Retirement plan consultants in Yonkers, NY. Adopting a retirement plan like a 401(k) is a wise step for Yonkers, NY businesses 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 loyal workforce. But, for businesses who haven't set up a retirement plan before, or for companies who'd like to make changes to their current plan, the wealth of plan options, regulatory compliance, and tax considerations can be overwhelming.
Correct Capital Wealth Management is an independent Yonkers, NY financial advisory firm that specializes in assisting companies establish and maintain customized retirement plans, tailored to the needs of both your business and workforce. We love exploring the unique story behind every company we work with and getting to know the entrepreneurial spirit that guides their leaders. As fiduciary advisors, our sole aim is to act in your best interest. If you're looking for a retirement plan consultant in Yonkers, NY 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 Yonkers, NY Business?
To understand what a 401(k) or other retirement plan could mean for your Yonkers, NY company, it's crucial to consider how much it means to your employees:
- 2 in 3 U.S. retirees say there's a retirement crisis in the country; 40% think they might 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 providing adequate resources to help them save (Source)
- In a recent study, 62% 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; about four in ten ranked it in their three top most desired benefits (Source)
- Nearly four out of five employees with access to a plan participate (Source)
- Nearly eight in ten of younger workers that are 401(k) plan participants are interested in customized investment advice for their plan (Source)
- 77% of plan participants are "extremely confident" in their ability to make sound financial decisions with the help of a financial advisor (Source)
Retirement savings is a major concern for most Americans, and Yonkers, NY companies that sponsor retirement plans afford themselves a significant edge when it comes to securing and keeping valuable employees. Additionally, there are a bevy 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 , among other advantages from the SECURE ACT 2.0, help reduce start up costs
- Higher employee retention lowers the annual cost of turnover
Employee Benefits
- Employees can lower their taxable income
- No taxation on contributions and earnings 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
- Enhanced financial wellbeing in retirement
Types of Retirement Plans Available for Yonkers, NY Businesses
If you're considering setting up a 401(k) or other plan for your Yonkers, NY business, there are a variety of plan options our retirement plan consultants are ready to discuss:
- 401(k) Plans — The foundation of American retirement plans, 401(k)s enable for a wide range of investments across stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a part 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 immediately. In exchange, safe harbor 401(k)s are not subject to annual nondiscrimination tests.
- 403(b) Plans — Comparable 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 earnings, defined benefit plans offer a predetermined 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 accounts for each participant's balance in a hypothetical account, which grows 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 adaptability of contribution plans.
- Simplified Employee Pension (SEP) IRAs — SEP plans offer a simple way for small businesses to offer 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 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 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 seeking to provide a more traditional retirement plan without the complexities of larger plans.
- Profit-Sharing Plans — Profit-sharing plans are versatile retirement solutions that enable employers to make optional contributions to their employees' retirement funds. Contributions are typically made out of the company's profits, giving employees an incentive to contribute to the company's success. These plans can be structured in many ways, offering flexibility in how contributions are distributed and calculated among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs provide employees with company stock, providing 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 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 Yonkers, NY retirement plan consultants manage over 30 plans in both small and large companies, and represent over $230 million in total plan assets across the country. Our expertise and experience 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 business, bearing in mind 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 also helping out your bottom line.
- Establishing the plan — Several 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 terms and conditions, and setting up a record-keeping system. Our Yonkers, NY 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 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, 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 have access to a wide array 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, determining 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 essential plan documentation, ensuring compliance with IRS and Department of Labor regulations. This includes plan adoption agreements, plan summaries, and annual notices to participants.
- Ongoing participant education — Education is vital 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 offer 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 frameworks 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 help ensure your Yonkers, NY business stays compliant. Additionally, 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 Yonkers, NY include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Fiduciary Financial Advisor
Yonkers, NY Retirement Plan Consultants | Correct Capital
As you think about the future of your company and the welfare of your workforce, implementing a retirement plan should be front and center. With our complete range of offerings and commitment to working exclusively in your best interest, we'll help you get your Yonkers, NY business and staff from where you are to where you want to go. To begin crafting a plan that fits with your individual company and objectives, speak to a retirement plan consultant in Yonkers, NY today at 877-930-4015 or contact us online.
