401(k) Companies in Columbia, IL

401(k) Companies in Columbia, IL A Great 401(k) Plan Benefits You and Your Employees

401(k) Companies in Columbia, IL. Setting up a 401(k) plan with trustworthy 401(k) advisors is an excellent way for medium and small businesses in Columbia, IL to attract and retain employees, incentivize great performance, and obtain those much-desired tax breaks. Correct Capital Wealth Management has been introducing businesses to secure 401(k) companies in Columbia, IL for over 20 years. Call us today at 314-930-401(k) or contact us online to find out more about what Correct Capital can do for your Columbia, IL business and employees.

As of 2020, defined-contribution (DC) plans such as 401(k)s accounted for $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 businesses in the United States with under 50 employees offer a retirement plan as an employee benefit, and more than one-third have no current aim to do so. A different 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 found that the most common motivation for employers to look into 401(k) companies and offer a plan was to encourage their employees to set money aside responsibly for retirement. In order to do this effectively for your best employees, it is important to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Columbia, IL.

There are countless advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and stable 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 businesses, and our Columbia, IL 401(k) advisors help determine the preferred 401(k) company and plan for you and your employees. As an independent retirement planning firm, there is no restriction to which 401(k) companies we can connect you to . From offering financial planning education, guiding 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 an indispensable facet of any 401(k) plan.

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Benefits of Offering a 401(k) Plan | Columbia, IL 401(k) Companies

The advantages of offering retirement planning to employees through 401(k) companies are clear. Thirty-nine percent of employers who did not offer 401(k) plans said that their company was not generating enough revenue. But there are countless reasons why implementing a 401(k) plan for your employees might wind up being best for your bottom line. The 401(k) advisors at Correct Capital will compile an all-inclusive guide to the many benefits certain programs will have for you. Among them are:

Recruiting and Retaining Talent | Columbia, IL 401(k) Companies

We're going through the Great Resignation; a recent survey discovered that 55% of Americans anticipated looking for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer offers a 401(k) plan. What better way to hold on to your hardest working employees than letting them know you care about their financial well-being, even after they are no longer working for you?

Motivating Employees | Columbia, IL 401(k) Companies

Many Columbia, IL companies give higher contributions when their employees meet particular performance goals. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to continue their production.

Plan Startup Tax Credits | Columbia, IL 401(k) Companies

Small and medium companies are able to obtain a tax credit for plan startup expenses if they fulfill three requirements stipulated by the IRS:

  1. You had less than 100 workers who were paid a minimum of $5,000 in compensation from you the preceding year.
  2. You had at least one plan participant who was a non-highly compensated employee.
  3. Your company 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 another tax credit for attaching an automatic enrollment feature to a new or extant 401(k) plan.

Further Tax Benefits

Apart from the startup tax credit, the IRS offers two extra tax benefits for sponsoring a 401(k) program:

  1. Employer contributions are tax-deductible to the extent that the contributions do not surpass the limits dictated by Section 404 of the Internal Revenue Code.
  2. 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 Columbia, IL businesses. We'll work to lower your tax liability as part of our 401(k) services.

Employee Education

One of the aspects that sets Correct Capital apart from other 401(k) advisors in Columbia, IL is that we offer financial planning as a perk to your participating employees. With group education gatherings, we'll ensure your employees understand the best investment options for themselves, understand how your 401(k) plan functions, and appreciate how it's serving them. We can also use one-on-one sessions to discuss financial portfolio and asset management with individual staff. When you hire a new employee that had a 401(k) plan with their prior company, we can offer assistance with their 401(k) rollover.

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Types of 401(k) Plans | Columbia, IL 401(k) Companies

The Columbia, IL 401(k) consultants at Correct Capital can help your companies set up many 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 wide array of investment options. Employers are able to equal 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, with the exception 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 funds out after preserving the account for 5 years and they are 59-½ years old or older.
  • SIMPLE 401(k) Plans: These plans are specifically for small businesses who need a cost-efficient way to offer their workers retirement benefits. Like a traditional 401(k) plan, you may take money out of 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 analogous to regular 401(k)s, except that they must include employer contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its annual nondiscrimination tests.

In our initial meeting, we'll get to know your Columbia, IL business and your employee's retirement needs to find the best type of 401(k) plan for you.

Other services we offer in Columbia, IL include:

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The Correct Capital Difference | Columbia, IL 401(k) Companies

Correct Capital stands out among Columbia, IL 401(k) advisors because we offer the degree of personalized attention as smaller advisory firms, but combine it with the same knowledge, accomplishment, and connections as larger firms. We offer independent and objective guidance, always intended to do 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 connect companies to 401(k) companies for over 25 years and at present we represent over $230 million in total plan assets nationwide. Call us at 314-930-401(k) or contact us online to talk over your 401(k) needs today.

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