401(k) Companies in Central West End, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Central West End, MO. Setting up a 401(k) plan with trusted 401(k) advisors is a great way for medium and small companies in Central West End, MO to draw and hold onto employees, encourage great performance, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting businesses with trustworthy 401(k) companies in Central West End, MO for over 20 years. Call us today at 314-930-401(k) or contact us online to discover more about what Correct Capital can do for your Central West End, MO business and employees.
As of 2020, defined-contribution (DC) plans such as 401(k)s comprise $9.9 trillion of the total $32.3 trillion in retirement plan funds 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 businesses in the United States with less than 50 employees provide a retirement plan as an employee benefit, and more than a third have no present aim to do so. An additional study found that a 401(k) plan is the only instrument many Americans have for putting money aside for retirement.
The J.P. Morgan survey reported that the most frequent motive for employers to research 401(k) companies and offer a plan was to incentivize their employees to save conscientiously for retirement. In order to do this effectively for your prized employees, it is important to reach out to a trusted, independent retirement planning advisory firm like Correct Capital based in Central West End, MO.
There are a great deal of advantages to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and safe 401(k) companies to put forward for you and your employees the retirement solutions that are in your best interests and specific circumstances. Specific plans work better for certain businesses, and our Central West End, MO 401(k) advisors help pick out the best 401(k) company and plan for you and your employees. As independent retirement consultants, there is no limit 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) advisory services are a vital facet of any 401(k) program.
Benefits of Offering a 401(k) Plan | Central West End, MO 401(k) Companies
The advantages of offering retirement planning to employees through 401(k) companies are obvious. Almost 40% of employers who did not offer 401(k) plans stated that their business was not generating enough income. But there are numerous reasons why initiating a 401(k) plan for your employees might end up being best for your bottom line. The 401(k) consultants at Correct Capital will compile an all-inclusive guide to the myriad benefits certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Central West End, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey found that 55% of Americans thought they would search for a new job in 2021 and 2022. Workers are 45% more at-ease about their retirement when their employer offers a retirement plan. What better way to retain your favorite employees than letting them know you care about their financial well-being, even after they've moved on?
Incentivizing Employees | Central West End, MO 401(k) Companies
Many Central West End, MO companies offer higher contributions when their employees accomplish 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 sustain their production.
Plan Startup Tax Credits | Central West End, MO 401(k) Companies
Small and medium companies can collect a tax credit for plan startup expenses if they meet three requirements stipulated by the IRS:
- You had less than 100 staff 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.
- In the three preceding years, you did not already have a retirement plan in place that benefited substantially the same employees.
The tax credit is accessible for a maximum of three years, and there is a different tax credit for attaching an automatic enrollment feature to a new 401(k) plan or one you already had.
Further Tax Advantages
In addition to the startup tax credit, the IRS offers two additional tax benefits for implementing a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not go over 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 Central West End, MO residents and employers. We'll work to reduce your tax liability as part of our 401(k) services.
One of the things that makes Correct Capital different from other 401(k) consultants in Central West End, MO is that we offer financial planning as a perk to plan participants. Through group education gatherings, we'll make sure your employees understand the best investment opportunities for themselves, know how your 401(k) plan functions, and understand how it's serving them. We can also use one-on-one sessions to discuss financial portfolio and asset management with individual workers. When you hire a new employee that had a 401(k) plan with their prior employer, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Central West End, MO 401(k) Companies
The Central West End, MO 401(k) advisors at Correct Capital can help your business initiate several different plans through a variety of 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 are able to match what their employees put in. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same traditional plans, however contributions are made with after-tax dollars. Gains made in the plan, such as interest, dividends, or capital gains, is tax-free when the employee withdraws money after maintaining the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are in place specially for small businesses looking for a cost-effective way to offer their workers retirement benefits. Like a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- An equal contribution of up to 3% of a worker's earnings; or
- A non-elective contribution of 2% of a staff members pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous 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 perform its annual nondiscrimination tests.
In our initial meeting, we'll gain an understanding of your Central West End, MO company and your employee's retirement needs to find the best type of 401(k) plan for you.
Other services we offer in Central West End, 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 | Central West End, MO 401(k) Companies
Correct Capital is unique among Central West End, MO 401(k) advisors because we provide the degree of individualized attention as smaller financial firms, but pair it with the same wisdom, professionalism, 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 duty to do so. Our retirement consultants have been trusted to introduce companies to 401(k) companies for more than two decades and currently represent over $230 million in total plan assets nationwide. Call us at 314-930-401(k) or contact us online to discuss your 401(k) needs today.