401(k) Companies in Clarkson Valley, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Clarkson Valley, MO. Establishing a 401(k) plan with trustworthy 401(k) advisors is a great way for small and mid-sized companies in Clarkson Valley, MO to appeal to and retain employees, incentivize great production, and get those much-needed tax breaks. Correct Capital Wealth Management has been introducing businesses to trusted 401(k) companies in Clarkson Valley, MO for over two decades. Call us today at 314-930-401(k) or contact us online to learn more about what Correct Capital can do for your Clarkson Valley, MO business and employees.
As of 2020, defined-contribution (DC) plans like 401(k)s comprise $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 businesses in the United States with under 50 employees offer a 401(k) plan to their employees, and more than one-third have no present intent to do so. A further 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 found that the most common motivation for employers to look into 401(k) companies and offer a plan was to incentivize their employees to save responsibly for retirement. In order to do this fruitfully for your prized employees, it is important to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Clarkson Valley, MO.
There are numerous advantages to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and safe 401(k) companies to bring you and your employees the retirement solutions that serve your needs and individual situation. Certain plans are more appropriate for certain companies, and our Clarkson Valley, MO 401(k) advisors help pick out 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 connect you to . From offering financial planning education, counseling individual employees on retirement planning, and helping you navigate how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a vital aspect of any 401(k) program.
Advantages of Offering a 401(k) Plan | Clarkson Valley, MO 401(k) Companies
The advantages of offering retirement planning to employees through 401(k) companies are apparent. Almost 40% of employers who did not offer 401(k) plans stated that their company was not bringing in sufficient earnings. But there are many reasons why initiating a 401(k) plan for your employees may wind up being best for your bottom line. The 401(k) consultants at Correct Capital will compile an all-inclusive guide to the myriad advantages certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Clarkson Valley, MO 401(k) Companies
We're going through the Great Resignation; a recent survey discovered that 55% of Americans anticipated searching for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer has a retirement plan. What better way to keep your favorite employees than letting them know their financial security matters to you, even after they are no longer working for you?
Motivating Employees | Clarkson Valley, MO 401(k) Companies
Many Clarkson Valley, MO companies give greater contributions when specific performance goals are met. Incentivizing a 401(k) plan, for instance, 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 | Clarkson Valley, 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 workers who were paid 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 obtainable for a maximum of three years, and there is a different tax credit for adding 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 added tax benefits for implementing a 401(k) program:
- Employer contributions are tax-deductible to the extent that the contributions do not surpass the limits stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and benefit from tax deferral until distribution.
One of the aspects that sets Correct Capital apart from other 401(k) consultants in Clarkson Valley, MO is that we offer financial planning as a service to plan participants. Through group education meetings, we'll ensure your employees know the ideal investment opportunities for themselves, understand how your 401(k) plan functions, and recognize how it's serving them. We can also use 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 prior company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Clarkson Valley, MO 401(k) Companies
The Clarkson Valley, MO 401(k) advisors at Correct Capital can help your business implement a variety of 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 plan that offers numerous investment options. Employers are able to equal their employees' contributions. Taxes are taken out when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, other than the fact that contributions are made with after-tax dollars. Income obtained 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 exist specifically for small businesses who need a cost-efficient way to offer their staff a retirement plan. Similar to 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 pay; or
- A non-elective contribution of 2% of a worker's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, except that the employer must make contributions that are fully vested when made. In return for required contributions, the IRS does not carry out its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Clarkson Valley, MO business and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in Clarkson Valley, 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 | Clarkson Valley, MO 401(k) Companies
Correct Capital stands out among Clarkson Valley, MO 401(k) advisors because we offer the level of personalized attention as smaller advisory firms, but combine it with the same savvy, accomplishment, and partnerships as larger firms. We offer independent and objective direction, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and ethical obligation to do so. Our retirement consultants have been trusted to introduce businesses to 401(k) companies for more than 25 years and presently 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.