401(k) Companies in St. Louis
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in St. Louis. Setting up a 401(k) plan with trusted 401(k) advisors is a great way for medium and small businesses in St. Louis to attract and retain employees, encourage great performance, and get those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with trusted 401(k) companies in St. Louis for over two decades. Call us today at 314-930-401(k) or contact us online to learn more about how Correct Capital can help your St. Louis business and your employees thrive.
As of 2020, defined-contribution (DC) plans such as 401(k)s accounted for $9.9 trillion of the total $32.3 trillion in retirement plan assets held in the United States, according to the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than half of all employers in the United States with less than 50 employees offer a retirement plan as an employee benefit, and over a third have no current plans to do so. Another study found that a 401(k) plan is the only vehicle many Americans have for saving for retirement.
The J.P. Morgan survey found that the most common motivation for employers to look into 401(k) companies and offer a plan was to encourage their employees to save responsibly for retirement. In order to do this effectively for your valued employees, it is important to consult a trusted, independent retirement planning advisory firm like Correct Capital based in St. Louis.
There are countless benefits to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and secure 401(k) companies. Certain plans work better for certain employers, and our St. Louis 401(k) advisors help identify the best 401(k) company and plan for you and your employees. As an independent advisory firm, there is no limit to which 401(k) companies we can work with. From offering financial planning education, advising individual employees on retirement planning, and helping you navigate how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an invaluable part of any 401(k) program.
Benefits of Offering a 401(k) Plan | St. Louis 401(k) Companies
The benefits of offering retirement planning to employees through 401(k) companies are obvious. Thirty-nine percent of employers who did not offer 401(k) plans stated that their business was not generating sufficient revenue. But there are many reasons why setting up a 401(k) plan for your employees may end up being best for your bottom line. The 401(k) consultants at Correct Capital will put together a comprehensive guide to the various benefits certain plans will have for you. Among them are:
Attracting and Retaining Talent | St. Louis 401(k) Companies
We're in the middle of the Great Resignation; a recent survey found that 55% of Americans anticipated looking for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer offers a defined contribution plan. What better way to hang on to your best employees than letting them know you care about their financial security, even after they've left the workforce?
Incentivizing Employees | St. Louis 401(k) Companies
Many St. Louis businesses offer greater contributions when specific performance goals are met. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be a great way to keep your best employees motivated to keep up their performance.
Plan Startup Tax Credits | St. Louis 401(k) Companies
Small and medium companies can receive a tax credit for plan startup costs if they meet three requirements laid out by the IRS:
- You had 100 or fewer employees who received at least $5,000 in compensation from you the preceding year.
- You had at least one plan participant who was a non-highly compensated employee.
- Your business did not already have a retirement plan covering substantially the same employees during the three years preceding the year for which you are claiming credit.
The tax credit is available for up to three years, and there is an additional tax credit for adding an automatic enrollment feature to a new or existing 401(k) plan.
Additional Tax Advantages
Besides the startup tax credit, the IRS offers two additional tax benefits for sponsoring a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not exceed the limits set out in Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
Correct Capital's financial advisors also offer comprehensive tax planning services to St. Louis companies. We'll work to reduce your tax liability as part of our 401(k) services.
One of the things that sets Correct Capital apart from other 401(k) advisors in St. Louis is that we offer financial planning as a benefit to plan participants. Through group education meetings, we'll make sure your employees understand the best investment options for themselves, know how your 401(k) plan works, and see how it's benefiting them. We can also use one-on-one meetings to talk over financial portfolio and asset management with individual employees. When you hire a new employee that had a 401(k) plan with their previous employer, we can help them with their 401(k) rollover.
Types of 401(k) Plans | St. Louis 401(k) Companies
The St. Louis 401(k) advisors at Correct Capital can help your business set up a variety of different plans through a variety of 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that offers a range of investment options. Employers may match their employees' contributions. Taxes are paid when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, except that contributions are made with after-tax dollars. Income earned in the plan, such as interest, dividends, or capital gains, is tax-free when the individual withdraws funds after maintaining the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans exist specifically for small businesses who want a cost-efficient way to offer their employees a retirement plan. Like a traditional 401(k) plan, you may take money out of an employee's paycheck as their contribution. However, the employer must make either:
- A matching contribution of up to 3% of an employee's pay; or
- A non-elective contribution of 2% of an employee's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to regular 401(k)s, but they must include employer contributions that are fully vested when made. In return for required contributions, the IRS does not conduct its annual nondiscrimination tests.
When we first meet with you, we'll get to know your St. Louis business and your employee's retirement needs to offer the best type of 401(k) plan we can.
The Correct Capital Difference | St. Louis 401(k) Companies
Correct Capital stands out among St. Louis 401(k) advisors because we offer the level of personalized attention and care as smaller advisory firms, but combine it with the same knowledge, experience, and connections as larger firms. We provide independent and objective advice, always geared toward doing what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and ethical obligation to do so. Our retirement consultants have been trusted to connect businesses to 401(k) companies for over 25 years and currently represent over $230 million in total plan assets across the United States. Call us at 314-930-401(k) or contact us online to talk over your 401(k) needs today.