Retirement plan consultants in Naperville, IL. Creating a retirement plan such as 401(k) is a strategic step for Naperville, IL businesses and business owners looking for a way to stand out. These plans are a vital component in attracting and retaining top talent, providing employees with a feeling of stability, and fostering a productive workforce. But, for businesses who haven't set up a retirement plan before, or for companies looking for a better option, the wealth of plan options, legal requirements, and tax considerations can be daunting.
Correct Capital Wealth Management is an independent Naperville, 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 drives their leaders. As fiduciary advisors, our only goal is to act in your best interest. If you're looking for a retirement plan consultant in Naperville, IL to help set up a 401(k) or other plan, reach out to us via 877-930-4015, contact us online, or make an appointment with a member of our advisor team today.
Why Establish a Retirement Plan for Your Naperville, IL Business?
To understand what a 401(k) or other retirement plan could do for your Naperville, IL business, it's important to consider how much it means to your employees:
- 67% of U.S. retirees say the country is in a retirement crisis; 2 in 5 worry they will outlive their retirement savings (Source)
- Almost half of retirees say their income wasn't sufficient to save for retirement; 55% blame their employer for not providing adequate resources to help them save (Source)
- In one survey, 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; nearly half said it's an important reason to join a company; about four in ten 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 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 Naperville, IL companies that sponsor retirement plans afford themselves a leg up when it comes to attracting and retaining talent. Additionally, there are a host of benefits for both employers and employees when it comes to offering retirement plans:
Business Benefits
- Tax deductions for employer contributions
- Tax-free earnings on assets
- Variety of plan options and flexibility to adapt a plan to your business
- Tax credits , among other advantages from the SECURE ACT 2.0, help reduce initial costs
- Higher retention rates lower the annual cost of turnover
Employee Benefits
- Employee contributions can reduce their taxable income
- No taxation on contributions and earnings 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 Naperville, IL Businesses
If you're thinking about sponsoring a retirement plan for your Naperville, IL business, there are a multitude of plan options that may be right for your business:
- 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 portion of their income before taxes are deducted. Employers have the option to match contributions. Safe Harbor 401(k) plans are largely 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 — Similar 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 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 bears the investment risk.
- Cash Balance Plans — Cash balance plans are one form of defined benefit plan that accounts for each participant's balance in a hypothetical account, which grows every year through employer contributions and an interest credit rate. This plan offers consistent returns like a traditional pension but with individual accounts similar to a 401(k). It's an attractive option for businesses seeking a middle ground between the security of pension plans and the flexibility 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 established for each employee. SEPs are straightforward to manage, with minimal red tape, and contributions are tax-deductible for the business. They're particularly 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 easier to set up and maintain than 401(k)s but allow employees to contribute a percentage of their paycheck to the plan, which employers must match up to a certain percentage. SIMPLE IRAs are a great choice for small businesses looking to offer a more traditional retirement plan without the complexities 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 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 offer employees with company stock, providing an ownership interest in the business. ESOPs are not only a retirement benefit but also synchronize employees' interests with the company's performance, which can boost productivity and job satisfaction. ESOPs can also be part of 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 Naperville, IL Retirement Plan Consultants Do for My Business?
Our Naperville, IL 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 assist in evaluating different plan options and selecting the most fitting retirement plan for your business, considering factors such as number of employees, financial goals, employee demographics, and tax advantages. The goal is to decide on 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 formally put the retirement plan in place. These include creating a formal written agreement, arranging a trust for trust assets, notifying eligible employees about the terms of the plan, and establishing a record-keeping system. Our Naperville, IL retirement plan consultants can manage 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 assist you in modifying your plan to adapt to business growth, changes in workforce, or shifts in financial goals. This includes adding new features, adjusting contribution limits, or transitioning to a different type of plan to suit 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 should be made available within the plan. This includes analyzing the performance of different investment funds, determining your employees' risk tolerance, 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 necessary 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 — Education is key to ensuring that your employees comprehend the benefits of participating in the retirement plan and how to make informed investment choices. Correct Capital's retirement plan consultants carry out quarterly webinars to plan participants and offer personalized coaching for topics such as retirement planning, investment risk, and how to increase their retirement savings.
- Help with regulations and audits — The IRS, SEC, ERISA, and other laws and institutions establish rigid guidelines 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 Naperville, IL business stays compliant. Furthermore, 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 Naperville, IL include:
Naperville, IL Retirement Plan Consultants | Correct Capital
As you think about the future prospects of your business and the welfare of your workforce, offering a retirement plan should be front and center. With our wide array of services and deep commitment to acting exclusively in your best interest, we'll help you lead your Naperville, IL business and employees from where you are to where you want to go. To begin crafting a plan that matches with your distinct business and goals, reach out to a retirement plan consultant in Naperville, IL today at 877-930-4015 or contact us online.
