Retirement plan consultants in Stockton, CA. Setting up a retirement plan like a 401(k) is a strategic move for Stockton, CA companies and business owners looking for a competitive advantage. Retirement plans are a vital component in attracting and retaining top talent, providing employees with a feeling of stability, and fostering a productive workforce. But, for businesses that have not set up 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 challenging.
Correct Capital Wealth Management is an independent Stockton, CA financial consultancy firm that specializes in helping companies set up and manage customized retirement plans, built around the needs of both your business and workers. We enjoy exploring the unique story behind each business we work with and getting to know what makes them tick. As fiduciary advisors, we have a legal and ethical obligation to act only in your best interest. If you're in search of a retirement plan consultant in Stockton, 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 a member of our advisor team today.
Benefits of Starting a Retirement Plan for Your Stockton, CA Business
To understand what a 401(k) or other retirement plan could do for your Stockton, CA company, it's crucial to examine what a retirement plan means for your employees:
- 67% of U.S. retirees say there's a retirement crisis in the country; four out of ten worry they will live longer than their savings last (Source)
- Almost half of retirees say their income wasn't sufficient to save for retirement; over half blame their employer for not doing enough to help them save (Source)
- In a recent study, over half of respondents said their largest 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 key 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 choose to participate (Source)
- Nearly eight in ten of Millennial and Gen Z 401(k) plan participants are looking for personalized investment advice for their plan (Source)
- 77% 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 major concern for most Americans, and Stockton, CA businesses that offer retirement plans provide themselves a significant edge when it comes to securing and keeping valuable employees. Beyond that, there are a host of benefits for both employers and employees that retirement plans offer:
Business Benefits
- Employer contributions are tax-deductible
- 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, help reduce initial costs
- Higher retention rates lower the annual cost of turnover
Employee Benefits
- Employee contributions can reduce their taxable income
- Contributions and earnings are not taxed until withdrawal
- Contributions are easy to make through payroll deductions
- Small, regular contributions can grow into significant retirement savings
- Assets can be rolled over by participants if they change employers
- Improved financial security in retirement
Types of Retirement Plans Available for Stockton, CA Businesses
If you're looking into sponsoring a retirement plan for your Stockton, 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 a wide range of investments including stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a percentage of their earnings 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 — Similar to 401(k)s, 403(b)s are tailored for employees of non-profit entities.
- Defined Benefit (Pension) Plans — While 401(k)s and other defined contribution plans operate based on employees contributing a certain amount or percentage of their income, defined benefit plans offer a predetermined monthly withdrawal in retirement. These plans are mostly employer-funded, and the company bears the investment risk.
- Cash Balance Plans — Cash balance plans are one form of defined benefit plan that accounts for 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 401(k). It's an attractive option for businesses looking for 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 sponsor retirement plans. Employers make contributions directly to an IRA set up for each employee. SEPs are easy to administer, with minimal paperwork, and contributions are tax-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 simpler to manage 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 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 optional contributions to their employees' retirement funds. Contributions are usually made from company stock, giving employees an incentive to contribute to the company's bottom line. 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 give 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, potentially boosting 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 take the reins of the business.
What Can Correct Capital's Stockton, CA Retirement Plan Consultants Do for My Business?
Our Stockton, CA retirement plan consultants are currently managing 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 aid in evaluating different plan options and selecting the most suitable retirement plan for your specific company, bearing in mind factors such as number of employees, financial goals, employee demographics, and tax advantages. The goal is to select a plan that provides 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 setting up a record-keeping system. Our Stockton, CA retirement plan consultants can manage and/or assist with all of these requirements.
- Plan changes — Perhaps 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 assist you in modifying your plan to accommodate 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 wide array of analytical tools, resources, and experience to help with the selection of investment options that should 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 meet the varying investment preferences and retirement goals of your employees.
- Plan documentation — Retirement plan consultants help in drafting and maintaining all necessary plan documentation, ensuring compliance with IRS and Department of Labor regulations. This includes adoption agreements for the plan, summary plan descriptions, and annual notices to participants.
- Ongoing participant education — Informing participants is key 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 offer quarterly webinars to plan participants and offer one-on-one coaching for topics such as retirement planning, investment risk, and how to increase 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 Stockton, 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 Stockton, CA 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
Stockton, CA Retirement Plan Consultants | Correct Capital
As you contemplate the future prospects of your company and the well-being of your workforce, implementing a retirement plan should be at the forefront. With our complete range of services and dedication to acting exclusively in your optimal interest, we'll help you get your Stockton, CA business and staff from where you are to where you want to go. To start crafting a plan that fits with your individual company and goals, talk to a retirement plan consultant in Stockton, CA today at 877-930-4015 or contact us online.
