Retirement plan consultants in Mesquite, TX. Establishing a retirement plan such as 401(k) is a wise move for Mesquite, TX businesses and business owners looking for a competitive advantage. These plans are a vital component in retaining and attracting 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 in search of a better option, the variety of plans available, regulatory compliance, and tax considerations can be challenging.
Correct Capital Wealth Management is an independent Mesquite, TX financial advisory firm that specializes in assisting companies set up and maintain customized retirement plans, built around 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, our primary objective is to act in your best interest. If you're in search of a retirement plan consultant in Mesquite, TX 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.
Benefits of Starting a Retirement Plan for Your Mesquite, TX Business
To understand what a 401(k) or other retirement plan could do for your Mesquite, TX company, it's important to look at how much it means to your employees:
- 2 in 3 U.S. retirees say there's a retirement crisis in the country; four out of ten worry they will outlive their retirement savings (Source)
- Almost half of retirees say their income wasn't sufficient to save for retirement; over half blame their employer for not doing enough to help them save (Source)
- In a recent study, nearly two-thirds of respondents said their main 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 important reason to join a company; almost half ranked it in their three most desired most desired benefits (Source)
- 77% of employees with access to a plan participate (Source)
- Nearly eight in ten 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 sound financial decisions with the help of a financial advisor (Source)
Saving for our golden years is a huge concern for most Americans, and Mesquite, TX businesses that offer retirement plans provide themselves a significant edge when it comes to attracting and retaining talent. Moreover, there are a multitude of benefits for both employers and employees when it comes to offering retirement plans:
Business Benefits
- Tax deductions for matching contributions
- 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 retention rates lower the annual cost of training new employees
Employee Benefits
- Employees can lower their taxable income
- Contributions and earnings are not taxed until withdrawal
- Contributions are easy to make 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 Mesquite, TX Businesses
If you're looking into adopting a retirement plan for your Mesquite, TX 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 enable for diverse investments across stocks, bonds, mutual funds, and ETFs, and permit employees to save and invest a percentage of their income before taxes are deducted. 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 — Comparable to 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 specific amount or percentage of their earnings, defined benefit plans promise a guaranteed monthly withdrawal in retirement. These plans are mostly 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 every year through employer contributions and an annual interest rate. This plan offers consistent returns like a traditional pension but with individual accounts similar to a 401(k). It's an appealing 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 a straightforward way for small businesses to provide retirement benefits. Employers make contributions directly to an IRA set up for each employee. SEPs are easy to administer, with no significant paperwork, and contributions are deductible for the business. They're especially well-suited for businesses with fluctuating income, as the contribution amounts can be adjusted 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 earnings to the plan, which employers must 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 typically made out of the company's profits, giving employees an incentive to contribute to the company's bottom line. These plans are adaptable in many ways, offering flexibility in how contributions are calculated and distributed among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs provide employees with company stock, offering them an ownership interest in the business. ESOPs are not only a retirement benefit but also align employees' interests with the company's performance, which can boost productivity and job satisfaction. ESOPs can also complement a company's succession planning as ownership shares can be passed to high performers who will eventually lead of the business.
What Can Correct Capital's Mesquite, TX Retirement Plan Consultants Do for My Business?
Our Mesquite, TX retirement plan consultants are currently managing over 30 plans in companies of all sizes, and oversee 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 assist in evaluating and selecting the most suitable retirement plan for your business, bearing in mind 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 economical for your business.
- Establishing the plan — A number of steps are required to formally put the retirement plan in place. These include creating a formal written agreement, arranging a trust for trust assets, notifying eligible employees about terms and conditions, and setting up a record-keeping system. Our Mesquite, TX retirement plan consultants can carry out and/or assist with each of these steps.
- 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 evolve with you. Consultants can help you with 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 better meet your needs.
- Investment advice — As a Registered Investment Advisor (RIA), we possess a diverse range of analytical tools, resources, and experience to assist with the selection of investment options that should be made available within the plan. This includes assessing 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 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.
- Ongoing participant education — Education is paramount to ensuring that your employees understand the benefits of participating in the retirement plan and how to make educated 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 401(k) plans are also subject to annual audits. Retirement plan consultants can make sure your Mesquite, TX business stays compliant. Moreover, hiring Correct Capital as your retirement plan consultant allows us to take much of the fiduciary duty related to the plan from your responsibilities.
Other services we offer in Mesquite, TX include:
Mesquite, TX 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 front and center. With our wide array of services and deep commitment to acting solely in your best interest, we'll help you get your Mesquite, TX business and staff from where you are to where you want to go. To initiate crafting a plan that fits with your unique business and objectives, reach out to a retirement plan consultant in Mesquite, TX today at 877-930-4015 or contact us online.
