Retirement plan consultants in Nashville, TN. Establishing a retirement plan such as 401(k) is a strategic step for Nashville, TN companies and business owners looking for a way to stand out. Retirement plans are a vital component in retaining and attracting 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 in search of a better option, the wealth of plan options, regulatory compliance, and tax considerations can be overwhelming.
Correct Capital Wealth Management is an independent Nashville, TN financial advisory firm that specializes in assisting companies set up and maintain customized retirement plans, tailored to the needs of both your business and workers. We love exploring the unique story behind each business we work with and getting to know the entrepreneurial spirit that drives their leaders. 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 Nashville, TN to help set up a 401(k) or other plan, reach out to us via 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 Nashville, TN Business
To understand what a 401(k) or other retirement plan could mean for your Nashville, TN business, it's crucial to examine what a retirement plan means for your employees:
- 2 in 3 U.S. retirees say the country is in a retirement crisis; four out of ten worry they will live longer than their savings last (Source)
- Almost half 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, nearly two-thirds of respondents said their largest source of income in retirement will be their 401(k) (Source)
- Six out of ten 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 top three most desired benefits (Source)
- 77% of employees with access to a plan participate (Source)
- 78% of younger workers that are 401(k) plan participants are keen on personalized investment advice for their plan (Source)
- 77% of plan participants are "extremely confident" in their ability to make the right decisions with their money with the help of a financial advisor (Source)
Retirement savings is a major concern for most Americans, and Nashville, TN companies that sponsor retirement plans afford themselves a competitive advantage when it comes to securing and keeping valuable employees. Beyond that, 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 and other benefits from the SECURE ACT 2.0, can lower 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
- Contributions are easy to make through payroll deductions
- Even small, regular contributions can accumulate into significant retirement savings
- Assets can be rolled over by participants if they change employers
- Enhanced financial wellbeing in retirement
Types of Retirement Plans Available for Nashville, TN Businesses
If you're thinking about sponsoring a retirement plan for your Nashville, TN business, there are a range of plan options our retirement plan consultants can discuss with you:
- 401(k) Plans — The foundation of American retirement plans, 401(k)s allow for a wide range of investments including stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a portion of their earnings before taxes are deducted. Employers can choose to match contributions. Safe Harbor 401(k) plans are largely 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 — Much like 401(k)s, 403(b)s are specifically designed 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 specific monthly withdrawal once an employee reaches retirement. These plans are largely employer-funded, and the company takes on 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 annual interest rate. This plan offers predictable benefits 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 simple 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 tax-deductible for the business. They're particularly well-suited for businesses with fluctuating income, 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 paycheck to the plan, which employers are required to 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 red tape associated with larger plans.
- Profit-Sharing Plans — Profit-sharing plans are flexible retirement solutions that enable employers to make discretionary contributions to their employees' retirement funds. Contributions are often made from company stock, 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 give 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 high performers who will eventually take the reins of the business.
What Can Correct Capital's Nashville, TN Retirement Plan Consultants Do for My Business?
Our Nashville, TN retirement plan consultants are currently managing over 30 plans in companies of all sizes, 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 encompass 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 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 legal. These include adopting a written plan, arranging a trust for trust assets, notifying eligible employees about the terms of the plan, and establishing a record-keeping system. Our Nashville, TN retirement plan consultants can carry out 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 evolve with you. Consultants can guide you through 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 suit your needs.
- Investment advice — As a Registered Investment Advisor (RIA), we have access to a wide 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 assessing the performance of different investment funds, assessing your employees' risk tolerance, and guaranteeing a diverse range of options to meet 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 adoption agreements for the plan, summary plan descriptions, and annual notices to participants.
- Plan participant education — Education is paramount to ensuring that your employees comprehend the benefits of participating in the retirement plan and how to make wise investment choices. Correct Capital's retirement plan consultants engage in quarterly webinars to plan participants and offer one-on-one coaching for topics such as retirement planning, investment risk, and how to maximize 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 401(k) plans are also subject to annual audits. Retirement plan consultants can make sure your Nashville, TN business stays compliant. Furthermore, 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 Nashville, TN include:
Nashville, TN Retirement Plan Consultants | Correct Capital
As you consider the future prospects of your company and the well-being of your workforce, providing a retirement plan should be at the forefront. With our comprehensive suite of services and dedication to working solely in your optimal interest, we'll help you get your Nashville, TN business and staff from where you are to where you want to go. To start creating a plan that matches with your distinct company and goals, speak to a retirement plan consultant in Nashville, TN today at 877-930-4015 or contact us online.
