401(k) Companies in Clayton, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Clayton, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a great way for small and mid-sized companies in Clayton, MO to attract and retain employees, incentivize great production, and receive those much-needed tax breaks. Correct Capital Wealth Management has been introducing businesses to secure 401(k) companies in Clayton, MO for more than 20 years. Call us today at 314-930-401(k) or contact us online to find out more about how Correct Capital can help your Clayton, MO business and your employees flourish.
As of 2020, defined-contribution (DC) plans like 401(k)s comprise $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 50% of all companies in the United States with under 50 employees provide a retirement plan as an employee benefit, and more than one-third have no current plans to do so. Another study found that a 401(k) plan is the only instrument many Americans have for setting money aside for retirement.
The J.P. Morgan survey stated that the most common reason for employers to research 401(k) companies and offer a plan was to encourage their employees to set money aside conscientiously for retirement. In order to do this effectively for your valued employees, it is important to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in Clayton, MO.
There are various benefits to utilizing 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 serve your best interests and individual circumstances. Specific plans work better for certain businesses, and our Clayton, MO 401(k) advisors help locate the preferred 401(k) company and plan for you and your employees. As independent advisors, there is no limit to which 401(k) companies we can connect you to . From offering investment education, advising individual employees on retirement planning, and assisting you understand how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a vital part of any 401(k) plan.
Benefits of Offering a 401(k) Plan | Clayton, MO 401(k) Companies
The benefits of offering retirement planning to employees through 401(k) companies are evident. Almost 40% of employers who did not offer 401(k) plans stated that their business was not generating sufficient income. But there are a lot of reasons why implementing a 401(k) plan for your employees could be best for your bottom line down the road. The 401(k) consultants at Correct Capital will put together an all-inclusive guide to the myriad benefits certain programs will have for you. Among them are:
Attracting and Retaining Talent | Clayton, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey discovered that 55% of Americans anticipated looking for a new job in 2021 and 2022. Workers are 45% more assured about their retirement when their employer has a retirement plan. What better way to hang on to your hardest working employees than assuring them that their financial well-being matters to you, even after they are no longer working for you?
Incentivizing Employees | Clayton, MO 401(k) Companies
Many Clayton, MO businesses offer greater contributions when their employees accomplish specific performance goals. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be a successful way to keep your best employees motivated to keep up their performance.
Plan Startup Tax Credits | Clayton, MO 401(k) Companies
Small and medium companies are able to get a tax credit for plan startup expenses if they satisfy three requirements laid out by the IRS:
- You had less than 100 employees who received a minimum of $5,000 in compensation from you the previous year.
- You had at least 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 up to three years, and there is an additional tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.
Further Tax Benefits
In addition to the startup tax credit, the IRS offers two added 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 benefit from tax deferral until distribution.
Correct Capital's financial advisors also offer extensive tax planning services to Clayton, MO residents and employers. We'll work to lower your tax liability as part of our 401(k) services.
One of the facets that sets Correct Capital apart from other 401(k) consultants in Clayton, MO is that we offer financial planning as a perk to your participating staff. With group education meetings, we'll make certain your employees recognize the best investment options for themselves, know how your 401(k) program functions, and understand how it's benefiting them. We can also use one-on-one sessions to talk over financial portfolio and asset management with individual employees. When a new employer joins your team and they had a 401(k) plan with their previous employer, we can assist them 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 business implement a variety of different plans through a variety of different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers numerous investment options. Employers are able to match what their employees put in. Taxes are paid when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, but contributions are made with after-tax dollars. Income earned 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 at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are specifically for small businesses looking for a cost-efficient way to offer their employees a retirement plan. Similar to a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. But, 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 similar to to regular 401(k)s, except that the employer is required to make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its yearly nondiscrimination tests.
When we first meet with you, we'll get to know your Clayton, MO company and your employee's retirement needs to find the ideal type of 401(k) plan for you.
Other services we offer in Clayton, MO include:
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
- Social Security Consultants Near Me
- Retirement Calculator
- Retirement Planning
- Rollover 401(k)
- Wealth Management
The Correct Capital Difference | Clayton, MO 401(k) Companies
Correct Capital is distinctive among Clayton, MO 401(k) advisors because we offer the degree of personalized care as smaller advisory firms, but couple it with the same knowledge, accomplishment, and connections as larger firms. We offer independent and objective guidance, always geared toward doing what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and moral obligation to do so. Our retirement consultants have been trusted to connect companies 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.