401(k) Companies in Arnold, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Arnold, MO. Initiating a 401(k) plan with dependable 401(k) advisors is a great way for small and mid-sized businesses in Arnold, MO to appeal to and retain employees, encourage great performance, and get those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with trustworthy 401(k) companies in Arnold, MO for more than two decades. Call us today at 314-930-401(k) or contact us online to learn more about how Correct Capital can help your Arnold, MO business and your employees prosper.
As of 2020, defined-contribution (DC) plans like 401(k)s made up $9.9 trillion of the total $32.3 trillion in retirement plan capital held in the United States, according to data from the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than 50% of all companies in the United States with less than 50 employees offer a retirement plan to their employees, and over one-third have no present plans to do so. A different 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 motive for employers to look into 401(k) companies and provide a plan was to incentivize their employees to save conscientiously for retirement. In order to do this effectively for your best employees, it is critical to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Arnold, MO.
There are countless advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and stable 401(k) companies to offer you and your employees the retirement solutions that work for your best interests and specific circumstances. Certain plans are more apt for certain companies, and our Arnold, MO 401(k) advisors help recognize the preferred 401(k) company and plan for you and your employees. As an independent retirement planning firm, there is no restraint to which 401(k) companies we can work with . From offering financial planning education, guiding individual employees on retirement planning, and helping you maneuver how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an invaluable facet of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Arnold, MO 401(k) Companies
The advantages of offering retirement planning to staff through 401(k) companies are obvious. Thirty-nine percent of employers who did not offer 401(k) plans said that their company was not generating enough income. But there are a lot of reasons why implementing a 401(k) plan for your employees might wind up being best for your bottom line. The 401(k) advisors at Correct Capital will put together a comprehensive guide to the myriad benefits certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Arnold, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey stated that 55% of Americans anticipated searching for a different job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer offers a defined contribution plan. What better way to hang on to your hardest working employees than assuring them that their financial health matters to you, even after they are no longer working for you?
Motivating Employees | Arnold, MO 401(k) Companies
Many Arnold, MO companies offer greater contributions when their employees reqach specific performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your best employees motivated to keep up their production.
Plan Startup Tax Credits | Arnold, MO 401(k) Companies
Small and medium companies are able to collect a tax credit for plan startup costs if they fulfill three requirements dictated by the IRS:
- You had 100 or fewer employees who were paid at least $5,000 in compensation from you the year prior.
- 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 accessible for up to three years, and there is another tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Advantages
Besides the startup tax credit, the IRS offers two further tax benefits for having a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not surpass the limits stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and have the benefit of tax deferral until distribution.
One of the facets that makes Correct Capital different from other 401(k) advisors in Arnold, MO is that we offer financial planning as a service to your participating employees. With group education gatherings, we'll make certain your employees recognize the best investment options for themselves, understand how your 401(k) program works, and understand how it's benefiting them. We can also use one-on-one sessions to go through financial portfolio and asset management with individual staff. When a new member joins your team and they had a 401(k) plan with their previous employer, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | Arnold, MO 401(k) Companies
The Arnold, MO 401(k) advisors at Correct Capital can help your companies set up several different plans through many different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes a range of investment options. Employers may equal their employees' contributions. Taxes are taken out when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same traditional plans, other than the fact that contributions are made with money you have already paid taxes on. Income earned in the plan, such as interest, dividends, or capital gains, is tax-free when the employee withdraws money after continuing the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans exist specifically for small businesses who want a cost-efficient way to offer their staff retirement benefits. Similar to a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. However, the employer must make either:
- A matching contribution of up to 3% of a worker's pay; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, other than the fact that the employer is required to make 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 gain an understanding of your Arnold, MO company and your employee's retirement needs to find the ideal type of 401(k) plan for you.
Other services we offer in Arnold, MO include:
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
- Social Security Consultants Near Me
- Retirement Calculator
- Retirement Planning
The Correct Capital Difference | Arnold, MO 401(k) Companies
Correct Capital stands out among Arnold, MO 401(k) advisors because we provide the level of individualized attention as smaller financial firms, but pair it with the same savvy, professionalism, and partnerships as larger firms. We provide independent and objective counsel, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and moral obligation to do so. Our retirement consultants have been trusted to introduce companies to 401(k) companies for more than 25 years and at present we represent over $230 million in total plan assets throughout the United States. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.