Retirement plan consultants in St. Louis, MO. Setting up a retirement plan like a 401(k) is a strategic step for St. Louis, MO companies and business owners looking for a way to stand out. Retirement plans are a vital component in retaining and attracting top talent, providing employees with a sense of security, and fostering a committed workforce. But, for businesses that have not established a retirement plan before, or for companies looking for a plan upgrade, the wealth of plan options, legal requirements, and tax considerations can be overwhelming.
Correct Capital Wealth Management is an independent St. Louis, MO financial advisory firm that specializes in assisting companies establish 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 the entrepreneurial spirit that guides their leaders. As fiduciary advisors, our primary objective is to act in your best interest. If you're looking for a retirement plan consultant in St. Louis, MO to help create 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.
Why Establish a Retirement Plan for Your St. Louis, MO Business?
To understand what a 401(k) or other retirement plan could do for your St. Louis, MO company, it's essential to consider what a retirement plan means for your employees:
- 2 in 3 U.S. retirees say the country is in a retirement crisis; 2 in 5 think they might 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 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; 47% said it's an important reason to join a company; 44% ranked it in their top three most desired benefits (Source)
- More than three-quarters of employees with access to a plan participate (Source)
- 78% of Millennial and Gen Z 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 sound decisions with their money with the help of a financial advisor (Source)
Retirement savings is a significant concern for most Americans, and St. Louis, MO companies that offer retirement plans give themselves a competitive advantage when it comes to attracting and retaining talent. Additionally, there are a multitude of benefits for both employers and employees when it comes to offering retirement plans:
Business Benefits
- Tax deductions for employer contributions
- Earnings on plan assets are tax-free
- 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, can lower 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
- Contributions are easy to make 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 St. Louis, MO Businesses
If you're looking into setting up a 401(k) or other plan for your St. Louis, MO business, there are a variety of plan options our retirement plan consultants can speak to you about:
- 401(k) Plans — The bedrock of American retirement plans, 401(k)s allow for diverse investments including stocks, bonds, mutual funds, and ETFs, and permit 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 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 — Much like 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 operate based on employees contributing a specific amount or percentage of their income, defined benefit plans promise a specific monthly withdrawal once an employee reaches retirement. These plans are primarily employer-funded, and the company bears 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 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 security of pension plans and the flexibility 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 set up for each employee. SEPs are straightforward to manage, with minimal red tape, and contributions are tax-deductible for the business. They're especially 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 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 a great choice for small businesses looking to offer 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 discretionary contributions to their employees' retirement funds. Contributions are typically made from company stock, 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 provide employees with company stock, offering them a stake of ownership 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 high performers who will eventually lead of the business.
How Can Correct Capital Help My Business's Retirement Plan?
Our St. Louis, MO retirement plan consultants manage over 30 plans in both small and large companies, and represent over $230 million in total plan assets across the United States. Our experience and expertise allows us to offer a range of services that encompass both the initial set up and ongoing support:
- Plan selection — We'll assist in evaluating and selecting the most suitable retirement plan for your unique company, considering factors such as company size, financial goals, employee demographics, and tax considerations. The goal is to decide on a plan that provides the best benefits to your employees while being efficient for your business.
- 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 the terms of the plan, and establishing a record-keeping system. Our St. Louis, MO retirement plan consultants can carry out and/or assist with all of these requirements.
- Plan changes — Perhaps you dislike 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 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 better meet your needs.
- Investment advice — As a Registered Investment Advisor (RIA), we have access to a diverse range of analytical tools, resources, and experience to assist with the selection of investment options that should be made available within the plan. This includes analyzing 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 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 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 establish 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 St. Louis, MO business stays compliant. Additionally, 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 St. Louis, MO include:
- Family Wealth Planning
- 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
St. Louis, MO Retirement Plan Consultants | Correct Capital
As you consider the future prospects of your company and the well-being of your workforce, offering a retirement plan should be front and center. With our comprehensive suite of services and deep commitment to working solely in your optimal interest, we'll help you guide your St. Louis, MO business and employees from where you are to where you want to go. To start crafting a plan that matches with your individual business and objectives, talk to a retirement plan consultant in St. Louis, MO today at 877-930-4015 or contact us online.
