Retirement plan consultants in Overland Park, KS. Sponsoring a retirement plan such as 401(k) is a wise step for Overland Park, KS companies and business owners looking for a competitive advantage. These plans are a crucial element 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 who'd like to make changes to their current plan, the variety of plans available, regulatory compliance, and tax considerations can be overwhelming.
Correct Capital Wealth Management is an independent Overland Park, KS financial advisory firm that specializes in assisting companies set up and manage customized retirement plans, built around the needs of both your business and workforce. We love exploring the unique story behind each business we work with and getting to know what makes them tick. As fiduciary advisors, our only goal is to act in your best interest. If you're in search of a retirement plan consultant in Overland Park, KS 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 Overland Park, KS Business
To understand what a 401(k) or other retirement plan could do for your Overland Park, KS 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; four out of ten think they might outlive their retirement savings (Source)
- Nearly half of retirees say their income wasn't sufficient to save for retirement; 55% blame their employer for not doing enough to help them save (Source)
- In a recent study, 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 essential reason to join a company; about four in ten ranked it in their top three most desired benefits (Source)
- More than three-quarters of employees with access to a plan opt-in (Source)
- Nearly eight in ten of Millennial and Gen Z 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 the right financial decisions with the help of a financial advisor (Source)
Retirement savings is a huge concern for most Americans, and Overland Park, KS businesses that offer retirement plans afford themselves a competitive advantage when it comes to attracting and retaining talent. Beyond that, there are a host of benefits for both employers and employees when it comes to offering retirement plans:
Business Benefits
- Matching contributions are tax-deductible
- Tax-free earnings on assets
- Variety of plan options and flexibility to adapt a plan to your business
- Tax credits and other benefits from the SECURE ACT 2.0, assist in reducing start up costs
- Higher employee retention lowers the annual cost of training new employees
Employee Benefits
- Employee contributions can reduce their taxable income
- No taxation on contributions and earnings until withdrawal
- Easy-to-make contributions through payroll deductions
- Even small, regular contributions can accumulate into significant retirement savings
- Participant assets can be rolled over if they change employers
- Improved financial security in retirement
Types of Retirement Plans Available for Overland Park, KS Businesses
If you're thinking about setting up a retirement plan for your Overland Park, KS business, there are a multitude of plan options our retirement plan consultants can speak to you about:
- 401(k) Plans — The cornerstone 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 portion of their earnings 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 when made. 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 tax-exempt organizations.
- 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 paycheck, defined benefit plans offer a guaranteed monthly withdrawal once an employee reaches retirement. These plans are primarily employer-funded, and the company takes on the investment risk.
- Cash Balance Plans — Cash balance plans are a type of defined benefit plan that tracks each participant's balance in a hypothetical account, which increases 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 looking for 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 offer retirement plans. Employers make contributions directly to an IRA set up 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 modified annually.
- Savings Incentive Match Plan for Employees (SIMPLE) IRA — SIMPLE IRAs are tailored to 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 earnings to the plan, which employers must match up to a certain percentage. SIMPLE IRAs are an excellent option 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 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 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, providing a stake of ownership in the business. ESOPs are not only a retirement benefit but also align employees' interests with the company's performance, potentially boosting productivity and job satisfaction. ESOPs can also be part of a company's succession planning as ownership shares can be passed to high performers who will eventually take the reins of the business.
How Can Correct Capital Help My Business's Retirement Plan?
Our Overland Park, KS 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 United States. Our expertise and experience enables 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 fitting retirement plan for your business, bearing in mind 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 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 the terms of the plan, and setting up a record-keeping system. Our Overland Park, KS retirement plan consultants can carry out and/or assist with each of these steps.
- Plan changes — Possibly you're unsatisfied 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 accommodate business growth, changes in workforce, or shifts in financial goals. This includes adding new features, modifying contribution limits, or transitioning to a different type of plan to more closely align with 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 ought to be made available within the plan. This includes analyzing the performance of different investment funds, evaluating your employees' risk tolerance, and providing a diverse range of options to meet the varying investment preferences and retirement goals of your 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 plan adoption agreements, summary plan descriptions, and annual notices to participants.
- Plan participant education — Informing participants is key to ensuring that your employees comprehend the benefits of participating in the retirement plan and how to make educated investment choices. Correct Capital's retirement plan consultants engage in 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 frameworks 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 Overland Park, KS business stays compliant. Additionally, hiring Correct Capital as your retirement plan consultant enables us to assume much of the fiduciary duty related to the plan from your responsibilities.
Other services we offer in Overland Park, KS 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
Overland Park, KS Retirement Plan Consultants | Correct Capital
As you think about the future of your business and the well-being of your workforce, offering a retirement plan should be a top priority. With our wide array of offerings and dedication to acting only in your optimal interest, we'll help you guide your Overland Park, KS business and staff from where you are to where you want to go. To initiate crafting a plan that fits with your distinct company and goals, reach out to a retirement plan consultant in Overland Park, KS today at 877-930-4015 or contact us online.
