Retirement plan consultants in Nashville, TN. Adopting a retirement plan such as 401(k) is a wise step for Nashville, TN companies and business owners looking for a competitive advantage. Retirement 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 that have not 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 challenging.
Correct Capital Wealth Management is an independent Nashville, TN financial consultancy firm that specializes in helping companies establish and maintain customized retirement plans, built around the needs of both your business and workforce. We love exploring the unique story behind every company we work with and getting to know what makes them tick. As fiduciary advisors, our primary objective is to act in your best interest. If you're in search of a retirement plan consultant in Nashville, TN to help create a 401(k) or other plan, reach out to us via 877-930-4015, contact us online, or make an appointment with one of our financial advisors today.
Why Establish a Retirement Plan for Your Nashville, TN Business?
To understand what a 401(k) or other retirement plan could do for your Nashville, TN company, it's crucial to examine how much it means to your employees:
- 67% of U.S. retirees say the country is in a retirement crisis; 40% think they might outlive their retirement savings (Source)
- Nearly half of retirees say their income wasn't high enough to save for retirement; over half blame their employer for not providing adequate resources to help them save (Source)
- In a recent study, 62% of respondents said their largest 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; nearly half said it's an essential reason to join a company; 44% ranked it in their three most desired most desired benefits (Source)
- Nearly four out of five employees with access to a plan opt-in (Source)
- Nearly eight in ten of Millennial and Gen Z 401(k) plan participants are looking for 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)
Saving for retirement is a significant concern for most Americans, and Nashville, TN businesses that offer retirement plans afford themselves a leg up when it comes to securing and keeping valuable employees. Additionally, there are a host of benefits for both employers and employees that retirement plans offer:
Business Benefits
- Tax deductions for employer 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 initial costs
- Higher employee retention lowers the annual cost of turnover
Employee Benefits
- Employee contributions can reduce their taxable income
- No taxation on contributions and earnings until withdrawal
- Contributions are easy to make through payroll deductions
- Small, regular contributions can grow into significant retirement savings
- Assets can be rolled over by participants if they change employers
- Improved financial security in retirement
Retirement Plan Options Available for Nashville, TN Businesses
If you're considering sponsoring a 401(k) or other plan for your Nashville, TN 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 allow for a wide range of investments including stocks, bonds, mutual funds, and ETFs, and permit employees to save and invest a percentage of their paycheck before taxes are taken out. 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 — Comparable to 401(k)s, 403(b)s are tailored 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 earnings, defined benefit plans offer a guaranteed 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 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 defined contribution plan. It's an appealing 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 provide retirement benefits. Employers make contributions directly to an IRA established for each employee. SEPs are easy to administer, with minimal paperwork, 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 simpler to manage 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 a great choice for small businesses seeking to provide a more traditional retirement plan without the complexities of larger plans.
- Profit-Sharing Plans — Profit-sharing plans are versatile retirement solutions that allow employers to make optional contributions to their employees' retirement funds. Contributions are typically made from company stock, giving employees a direct stake in 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, 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, which can boost 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 lead 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 United States. Our expertise and experience allows us to offer a range of services that encompass 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, bearing in mind factors such as company size, financial goals, employee demographics, and tax advantages. The goal is to select a plan that offers 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 creating a formal written agreement, arranging a trust for trust assets, notifying eligible employees about the terms of the plan, and creating a record-keeping system. Our Nashville, TN retirement plan consultants can carry out and/or assist with each of these steps.
- Plan changes — Possibly 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 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 should be made available within the plan. This includes examining the performance of different investment funds, evaluating your employees' risk tolerance, and guaranteeing a diverse range of options to accommodate the different needs of different employees.
- Plan documentation — Retirement plan consultants assist in drafting and maintaining all required 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 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 maximize 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 Nashville, TN business stays compliant. Additionally, 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:
- Financial Planning for Business Owners
- Comprehensive Financial Planning
- Retirement Income Planning
- Investment Planning
- Retirement Financial Planning
- Independent Financial Advisor
- Roth Conversion
- Investment Management
- 401(k) Audit
- High-Net-Worth Wealth Management
Nashville, TN Retirement Plan Consultants | Correct Capital
As you consider the future prospects of your business and the welfare of your employees, implementing a retirement plan should be front and center. With our complete range of services and dedication to acting exclusively in your best interest, we'll help you get your Nashville, TN company and employees from where you are to where you want to go. To begin crafting a plan that aligns with your distinct company and goals, reach out to a retirement plan consultant in Nashville, TN today at 877-930-4015 or contact us online.
