401(k) Companies in Chesterfield, MO
401(k) Companies in Chesterfield, MO. Establishing a 401(k) plan with trusted 401(k) advisors is a great way for small and mid-sized businesses in Chesterfield, MO to draw and hold onto employees, encourage great work, and receive those much-desired tax breaks. Correct Capital Wealth Management has been introducing companies to dependable 401(k) companies in Chesterfield, 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 Chesterfield, MO business and your employees succeed.
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 half of all employers in the United States with under 50 employees provide a 401(k) plan as an employee benefit, and more than 33% have no current plans 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 reason 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 crucial to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Chesterfield, MO.
There are various benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and safe 401(k) companies to bring you and your employees the retirement solutions that work for your needs and unique circumstances. Certain plans work better for certain companies, and our Chesterfield, MO 401(k) advisors help locate the preferred 401(k) company and plan for you and your employees. As independent retirement consultants, there is no restraint to which 401(k) companies we can work with . From offering investment education, advising individual employees on retirement planning, and helping you understand how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an indispensable part of any 401(k) program.
Benefits of Offering a 401(k) Plan | Chesterfield, MO 401(k) Companies
The advantages of providing retirement planning to workers through 401(k) companies are evident. Thirty-nine percent of employers who did not offer 401(k) plans gave their reason as being that their business was not generating enough profit. But there are numerous reasons why initiating a 401(k) plan for your employees may wind up being best for your bottom line. The 401(k) advisors at Correct Capital will compile a comprehensive guide to the various benefits certain plans will have for you. Among them are:
Attracting and Retaining Talent | Chesterfield, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey stated that 55% of Americans anticipated searching for a different job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer offers a defined contribution plan. What better way to hang on to your favorite employees than letting them know you care about their financial health, even after they've left the workforce?
Motivating Employees | Chesterfield, MO 401(k) Companies
Many Chesterfield, MO businesses give higher contributions when specific performance goals are met. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be a successful way to keep your best employees motivated to maintain their production.
Plan Startup Tax Credits | Chesterfield, MO 401(k) Companies
Small and medium companies can receive a tax credit for plan startup costs if they meet three requirements dictated by the IRS:
- You had under 100 employees 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.
- Your business 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 accessible for a maximum of three years, and there is an additional tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Advantages
In addition to the startup tax credit, the IRS offers two further tax benefits for having 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 posses tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to Chesterfield, MO companies. We'll work to decrease your tax liability as part of our 401(k) services.
Employee Education
One of the features that sets Correct Capital apart from other 401(k) consultants in Chesterfield, MO is that we offer financial planning as a benefit to your participating staff. With group education meetings, we'll make sure your employees recognize the ideal investment options for themselves, understand how your 401(k) plan works, and understand how it's helping them. We can also have one-on-one meetings to discuss financial portfolio and asset management with individual employees. When you hire a new employee that had a 401(k) plan with their prior employer, we can assist them 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 set up many different plans through a variety of different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that includes numerous investment options. Employers can equal what their employees put in. Taxes are taken out when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, except that contributions are made with after-tax dollars. Gains earned in the plan, such as interest, dividends, or capital gains, is tax-free when the individual withdraws funds after continuing the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are in place specifically for small businesses who want a cost-effective way to offer their workers retirement benefits. Similar to a traditional 401(k) plan, you may 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 an employee's 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, but the employer is required to make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not perform its annual nondiscrimination tests.
In our first meeting, we'll gain an understanding of your Chesterfield, MO company and your employee's retirement needs to identify 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
The Correct Capital Difference | Chesterfield, MO 401(k) Companies
Correct Capital is unique among Chesterfield, MO 401(k) advisors because we provide the degree of individualized attention as smaller financial firms, but pair it with the same savvy, accomplishment, and partnerships as larger firms. We offer independent and objective advice, 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 introduce companies to 401(k) companies for more than 25 years 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.
