401(k) Companies in Belleville, IL
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Belleville, IL. Setting up a 401(k) plan with trustworthy 401(k) advisors is a wonderful way for small and mid-sized companies in Belleville, IL to appeal to and retain employees, incentivize great production, and obtain those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with trusted 401(k) companies in Belleville, IL for over 20 years. Call us today at 314-930-401(k) or contact us online to learn more about what Correct Capital can do for your Belleville, IL business and employees.
As of 2020, defined-contribution (DC) plans such as 401(k)s made up $9.9 trillion of the total $32.3 trillion in retirement plan assets held in the United States, as reported by 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 under 50 employees provide a 401(k) plan as an employee benefit, and over one-third have no present aim to do so. A further study found that a 401(k) plan is the only vehicle many Americans have for setting money aside for retirement.
The J.P. Morgan survey stated that the most frequent reason for employers to research 401(k) companies and offer a plan was to incentivize their employees to set money aside conscientiously for retirement. In order to do this effectively for your prized employees, it is critical to reach out to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Belleville, IL.
There are numerous advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and stable 401(k) companies to offer you and your employees the retirement solutions that work for your needs and individual circumstances. Specific plans work better for certain companies, and our Belleville, IL 401(k) advisors help determine the best 401(k) company and plan for you and your employees. As an independent retirement planning firm, there is no restriction to which 401(k) companies we can connect you to . From offering financial planning education, counseling individual employees on retirement planning, and helping you navigate how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a vital facet of any 401(k) program.
Advantages of Offering a 401(k) Plan | Belleville, IL 401(k) Companies
The advantages of offering retirement planning to employees through 401(k) companies are clear. Thirty-nine percent of employers who did not offer 401(k) plans gave their reason as being that their business was not generating sufficient earnings. But there are a lot of reasons why setting up a 401(k) plan for your employees may end up being best for your bottom line. The 401(k) advisors at Correct Capital will compile a comprehensive guide to the myriad advantages certain programs will have for you. Among them are:
Attracting and Retaining Talent | Belleville, IL 401(k) Companies
We're enduring the Great Resignation; a recent survey found that 55% of Americans anticipated looking for a different job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer has a defined contribution plan. What better way to keep your best employees than assuring them that their financial security is important to you, even after they've moved on?
Incentivizing Employees | Belleville, IL 401(k) Companies
Many Belleville, IL companies offer increased contributions when certain performance goals are met. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an effective way to keep your employees' motivation high and to sustain their production.
Plan Startup Tax Credits | Belleville, IL 401(k) Companies
Small and medium companies can get a tax credit for plan startup expenses 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 previous year.
- You had a minimum of one plan participant who was a non-highly compensated employee.
- Your company did not already have a retirement plan benefiting substantially the same employees during the three years preceding the year for which you are claiming credit.
The tax credit is available for a maximum of three years, and there is another tax credit for attaching an automatic enrollment feature to a new or extant 401(k) plan.
Further Tax Benefits
Besides the startup tax credit, the IRS offers two extra tax benefits for having a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not go over the limits dictated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
One of the facets that sets Correct Capital apart from other 401(k) advisors in Belleville, IL is that we offer financial planning as a perk to your participating employees. Through group education meetings, we'll make certain your employees understand the best investment options for themselves, know how your 401(k) plan works, and recognize how it's serving them. We can also use one-on-one sessions to talk over financial portfolio and asset management with individual workers. When a new employer joins your team and they had a 401(k) plan with their previous company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Belleville, IL 401(k) Companies
The Belleville, IL 401(k) consultants at Correct Capital can help your business initiate several different plans through many different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers a wide array of investment options. Employers may match their employees' contributions. Taxes are paid when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same traditional plans, however contributions are made with money you have already paid taxes on. Income made in the plan, such as interest, dividends, or capital gains, is tax-free when the individual withdraws money 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 staff a retirement plan. Like a traditional 401(k) plan, you can 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 analogous to regular 401(k)s, except that the employer must make contributions that are fully vested when made. In exchange for for required contributions, the IRS does not perform its yearly nondiscrimination tests.
In our first meeting, we'll get to know your Belleville, IL business and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Belleville, IL include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Belleville, IL 401(k) Companies
Correct Capital is unique among Belleville, IL 401(k) advisors because we provide the level of individualized attention as smaller financial firms, but pair it with the same knowledge, experience, 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 ethical obligation to do so. Our retirement consultants have been trusted to connect businesses to 401(k) companies for over 25 years and at present we represent over $230 million in total plan assets across the United States. Call us at 314-930-401(k) or contact us online to discuss your 401(k) needs today.