Small Business Retirement Plans in Oakville, MO. Offering a retirement plan to your Oakville, MO employees offers a variety of benefits, including tax reductions and a great way to attract and retain talent. While the benefits may be clear, the complexities of establishing and maintaining small business retirement plans are not. What type of plan is best for your business? What are the different laws I'll have to follow? What do I do when I want to change plans, or if I'm closing my business? Correct Capital's team of Oakville, MO financial planners has over 70 years of combined experience helping business owners and their employees get the most out of having a sound retirement plans and navigate the complexity of their individual plans and benefits. For anything from initial setup and employee education to making annual adjustments, call Correct Capital today at 314-930-401K or contact us online.
What Types of Retirement Plans Are Available to Small Businesses in Oakville, MO?
Uncle Sam and various financial custodians offer different plans and accounts for small business owners and their employees to aid in there retirement planning. Depending on the specifics of your business, you may open any of the following:
- SEP-IRA — This type of individual retirement account is available to owner-only businesses, freelancers, and businesses with very few employees. It functions similarly to a traditional IRA, where contributions are tax-deductible, and distributions are taxed as income. Contributions are limited to the lessor of 25% of an employee's yearly earnings or $66,000 (as of 2023). Employers are required to contribute an equal percentage of compensation to employees as to their own, however the contributions are tax-deductible.
- SIMPLE IRA — "SIMPLE" stands for "Savings Investment Match Plan for Employees," and these plans are for businesses with up to 100 employees. Employees can fund their own accounts through salary deferrals, and employers can also contribute. This is relatively inexpensive for employers as it's mainly funded by employees, and employer contributions can be deducted as a business expense.
- Personal Defined Benefit Plan — This plan is strictly for business with no non-owner employees, or those with no more than 5 employees. With this plan, you target how much they would like to have in retirement, and contribution limits are adjusted annually based on their desired income, age, salary, and tenure with the company. While this plan is highly customizable and allows for significant contributions, there may be costs and fees.
- Business 401(k) Plan — 401(k)s can be opened by private companies of any size, and are highly customizable. Employees may defer their salary as contributions, and employers can make annual contributions. Most 401(k) plans offer considerable tax planning benefits for both companies and workers. They can include:
- Individual 401(k) — Also known as a Solo 401(k), this plan has many of the same rules and benefits as a business 401(k), but only for owner-only businesses, or businesses where the only employee is a spouse. You can contribute up to the annual 401(k) limit each year, and you can contribute a set percentage of your compensation or, if self-employed, an amount considering your earned income and deducting half of self-employment tax paid and contributions made by you over the course of the year. You can choose to open a Roth 401(k) account, or roll over pre-tax assets.
Each plan has its own benefits and drawbacks, and which may be "best" for you will be based on your business and your and your employees' needs. Different retirement have varying tax benefits, fees, required minimum distributions, limits on how much you can put in each year, and more. A reputed financial advisor like our team at Correct Capital will be able to help you determine which plan works best for you and your team.
Benefits of Setting Up a Small Business Retirement Plan in Oakville, MO
The particular, financial-based benefits for your Oakville, MO small business retirement plan is dependent upon which plan you set up. That said, a small business retirement plan, whichever one you choose, benefit employers and employees in the same way. Over half of employees say that a retirement plan is a "very important" factor in job satisfaction, while employers reap the benefits both during tax season and in office productivity. Below are some of the main benefits for both businesses and employees of having a small business retirement plan:
- Improved confidence in their retirement planning
- Tax deductions
- Contributions are simple with payroll deductions
- They do not pay taxes on contributions or investments gains until they take them out
- As interest accrues, small contributions grow into significant savings
- Ability to perform a 401(k) rollover if they change employers
- Attract, recruit, and retain high performers
- Incentivize based on performance-based employer contributions
- Employer contributions are tax-deductible
- Flexible plan options to fit your plan to your needs
- Tax credits upon initial set-up
Why Should I Consult With a Financial Advisor in Oakville, MO to Help With My Small Business Retirement Plan?
Setting up small business retirement plans is not the same thing as setting up a personal savings plan at your local Oakville, MO bank. While the federal government does not currently obligate any business to offer a retirement plan to employees, certain states require employers of a certain size to have a retirement plan. Oakville, MO retirement consultants that have spent years helping business owners open retirement plans are usually needed to not only ensure the plan is right for you, but that you follow frequently chancing tax and business laws.
As your Oakville, MO retirement plan consultants for your small business, our advisers will:
- Help you decide the best plan for you, and the right custodian to hold plan assets
- Assist you in establishing your plan, including adopting a written plan, establishing a trust for plan assets, helping employees understand the plan's terms, and creating a record keeping system
- Help you operate your plan by adapting as we need to to applicable laws, managing the plan's assets, and distributing benefits
- Help educate your employees on your plan, its benefits, and how it can serve as a component to their continued financial success
Correct Capital's Oakville, MO financial planners are fiduciary advisors, meaning we are legally and ethically obligated to do what's best for you and your employees. The only product we offer is trust. Schedule a consultation with a member of our advisor team today.
Other services we offer in Oakville, MO include:
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Tax Planning
- Social Security Consultants Near Me
- Retirement Calculator
- Retirement Planning
- Rollover 401(k)
Small Business Retirement Plans in Oakville, MO | Correct Capital
Operating a small business comes with countless moving parts and tasks to ensure things run smoothly — navigating the complexities of a small business retirement plan doesn't have to be one of them. Correct Capital currently manages over 30 plans in both small and large companies, and represents over $230 million in total plan assets* across the United States. To set up a retirement plan for your small business, or learn what we can do for business owners, call Correct Capital today at 314-930-401K or contact us through our website.
*as of January 2022