401(k) Companies in Belleville, IL
401(k) Companies in Belleville, IL. Establishing a 401(k) plan with trusted 401(k) advisors is a wonderful way for medium and small companies in Belleville, IL to attract and retain employees, encourage great production, and get those much-desired tax breaks. Correct Capital Wealth Management has been connecting businesses with trusted 401(k) companies in Belleville, IL for more than 20 years. Call us today at 877-930-4015 or contact us online to find out 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 accounted for $9.9 trillion of the total $32.3 trillion in retirement plan assets 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 provide a 401(k) plan as an employee benefit, and over a third have no present plans to do so. A different study found that a 401(k) plan is the only avenue many Americans have for setting money aside for retirement.
The J.P. Morgan survey reported that the most frequent incentive for employers to explore 401(k) companies and offer a plan was to encourage their employees to save responsibly for retirement. In order to do this fruitfully for your prized employees, it is critical to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in Belleville, IL.
There are a great deal of advantages to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to put forward for you and your employees the retirement solutions that are in your best interests and specific situation. Certain plans work better for certain employers, and our Belleville, IL 401(k) advisors help recognize the preferred 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 connect you to . From offering investment education, advising individual employees on retirement planning, and helping you understand how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a crucial aspect of any 401(k) plan.
Benefits of Offering a 401(k) Plan | Belleville, IL 401(k) Companies
The benefits of providing retirement planning to workers through 401(k) companies are apparent. Almost 40% of employers who did not offer 401(k) plans said that their business was not generating sufficient income. 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) consultants at Correct Capital will compile an extensive guide to the myriad benefits certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Belleville, IL 401(k) Companies
We're enduring the Great Resignation; a recent survey found that 55% of Americans expected to search for a new job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer provides a retirement plan. What better way to hold on to your hardest working employees than assuring them that you care about their financial security, even after they are no longer working for you?
Incentivizing Employees | Belleville, IL 401(k) Companies
Many Belleville, IL companies give greater contributions when certain performance goals are met. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to sustain their performance.
Plan Startup Tax Credits | Belleville, IL 401(k) Companies
Small and medium companies can obtain a tax credit for plan startup costs if they meet three requirements stipulated by the IRS:
- You had 100 or fewer staff who received a minimum of $5,000 in compensation from you the preceding year.
- You had a minimum of one plan participant who was a non-highly compensated employee.
- In the three years prior, you did not already have a retirement plan in place that benefited substantially the same employees.
The tax credit is accessible for up to three years, and there is a further tax credit for attaching an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Benefits
In addition to the startup tax credit, the IRS offers two extra tax benefits for implementing 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 have the benefit of tax deferral until distribution.
Correct Capital's financial advisors also offer comprehensive tax planning services to Belleville, IL residents and employers. We'll work to lower your tax liability as part of our 401(k) services.
Employee Education
One of the facets that makes Correct Capital different from other 401(k) consultants in Belleville, IL is that we offer financial planning as a perk to plan participants. Through group education gatherings, we'll make certain your employees recognize the ideal investment opportunities for themselves, know how your 401(k) program works, and appreciate how it's benefiting them. We can also use one-on-one sessions to go through financial portfolio and asset management with individual workers. 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 | Belleville, IL 401(k) Companies
The Belleville, IL 401(k) advisors at Correct Capital can help your companies initiate several different plans through several different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers a range of investment options. Employers may match what their employees put in. Taxes are deducted when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, however contributions are made with money you have already paid taxes on. Gains obtained 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 are in place specifically for small businesses looking for a cost-effective way to offer their workers a retirement plan. Similar to a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- A matching contribution of no more than 3% of a staff members earnings; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, with the exception the employer is required to make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not conduct its yearly nondiscrimination tests.
In our first meeting, we'll get to know your Belleville, IL business and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in Belleville, IL include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
The Correct Capital Difference | Belleville, IL 401(k) Companies
Correct Capital is distinctive among Belleville, IL 401(k) advisors because we provide the degree of personalized care as smaller financial firms, but couple it with the same savvy, accomplishment, and connections as larger firms. We provide independent and objective guidance, always intended to do what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to connect businesses to 401(k) companies for over 25 years and presently represent over $230 million in total plan assets throughout the United States. Call us at 877-930-4015 or contact us online to go over your 401(k) needs today.
