401(k) Companies in Brentwood, MO
401(k) Companies in Brentwood, MO. Setting up a 401(k) plan with trusted 401(k) advisors is an excellent way for medium and small businesses in Brentwood, MO to draw and retain employees, incentivize great production, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with trusted 401(k) companies in Brentwood, MO for more than 20 years. Call us today at 877-930-4015 or contact us online to learn more about how Correct Capital can help your Brentwood, MO business and your employees prosper.
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 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 under 50 employees offer a 401(k) plan as an employee benefit, and over one-third have no current intent to do so. Another study found that a 401(k) plan is the only instrument many Americans have for saving for retirement.
The J.P. Morgan survey found that the most common incentive for employers to research 401(k) companies and provide a plan was to encourage their employees to save responsibly for retirement. In order to do this successfully for your prized employees, it is critical to reach out to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Brentwood, MO.
There are various benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and stable 401(k) companies to put forward for you and your employees the retirement solutions that serve your best interests and specific circumstances. Specific plans work better for certain companies, and our Brentwood, MO 401(k) advisors help pick out the best 401(k) company and plan for you and your employees. As independent advisors, 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 understand 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 | Brentwood, MO 401(k) Companies
The benefits of providing retirement planning to employees through 401(k) companies are evident. Thirty-nine percent of employers who did not offer 401(k) plans stated that their company was not bringing in sufficient earnings. But there are numerous reasons why implementing a 401(k) plan for your employees might be best for your bottom line in the end. The 401(k) consultants at Correct Capital will put together an extensive guide to the many benefits certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Brentwood, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey discovered that 55% of Americans thought they would look for a different job in 2021 and 2022. Workers are 45% more at-ease about their retirement when their employer provides 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?
Motivating Employees | Brentwood, MO 401(k) Companies
Many Brentwood, MO businesses offer increased contributions when specific performance goals are met. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be a successful way to keep your employees' motivation high and to continue their production.
Plan Startup Tax Credits | Brentwood, MO 401(k) Companies
Small and medium companies can obtain a tax credit for plan startup costs if they meet three requirements dictated by the IRS:
- You had less than 100 employees who collected a minimum of $5,000 in compensation from you the preceding year.
- You had at least 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 available for a maximum of three years, and there is a different tax credit for attaching an automatic enrollment feature to a new or extant 401(k) plan.
Further Tax Advantages
Besides the startup tax credit, the IRS offers two other tax benefits for implementing 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 have the advantage of tax deferral until distribution.
Correct Capital's financial advisors also offer extensive tax planning services to Brentwood, MO residents and employers. We'll work to decrease your tax liability as part of our 401(k) services.
Employee Education
One of the things that makes Correct Capital different from other 401(k) advisors in Brentwood, MO is that we offer financial planning as a perk to your participating staff. With group education gatherings, we'll make sure your employees know the best investment opportunities for themselves, are aware of how your 401(k) plan functions, and see how it's serving them. We can also have one-on-one meetings to talk over financial portfolio and asset management with individual workers. When you hire a new employee that had a 401(k) plan with their previous company, we can help them with their 401(k) rollover.
Types of 401(k) Plans | Brentwood, MO 401(k) Companies
The Brentwood, MO 401(k) consultants at Correct Capital can help your business initiate a variety of 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 offers a wide array of investment options. Employers may equal their employees' contributions. Taxes are deducted when the savings and gains 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. Gains made in the plan, such as interest, dividends, or capital gains, is tax-free when the individual takes money out 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 can take money out of an employee's paycheck as their contribution. However, the employer must make either:
- A matching contribution of no more than 3% of a worker's earnings; or
- A non-elective contribution of 2% of a worker's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, with the exception they must include employer contributions that are fully vested when made. In exchange for for required contributions, the IRS does not perform its annual nondiscrimination tests.
In our first meeting, we'll get to know your Brentwood, MO business and your employee's retirement needs to identify the ideal type of 401(k) plan for you.
Other services we offer in Brentwood, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
The Correct Capital Difference | Brentwood, MO 401(k) Companies
Correct Capital is unique among Brentwood, MO 401(k) advisors because we provide the level of individualized care as smaller advisory firms, but couple it with the same wisdom, accomplishment, and connections as larger firms. We offer independent and objective advice, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and moral responsibility to do so. Our retirement consultants have been trusted to introduce businesses to 401(k) companies for over two decades and presently represent over $230 million in total plan assets nationwide. Call us at 877-930-4015 or contact us online to go over your 401(k) needs today.
