Retirement plan consultants in Santa Rosa, CA. Setting up a retirement plan such as 401(k) is a wise step for Santa Rosa, CA businesses and business owners looking for a competitive advantage. These plans are a key factor in retaining and attracting top talent, providing employees with a sense of security, and fostering a productive workforce. But, for businesses who haven't set up a retirement plan before, or for companies looking for a better option, the variety of plans available, legal requirements, and tax considerations can be challenging.
Correct Capital Wealth Management is an independent Santa Rosa, CA financial consultancy firm that specializes in assisting companies set up 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 the entrepreneurial spirit that guides 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 Santa Rosa, 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 a member of our advisor team today.
Why Establish a Retirement Plan for Your Santa Rosa, CA Business?
To understand what a 401(k) or other retirement plan could mean for your Santa Rosa, 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 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, 62% of respondents said their main 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; 47% said it's an essential reason to join a company; almost half ranked it in their three most desired most desired benefits (Source)
- Nearly four out of five employees with access to a plan choose to participate (Source)
- Nearly eight in ten of younger workers that are 401(k) plan participants are keen on customized 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)
Retirement savings is a significant concern for most Americans, and Santa Rosa, CA companies that sponsor retirement plans provide themselves a leg up 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
- Tax deductions for employer contributions
- 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, can lower initial costs
- Higher retention rates lower 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
- Small, regular contributions can grow into significant retirement savings
- Assets can be rolled over by participants if they change employers
- Enhanced financial wellbeing in retirement
Types of Retirement Plans Available for Santa Rosa, CA Businesses
If you're looking into setting up a 401(k) or other plan for your Santa Rosa, CA 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 across stocks, bonds, mutual funds, and ETFs, and permit employees to save and invest a part of their income before taxes are taken out. Employers have the option 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 — Much like 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 certain amount or percentage of their income, defined benefit plans promise a predetermined monthly withdrawal once an employee reaches retirement. These plans are mostly employer-funded, and the company takes on the investment risk.
- Cash Balance Plans — Cash balance plans are a type of defined benefit plan that accounts for each participant's balance in a hypothetical account, which increases every year through employer contributions and an interest credit 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 security of pension plans 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 established for each employee. SEPs are easy to administer, with no significant paperwork, and contributions are deductible for the business. They're especially 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 tailored to 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 salary 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 hassle of larger plans.
- Profit-Sharing Plans — Profit-sharing plans are flexible retirement solutions that allow employers to make optional contributions to their employees' retirement funds. Contributions are typically made from company stock, giving employees an incentive to contribute to the company's success. These plans are adaptable 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, providing an ownership interest in the business. ESOPs are not only a retirement benefit but also synchronize financial goals of employees with those of the company's performance, potentially boosting 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.
What Can Correct Capital's Santa Rosa, CA Retirement Plan Consultants Do for My Business?
Our Santa Rosa, CA retirement plan consultants currently manage over 30 plans in companies of all sizes, and oversee over $230 million in total plan assets across the country. 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, taking into account factors such as company size, financial goals, employee demographics, and tax considerations. The goal is to decide on a plan that offers the best benefits to your employees while also helping out your bottom line.
- Establishing the plan — Several 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 establishing a record-keeping system. Our Santa Rosa, CA retirement plan consultants can handle and/or assist with each of these steps.
- Plan changes — Maybe 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 help you with modifying your plan to adapt to 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 diverse 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 assessing the performance of different investment funds, assessing your employees' risk tolerance, and providing a diverse range of options to accommodate the different needs of different employees.
- Plan documentation — Retirement plan consultants assist in drafting and maintaining all necessary 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.
- Plan participant education — Education is paramount to ensuring that your employees grasp the benefits of participating in the retirement plan and how to make wise 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 enhance their retirement savings.
- Help with regulations and audits — The IRS, SEC, ERISA, and other laws and institutions set rigid guidelines for how companies need to stay legally compliant with their retirement plans. Most retirement plans are also subject to annual audits. Retirement plan consultants can make sure your Santa Rosa, CA business stays compliant. Moreover, hiring Correct Capital as your retirement plan consultant helps remove much of the fiduciary duty related to the plan from your responsibilities.
Other services we offer in Santa Rosa, CA include:
Santa Rosa, CA Retirement Plan Consultants | Correct Capital
As you contemplate the future of your business and the well-being of your employees, providing a retirement plan should be at the forefront. With our comprehensive suite of offerings and dedication to acting only in your optimal interest, we'll help you lead your Santa Rosa, CA company and employees from where you are to where you want to go. To start developing a plan that matches with your distinct company and objectives, reach out to a retirement plan consultant in Santa Rosa, CA today at 877-930-4015 or contact us online.
