Retirement plan consultants in Rancho Cucamonga, CA. Sponsoring a retirement plan like a 401(k) is a strategic move for Rancho Cucamonga, CA businesses and business owners looking for a competitive advantage. These plans are a key factor in attracting and retaining top talent, providing employees with a feeling of stability, and fostering a productive workforce. But, for businesses who haven't 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 daunting.
Correct Capital Wealth Management is an independent Rancho Cucamonga, CA financial consultancy firm that specializes in assisting companies establish and maintain 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 drives their leaders. As fiduciary advisors, our sole aim is to act in your best interest. If you're looking for a retirement plan consultant in Rancho Cucamonga, CA to help set up a 401(k) or other plan, give us a call at 877-930-4015, contact us online, or make an appointment with one of our financial advisors today.
Benefits of Starting a Retirement Plan for Your Rancho Cucamonga, CA Business
To understand what a 401(k) or other retirement plan could mean for your Rancho Cucamonga, CA company, it's important to consider what a retirement plan means for your employees:
- 2 in 3 U.S. retirees say the country is in a retirement crisis; 40% worry they will live longer than their savings last (Source)
- 45% 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, 62% of respondents said their primary 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; 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 participate (Source)
- Nearly eight in ten 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 sound financial decisions with the help of a financial advisor (Source)
Retirement savings is a huge concern for most Americans, and Rancho Cucamonga, CA businesses that sponsor retirement plans give themselves a leg up when it comes to attracting and retaining talent. Additionally, there are a bevy 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
- 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, help reduce initial costs
- Higher retention rates lower the annual cost of training new employees
Employee Benefits
- Employees can lower their taxable income
- Contributions and earnings are not taxed 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
- Improved financial security in retirement
Types of Retirement Plans Available for Rancho Cucamonga, CA Businesses
If you're looking into setting up a retirement plan for your Rancho Cucamonga, CA business, there are a multitude of plan options our retirement plan consultants are ready to discuss:
- 401(k) Plans — The bedrock of American retirement plans, 401(k)s allow for diverse investments across stocks, bonds, mutual funds, and ETFs, and permit employees to save and invest a part of their income 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 immediately. 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 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 promise a specific monthly withdrawal in 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 tracks 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 individual accounts similar to a defined contribution plan. 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 simple way for small businesses to provide retirement benefits. Employers make contributions directly to an IRA set up for each employee. SEPs are straightforward to manage, with minimal paperwork, and contributions are deductible for the business. They're especially 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 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 a great choice for small businesses seeking to provide 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 usually made out of the company's profits, 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 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 complement a company's succession planning as ownership shares can be passed to top employees who will eventually lead of the business.
How Can Correct Capital Help My Business's Retirement Plan?
Our Rancho Cucamonga, CA retirement plan consultants currently manage over 30 plans in both small and large companies, and oversee 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 help with evaluating and selecting the most fitting retirement plan for your unique company, bearing in mind factors such as number of employees, financial goals, employee demographics, and tax advantages. 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 — Multiple steps are required to formally put the retirement plan in place. These include adopting a written plan, arranging a trust for trust assets, notifying eligible employees about terms and conditions, and creating a record-keeping system. Our Rancho Cucamonga, CA retirement plan consultants can carry out and/or assist with all of these requirements.
- Plan changes — Possibly you're unhappy with 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 help you with modifying your plan to adapt to business growth, changes in workforce, or shifts in financial goals. This includes introducing new options, 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 have access to a wide range of analytical tools, resources, and experience to help with the selection of investment options that ought to be made available within the plan. This includes examining the performance of different investment funds, evaluating their risk levels, and providing a diverse range of options to accommodate the different needs of different employees.
- Plan documentation — Retirement plan consultants help in drafting and maintaining all required plan documentation, ensuring compliance with IRS and Department of Labor regulations. This includes plan adoption agreements, plan summaries, and annual notices to participants.
- Ongoing participant education — Informing participants 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 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 make sure your Rancho Cucamonga, CA business stays compliant. Moreover, 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 Rancho Cucamonga, CA include:
Rancho Cucamonga, CA Retirement Plan Consultants | Correct Capital
As you think about the future prospects of your company and the well-being of your workforce, offering a retirement plan should be at the forefront. With our complete range of services and deep commitment to acting exclusively in your best interest, we'll help you guide your Rancho Cucamonga, CA company and employees from where you are to where you want to go. To start creating a plan that aligns with your distinct business and objectives, speak to a retirement plan consultant in Rancho Cucamonga, CA today at 877-930-4015 or contact us online.
