joliet, IL include:
Joliet, IL Retirement Plan Consultants | Correct Capital
As you consider the future of your business and the well-being of your workforce, providing a retirement plan should be at the forefront. With our complete range of services and commitment to acting exclusively in your best interest, we'll help you get your Joliet, IL company and staff from where you are to where you want to go. To initiate developing a plan that aligns with your individual company and goals, talk to a retirement plan consultant in Joliet, IL today at 877-930-4015 or contact us online.
