401(k) Companies in Clayton, MO
401(k) Companies in Clayton, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a wonderful way for small and mid-sized companies in Clayton, MO to appeal to and hold onto employees, encourage great performance, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been introducing employers to trustworthy 401(k) companies in Clayton, MO for more than 20 years. Call us today at 877-930-4015 or contact us online to discover more about how Correct Capital can help your Clayton, 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 funds 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 companies in the United States with under 50 employees provide a retirement plan as an employee benefit, and over 33% have no present plans to do so. An additional study found that a 401(k) plan is the only avenue many Americans have for putting money aside for retirement.
The J.P. Morgan survey found that the most frequent motivation for employers to research 401(k) companies and provide a plan was to encourage their employees to save conscientiously for retirement. In order to do this successfully for your valued employees, it is important to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Clayton, MO.
There are countless advantages to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and stable 401(k) companies to put forward for you and your employees the retirement solutions that are in your needs and individual situation. Specific plans are more apt for certain employers, and our Clayton, MO 401(k) advisors help locate the preferred 401(k) company and plan for you and your employees. As an independent advisory firm, there is no restriction to which 401(k) companies we can connect you to . From offering financial planning education, counseling individual employees on retirement planning, and assisting you maneuver how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a vital aspect of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Clayton, MO 401(k) Companies
The advantages of providing retirement planning to staff through 401(k) companies are clear. Almost 40% of employers who did not offer 401(k) plans said that their reason was that their business was not bringing in enough revenue. But there are countless reasons why setting up a 401(k) plan for your employees might be best for your bottom line down the road. The 401(k) consultants at Correct Capital will compile an extensive guide to the myriad advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Clayton, MO 401(k) Companies
We're living through the Great Resignation; a recent survey stated that 55% of Americans anticipated looking for a new job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer offers a 401(k) plan. What better way to hold on to your best employees than letting them know their financial security matters to you, even after they are no longer working for you?
Incentivizing Employees | Clayton, MO 401(k) Companies
Many Clayton, MO employers give higher contributions when certain performance goals are met. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be a great way to keep your best employees motivated to maintain their production.
Plan Startup Tax Credits | Clayton, MO 401(k) Companies
Small and medium companies can receive a tax credit for plan startup costs if they fulfill three requirements laid out by the IRS:
- You had 100 or fewer workers 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.
- Your business did not already have a retirement plan covering 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 or extant 401(k) plan.
Additional Tax Advantages
Apart from the startup tax credit, the IRS offers two further tax benefits for having a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not exceed 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 comprehensive tax planning services to Clayton, MO residents and employers. We'll work to reduce 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 Clayton, MO is that we offer financial planning as a perk to plan participants. Through group education meetings, we'll make certain your employees understand the ideal investment options for themselves, know how your 401(k) plan works, and recognize how it's benefiting them. We can also use one-on-one meetings to talk over financial portfolio and asset management with individual employees. When you hire a new employee that had a 401(k) plan with their previous employer, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Clayton, MO 401(k) Companies
The Clayton, MO 401(k) advisors at Correct Capital can help your companies set up several different plans through several different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers a range of investment options. Employers may equal what their employees put in. Taxes are paid when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, other than the fact 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 employee withdraws funds 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 specifically for small businesses who want a cost-effective way to offer their workers a retirement plan. Similar to a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. However, the employer must make either:
- An equal contribution of no more than 3% of a worker's earnings; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to 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 perform its yearly nondiscrimination tests.
In our initial meeting, we'll get to know your Clayton, MO business and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Clayton, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
The Correct Capital Difference | Clayton, MO 401(k) Companies
Correct Capital is unique among Clayton, MO 401(k) advisors because we offer the level of individualized care as smaller financial firms, but combine it with the same savvy, experience, and partnerships as larger firms. We provide independent and objective direction, always geared toward doing what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and ethical obligation to do so. Our retirement consultants have been trusted to introduce companies to 401(k) companies for over two decades and at present we 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.
