Retirement plan consultants in Sunnyvale, CA. Creating a retirement plan such as 401(k) is a strategic step for Sunnyvale, CA businesses and business owners looking for a way to stand out. Retirement plans are a key factor 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 wealth of plan options, legal requirements, and tax considerations can be daunting.
Correct Capital Wealth Management is an independent Sunnyvale, CA financial consultancy firm that specializes in helping companies set up and manage customized retirement plans, tailored to the needs of both your 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 sole aim is to act in your best interest. If you're looking for a retirement plan consultant in Sunnyvale, 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 one of our financial advisors today.
Why Establish a Retirement Plan for Your Sunnyvale, CA Business?
To understand what a 401(k) or other retirement plan could do for your Sunnyvale, CA business, 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; four out of ten worry they will live longer than their savings last (Source)
- Almost half of retirees say their income wasn't high enough to save for retirement; 55% blame their employer for not providing adequate resources to help them save (Source)
- In one survey, over half of respondents said their largest source of income in retirement will be their 401(k) (Source)
- 60% of employees cited their employers' retirement plan as a reason they remain; 47% said it's an essential 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 participate (Source)
- Nearly eight in ten of Gen Z and Millennial 401(k) plan participants are looking for customized investment advice for their plan (Source)
- 77% of plan participants are "extremely confident" in their ability to make sound decisions with their finances with the help of a financial advisor (Source)
Retirement savings is a significant concern for most Americans, and Sunnyvale, CA businesses that offer retirement plans provide themselves a leg up when it comes to securing and keeping valuable employees. Additionally, there are a host of benefits for both employers and employees that retirement plans offer:
Business Benefits
- Matching contributions are tax-deductible
- 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, help reduce start up costs
- Higher employee retention lowers 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
- Small, regular contributions can grow into significant retirement savings
- Participant assets can be rolled over if they change employers
- Improved financial security in retirement
Retirement Plan Options Available for Sunnyvale, CA Businesses
If you're considering sponsoring a retirement plan for your Sunnyvale, CA business, there are a multitude of plan options that may be right for your business:
- 401(k) Plans — The bedrock of American retirement plans, 401(k)s enable for diverse investments across stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a part of their paycheck before taxes are taken out. 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 — Similar to 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 certain amount or percentage of their paycheck, defined benefit plans promise a guaranteed monthly withdrawal in retirement. These plans are primarily employer-funded, and the company assumes 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 grows annually through employer contributions and an interest credit rate. This plan offers consistent returns like a traditional pension but with personalized accounts similar to a 401(k). It's an appealing 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 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 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 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 part of their paycheck 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 complexities 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 usually made from company stock, giving employees an incentive to contribute to the company's bottom line. These plans are adaptable in many ways, offering flexibility in how contributions are distributed and calculated among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs give employees with company stock, offering them a stake of ownership 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 complement 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 Sunnyvale, 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 United States. Our expertise and experience allows us to offer a range of services that include both the initial set up and ongoing support:
- Plan selection — We'll assist in evaluating different plan options and selecting the most fitting retirement plan for your business, considering factors such as number of employees, financial goals, employee demographics, and tax considerations. The goal is to choose a plan that offers the best benefits to your employees while being efficient for your business.
- Establishing the plan — A number of steps are required to formally put the retirement plan in place. 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 Sunnyvale, CA 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 evolve with you. 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, 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 possess a wide 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 analyzing the performance of different investment funds, assessing your employees' risk tolerance, and ensuring a diverse range of options to meet the varying investment preferences and retirement goals of your 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 — Informing participants is paramount to ensuring that your employees understand the benefits of participating in the retirement plan and how to make informed investment choices. Correct Capital's retirement plan consultants conduct 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 guidelines 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 Sunnyvale, CA business stays compliant. Moreover, hiring Correct Capital as your retirement plan consultant allows us to take much of the fiduciary duty related to the plan off your shoulders.
Other services we offer in Sunnyvale, CA include:
Sunnyvale, CA Retirement Plan Consultants | Correct Capital
As you contemplate the future prospects of your company and the well-being of your workforce, providing a retirement plan should be at the forefront. With our wide array of offerings and deep commitment to acting exclusively in your best interest, we'll help you lead your Sunnyvale, CA company and staff from where you are to where you want to go. To begin developing a plan that matches with your unique company and objectives, speak to a retirement plan consultant in Sunnyvale, CA today at 877-930-4015 or contact us online.
