Retirement plan consultants in Santa Clarita, CA. Creating a retirement plan such as 401(k) is a smart step for Santa Clarita, CA companies and business owners looking for a way to stand out. Retirement plans are a vital component in attracting and retaining top talent, providing employees with a feeling of stability, and fostering a loyal 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 wealth of plan options, legal requirements, and tax considerations can be daunting.
Correct Capital Wealth Management is an independent Santa Clarita, CA financial consultancy firm that specializes in assisting companies establish and maintain unique retirement plans for your unique business and workforce. We enjoy 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 Santa Clarita, CA 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 a member of our advisor team today.
Why Establish a Retirement Plan for Your Santa Clarita, CA Business?
To understand what a 401(k) or other retirement plan could mean for your Santa Clarita, CA business, it's essential to examine how much it means to your employees:
- 2 in 3 U.S. retirees say there's a retirement crisis in the country; four out of ten worry they will outlive their retirement savings (Source)
- 45% 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 one survey, over half of respondents said their primary 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 important reason to join a company; about four in ten ranked it in their top three most desired benefits (Source)
- 77% of employees with access to a plan opt-in (Source)
- Nearly eight in ten of Gen Z and Millennial 401(k) plan participants are keen on personalized investment advice for their plan (Source)
- Three-quarters of plan participants are "extremely confident" in their ability to make the right decisions with their finances with the help of a financial advisor (Source)
Saving for retirement is a huge concern for most Americans, and Santa Clarita, CA businesses that offer retirement plans afford themselves a competitive advantage when it comes to attracting and retaining talent. Additionally, there are a bevy 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
- Variety of plan options and 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
- Employees can lower 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
- Improved financial security in retirement
Retirement Plan Options Available for Santa Clarita, CA Businesses
If you're considering adopting a 401(k) or other plan for your Santa Clarita, CA business, there are a variety of plan options our retirement plan consultants are ready to discuss:
- 401(k) Plans — The foundation of American retirement plans, 401(k)s allow for a wide range of investments across stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a portion of their earnings before taxes are taken out. Employers have the option to match contributions. Safe Harbor 401(k) plans are essentially 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 — Comparable 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 income, defined benefit plans offer a specific monthly withdrawal in retirement. These plans are primarily 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 increases annually through employer contributions and an annual interest rate. This plan offers predictable benefits 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 adaptability of contribution plans.
- Simplified Employee Pension (SEP) IRAs — SEP plans offer a straightforward way for small businesses to provide retirement benefits. 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 an excellent option for small businesses looking to offer a more traditional retirement plan without the complexities of larger plans.
- Profit-Sharing Plans — Profit-sharing plans are versatile retirement solutions that enable employers to make discretionary 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 success. These plans can be structured in many ways, offering flexibility in how contributions are calculated and distributed among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs provide employees with company stock, providing 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 be part of a company's succession planning as ownership shares can be passed to top employees who will eventually take the reins of the business.
How Can Correct Capital Help My Business's Retirement Plan?
Our Santa Clarita, CA retirement plan consultants are currently managing over 30 plans in both small and large companies, and oversee over $230 million in total plan assets across the U.S. Our expertise and experience enables us to offer a range of services that include both the initial set up and ongoing support:
- Plan selection — We'll assist in evaluating and selecting the most appropriate retirement plan for your business, taking into account factors such as company size, financial goals, employee demographics, and tax advantages. The goal is to decide on 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 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 Santa Clarita, CA retirement plan consultants can carry out and/or assist with all of these requirements.
- 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 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 diverse 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 examining the performance of different investment funds, assessing their risk levels, and providing a diverse range of options to accommodate 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 adoption agreements for the plan, plan summaries, and annual notices to participants.
- Ongoing participant education — Education is vital to ensuring that your employees understand the benefits of participating in the retirement plan and how to make wise investment choices. Correct Capital's retirement plan consultants offer 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 need to stay legally compliant with their retirement plans. Most 401(k) plans are also subject to annual audits. Retirement plan consultants can make sure your Santa Clarita, CA business stays compliant. Furthermore, 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 Santa Clarita, CA 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
Santa Clarita, CA Retirement Plan Consultants | Correct Capital
As you think about the future of your company and the well-being of your employees, implementing a retirement plan should be front and center. With our wide array of offerings and dedication to working exclusively in your optimal interest, we'll help you lead your Santa Clarita, CA company and employees from where you are to where you want to go. To initiate creating a plan that fits with your individual company and objectives, reach out to a retirement plan consultant in Santa Clarita, CA today at 877-930-4015 or contact us online.
