Retirement plan consultants in Tempe, AZ. Setting up a retirement plan such as 401(k) is a wise step for Tempe, AZ companies and business owners looking for a competitive advantage. These plans are a key factor in attracting and retaining top talent, providing employees with a feeling of stability, and fostering a committed workforce. But, for businesses that have not set up a retirement plan before, or for companies in search of a plan upgrade, the wealth of plan options, legal requirements, and tax considerations can be challenging.
Correct Capital Wealth Management is an independent Tempe, AZ financial advisory firm that specializes in helping companies set up and manage unique retirement plans for your unique business and workforce. We enjoy exploring the unique story behind each business we work with and getting to know what makes them tick. As fiduciary advisors, our primary objective is to act in your best interest. If you're looking for a retirement plan consultant in Tempe, AZ 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 a member of our advisor team today.
Benefits of Starting a Retirement Plan for Your Tempe, AZ Business
To understand what a 401(k) or other retirement plan could mean for your Tempe, AZ company, it's important to examine how much it means to 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)
- Nearly half of retirees say their income wasn't sufficient to save for retirement; over half blame their employer for not providing adequate resources to help them save (Source)
- In one survey, nearly two-thirds of respondents said their main source of income in retirement will be their 401(k) (Source)
- 60% of employees cited their employers' retirement plan as a reason they remain; nearly half said it's an essential reason to join a company; about four in ten ranked it in their three most desired most desired benefits (Source)
- 77% of employees with access to a plan participate (Source)
- 78% of younger workers that are 401(k) plan participants are keen on customized investment advice for their plan (Source)
- 77% 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)
Saving for retirement is a significant concern for most Americans, and Tempe, AZ companies that offer retirement plans give themselves a leg up when it comes to securing and keeping valuable employees. Moreover, there are a host of benefits for both employers and employees when it comes to offering retirement plans:
Business Benefits
- Matching contributions are tax-deductible
- Earnings on plan assets are tax-free
- Variety of plan options and flexibility to adapt a plan to your business
- Tax credits , among other advantages from the SECURE ACT 2.0, can lower start up costs
- Higher employee retention lowers the annual cost of training new employees
Employee Benefits
- Employee contributions can reduce their taxable income
- Contributions and earnings are not taxed until withdrawal
- Easy-to-make contributions through payroll deductions
- Small, regular contributions can grow into significant retirement savings
- Participant assets can be rolled over if they change employers
- Enhanced financial wellbeing in retirement
Retirement Plan Options Available for Tempe, AZ Businesses
If you're considering setting up a retirement plan for your Tempe, AZ business, there are a variety of plan options that may be right for your business:
- 401(k) Plans — The cornerstone of American retirement plans, 401(k)s enable for diverse investments including stocks, bonds, mutual funds, and ETFs, and permit employees to save and invest a portion of their paycheck before taxes are taken out. Employers can choose 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 — Similar to 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 operate based on employees contributing a specific amount or percentage of their paycheck, defined benefit plans promise a guaranteed 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 tracks each participant's balance in a hypothetical account, which grows annually through employer contributions and an annual interest 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 seeking a middle ground between the security of pension plans and the adaptability 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 established for each employee. SEPs are straightforward to manage, with no significant paperwork, 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 simpler to manage than 401(k)s but allow employees to contribute a part of their income to the plan, which employers are required to 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 red tape associated with larger plans.
- Profit-Sharing Plans — Profit-sharing plans are flexible retirement solutions that enable employers to make optional contributions to their employees' retirement funds. Contributions are usually made out of the company's profits, giving employees an incentive to contribute to 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 offer employees with company stock, offering them an ownership interest in the business. ESOPs are not only a retirement benefit but also align financial goals of employees with those of the company's performance, potentially boosting productivity and job satisfaction. ESOPs can also align with 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 Tempe, AZ 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 U.S. 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 fitting retirement plan for your unique company, considering factors such as number of employees, financial goals, employee demographics, and tax considerations. The goal is to decide on a plan that offers the best benefits to your employees while being economical for your business.
- Establishing the plan — Multiple steps are required to make the retirement plan legitimate. 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 Tempe, AZ retirement plan consultants can carry out and/or assist with each of these steps.
- Plan changes — Possibly 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 introducing new options, adjusting 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 guaranteeing a diverse range of options to suit the different needs of different 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 plan adoption agreements, plan summaries, 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 informed 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 enhance their retirement savings.
- Help with regulations and audits — The IRS, SEC, ERISA, and other laws and institutions set rigid frameworks for how companies establish and maintain their retirement plans. Most retirement plans are also subject to annual audits. Retirement plan consultants can assist in ensuring your Tempe, AZ 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 Tempe, AZ 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
Tempe, AZ Retirement Plan Consultants | Correct Capital
As you contemplate the future prospects of your company and the well-being of your employees, offering a retirement plan should be front and center. With our wide array of offerings and dedication to acting exclusively in your optimal interest, we'll help you guide your Tempe, AZ company and employees from where you are to where you want to go. To begin developing a plan that matches with your distinct company and goals, reach out to a retirement plan consultant in Tempe, AZ today at 877-930-4015 or contact us online.
