Retirement plan consultants in Oceanside, CA. Sponsoring a retirement plan like a 401(k) is a smart move for Oceanside, CA companies 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 committed workforce. But, for businesses who haven't set up a retirement plan before, or for companies who'd like to make changes to their current plan, the wealth of plan options, legal requirements, and tax considerations can be overwhelming.
Correct Capital Wealth Management is an independent Oceanside, CA financial consultancy firm that specializes in helping companies establish and manage unique retirement plans for your unique business and workforce. We love exploring the unique story behind every company we work with and getting to know the entrepreneurial spirit that motivates their leaders. As fiduciary advisors, our sole aim is to act in your best interest. If you're in search of a retirement plan consultant in Oceanside, CA to help create 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 Oceanside, CA Business
To understand what a 401(k) or other retirement plan could mean for your Oceanside, CA business, it's important to look at what a retirement plan means for your employees:
- 67% of U.S. retirees say the country is in a retirement crisis; 2 in 5 worry they will live longer than their savings last (Source)
- 45% of retirees say their income wasn't high enough to save for retirement; 55% blame their employer for not doing enough to help them save (Source)
- In a recent study, 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 important reason to join a company; about four in ten ranked it in their three most desired most desired benefits (Source)
- More than three-quarters of employees with access to a plan participate (Source)
- 78% of younger workers that are 401(k) plan participants are interested in customized investment advice for their plan (Source)
- 77% of plan participants are "extremely confident" in their ability to make sound financial decisions with the help of a financial advisor (Source)
Saving for retirement is a major concern for most Americans, and Oceanside, CA companies that offer retirement plans afford themselves a significant edge when it comes to securing and keeping valuable employees. Moreover, 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
- Earnings on plan assets are tax-free
- Variety of plan options and flexibility to adapt a plan to your business
- Tax credits , among other advantages from the SECURE ACT 2.0, can lower initial 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
- Assets can be rolled over by participants if they change employers
- Improved financial security in retirement
Types of Retirement Plans Available for Oceanside, CA Businesses
If you're looking into adopting a retirement plan for your Oceanside, CA business, there are a range of plan options that may be right for your business:
- 401(k) Plans — The cornerstone of American retirement plans, 401(k)s enable for a wide range of investments across stocks, bonds, mutual funds, and ETFs, and permit employees to save and invest a portion of their income before taxes are deducted. Employers can choose to match contributions. Safe Harbor 401(k) plans are largely 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 — Similar to 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 are based on employees contributing a specific amount or percentage of their earnings, defined benefit plans promise a predetermined 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 increases 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 defined contribution plan. It's an appealing option for businesses looking for a middle ground between the certainty of pensions and the flexibility of contribution plans.
- Simplified Employee Pension (SEP) IRAs — SEP plans offer a simple 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 fluctuating income, as the contribution amounts can be adjusted 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 income to the plan, which employers are required to 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 hassle 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 usually 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 provide employees with company stock, offering them a stake of ownership 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 Oceanside, CA Retirement Plan Consultants Do for My Business?
Our Oceanside, CA retirement plan consultants manage over 30 plans in both small and large companies, and oversee over $230 million in total plan assets across the country. 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 aid in evaluating different plan options and selecting the most fitting retirement plan for your business, bearing in mind factors such as number of employees, financial goals, employee demographics, and tax considerations. The goal is to choose a plan that provides the best benefits to your employees while being cost-effective for your business.
- Establishing the plan — Several steps are required to make the retirement plan legitimate. These include creating a formal written agreement, arranging a trust for trust assets, notifying eligible employees about terms and conditions, and creating a record-keeping system. Our Oceanside, CA retirement plan consultants can handle 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 adapt as you grow. Consultants can help you with modifying your plan to accommodate 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 have access to a wide array of analytical tools, resources, and experience to help 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 ensuring 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.
- Plan participant education — Education is vital 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 one-on-one 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 establish and maintain their retirement plans. Most retirement plans are also subject to annual audits. Retirement plan consultants can assist in ensuring your Oceanside, CA 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 off your shoulders.
Other services we offer in Oceanside, CA include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Fiduciary Financial Advisor
Oceanside, CA Retirement Plan Consultants | Correct Capital
As you consider the future of your business and the welfare of your employees, implementing a retirement plan should be a top priority. With our complete range of services and commitment to working exclusively in your best interest, we'll help you lead your Oceanside, CA company and staff from where you are to where you want to go. To begin developing a plan that aligns with your individual company and objectives, talk to a retirement plan consultant in Oceanside, CA today at 877-930-4015 or contact us online.
