Retirement plan consultants in Springfield, MA. Sponsoring a retirement plan such as 401(k) is a wise step for Springfield, MA businesses and business owners looking for a competitive advantage. Retirement 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 established a retirement plan before, or for companies looking for a plan upgrade, the wealth of plan options, regulatory compliance, and tax considerations can be overwhelming.
Correct Capital Wealth Management is an independent Springfield, MA financial advisory firm that specializes in assisting companies set up and manage customized retirement plans, tailored to the needs of both your business and workers. 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 Springfield, MA to help set up a 401(k) or other plan, reach out to us via 877-930-4015, contact us online, or make an appointment with a member of our advisor team today.
Why Establish a Retirement Plan for Your Springfield, MA Business?
To understand what a 401(k) or other retirement plan could do for your Springfield, MA business, it's important to consider what a retirement plan means for your employees:
- Two-thirds of U.S. retirees say there's a retirement crisis in the country; 2 in 5 think they might outlive their retirement savings (Source)
- 45% of retirees say their income wasn't high enough to save for retirement; over half blame their employer for not providing adequate resources 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 key 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 choose to participate (Source)
- 78% of younger workers that are 401(k) plan participants are keen on personalized investment advice for their plan (Source)
- 77% of plan participants are "extremely confident" in their ability to make the right decisions with their money with the help of a financial advisor (Source)
Retirement savings is a huge concern for most Americans, and Springfield, MA companies that sponsor retirement plans afford themselves a significant edge when it comes to attracting and retaining talent. Beyond that, there are a multitude of benefits for both employers and employees that retirement plans offer:
Business Benefits
- Tax deductions for matching 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, help reduce initial costs
- Higher retention rates lower the annual cost of turnover
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
- Enhanced financial wellbeing in retirement
Retirement Plan Options Available for Springfield, MA Businesses
If you're looking into setting up a retirement plan for your Springfield, MA business, there are a variety of plan options that may be right for your business:
- 401(k) Plans — The foundation of American retirement plans, 401(k)s enable for diverse investments including stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a portion of their income before taxes are deducted. Employers have the option to match contributions. Safe Harbor 401(k) plans are largely 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 tailored 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 specific amount or percentage of their income, defined benefit plans promise 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 one form of defined benefit plan that tracks each participant's balance in a hypothetical account, which increases every year through employer contributions and an interest credit rate. This plan offers predictable benefits 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 certainty of pensions and the flexibility of contribution plans.
- Simplified Employee Pension (SEP) IRAs — SEP plans offer an uncomplicated 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 minimal red tape, and contributions are tax-deductible for the business. They're particularly 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 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 must match up to a certain percentage. SIMPLE IRAs are an excellent option 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 allow employers to make optional contributions to their employees' retirement funds. Contributions are usually made out of the company's profits, giving employees a direct stake in the company's success. These plans are adaptable in many ways, offering flexibility in how contributions are calculated and distributed among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs give employees with company stock, providing a stake of ownership 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 high performers who will eventually lead of the business.
How Can Correct Capital Help My Business's Retirement Plan?
Our Springfield, MA retirement plan consultants manage over 30 plans in companies of all sizes, 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 help with evaluating and selecting the most appropriate retirement plan for your business, taking into account factors such as number of employees, financial goals, employee demographics, and tax advantages. The goal is to select a plan that offers 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 the terms of the plan, and creating a record-keeping system. Our Springfield, MA retirement plan consultants can handle and/or assist with all of these requirements.
- Plan changes — Maybe 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 guide you through modifying your plan to adapt to 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 wide array of analytical tools, resources, and experience to aid in the selection of investment options that should be made available within the plan. This includes examining the performance of different investment funds, evaluating your employees' risk tolerance, and providing a diverse range of options to meet 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 plan adoption agreements, summary plan descriptions, and annual notices to participants.
- Plan participant education — Informing participants is key 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 one-on-one 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 establish 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 Springfield, MA business stays compliant. Moreover, hiring Correct Capital as your retirement plan consultant helps remove much of the fiduciary duty related to the plan off your shoulders.
Other services we offer in Springfield, MA include:
Springfield, MA Retirement Plan Consultants | Correct Capital
As you contemplate the future of your business and the welfare of your workforce, providing a retirement plan should be a top priority. With our complete range of services and commitment to working only in your best interest, we'll help you guide your Springfield, MA company and employees from where you are to where you want to go. To begin developing a plan that matches with your unique business and goals, talk to a retirement plan consultant in Springfield, MA today at 877-930-4015 or contact us online.
