401(k) Companies in Chesterfield, MO
401(k) Companies in Chesterfield, MO. Establishing a 401(k) plan with trustworthy 401(k) advisors is a great way for small and mid-sized companies in Chesterfield, MO to draw and hold onto employees, incentivize great production, and obtain those much-desired tax breaks. Correct Capital Wealth Management has been introducing companies to trustworthy 401(k) companies in Chesterfield, MO for over 20 years. Call us today at 314-930-401(k) or contact us online to discover more about how Correct Capital can help your Chesterfield, MO business and your employees thrive.
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, as reported by 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 under 50 employees offer a retirement plan to their employees, and over 33% have no present intentions to do so. A different study found that a 401(k) plan is the only avenue many Americans have for saving for retirement.
The J.P. Morgan survey stated that the most common incentive for employers to explore 401(k) companies and provide a plan was to encourage their employees to save responsibly for retirement. In order to do this effectively for your best employees, it is essential to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Chesterfield, MO.
There are various advantages to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to offer you and your employees the retirement solutions that are in your needs and individual circumstances. Specific plans work better for certain employers, and our Chesterfield, MO 401(k) advisors help locate 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, advising individual employees on retirement planning, and assisting you maneuver how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a crucial part of any 401(k) plan.
Benefits of Offering a 401(k) Plan | Chesterfield, MO 401(k) Companies
The benefits of offering retirement planning to staff through 401(k) companies are evident. Almost 40% of employers who did not offer 401(k) plans said that their reason was that their company was not generating enough income. But there are many reasons why initiating a 401(k) plan for your employees could end up being best for your bottom line. The 401(k) consultants at Correct Capital will compile a comprehensive guide to the myriad advantages certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Chesterfield, MO 401(k) Companies
We're living through the Great Resignation; a recent survey discovered that 55% of Americans anticipated searching for a different job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer provides a retirement plan. What better way to keep your best employees than assuring them that you care about their financial well-being, even after they are no longer working for you?
Incentivizing Employees | Chesterfield, MO 401(k) Companies
Many Chesterfield, MO companies offer greater contributions when their employees reqach certain performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an effective way to keep your best employees motivated to sustain their production.
Plan Startup Tax Credits | Chesterfield, MO 401(k) Companies
Small and medium companies can obtain a tax credit for plan startup costs if they satisfy three requirements stipulated by the IRS:
- You had less than 100 staff who received a minimum of $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 covered 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 or existing 401(k) plan.
Further Tax Advantages
Other than the startup tax credit, the IRS offers two further tax benefits for sponsoring a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not surpass 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 extensive tax planning services to Chesterfield, MO businesses. We'll strive to reduce your tax liability as part of our 401(k) services.
Employee Education
One of the things that sets Correct Capital apart from other 401(k) consultants in Chesterfield, MO is that we offer financial planning as a perk to plan participants. With group education gatherings, we'll ensure your employees understand the ideal investment options for themselves, know how your 401(k) plan functions, and see how it's serving them. We can also have one-on-one sessions to go through financial portfolio and asset management with individual employees. When a new member joins your team and they had a 401(k) plan with their old company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Chesterfield, MO 401(k) Companies
The Chesterfield, MO 401(k) consultants at Correct Capital can help your companies implement many different plans through many different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that offers a range of investment options. Employers are able to match their employees' contributions. Taxes are paid when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, except 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 employee takes money out after preserving 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 who need a cost-efficient way to offer their staff a retirement plan. Like a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- A matching contribution of up to 3% of a staff members pay; or
- A non-elective contribution of 2% of an employee's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, however they must include employer contributions that are fully vested when made. In consideration of for required contributions, the IRS does not perform its yearly nondiscrimination tests.
In our initial meeting, we'll get to know your Chesterfield, MO business and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Chesterfield, 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
- Social Security Consultants Near Me
The Correct Capital Difference | Chesterfield, MO 401(k) Companies
Correct Capital is distinctive among Chesterfield, MO 401(k) advisors because we provide the level of individualized care as smaller advisory firms, but combine it with the same knowledge, accomplishment, and connections as larger firms. We provide independent and objective guidance, always intended to do what's best for you; 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 across the United States. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.
