401(k) Companies in Columbia, IL
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Columbia, IL. Initiating a 401(k) plan with trusted 401(k) advisors is a great way for small and mid-sized companies in Columbia, IL 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 secure 401(k) companies in Columbia, IL 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 Columbia, IL business and employees.
As of 2020, defined-contribution (DC) plans such as 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 businesses in the United States with under 50 employees offer a 401(k) plan to their employees, and over a third have no current aim 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 reported that the most common incentive for employers to explore 401(k) companies and provide a plan was to encourage their employees to put money aside conscientiously for retirement. In order to do this successfully for your best employees, it is crucial to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in Columbia, IL.
There are a great deal of benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to offer you and your employees the retirement solutions that are in your best interests and unique circumstances. Certain plans work better for certain businesses, and our Columbia, IL 401(k) advisors help identify the best 401(k) company and plan for you and your employees. As an independent retirement planning firm, there is no limit to which 401(k) companies we can connect you to . From offering financial planning education, guiding individual employees on retirement planning, and helping you navigate how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an indispensable aspect of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Columbia, IL 401(k) Companies
The advantages of offering retirement planning to staff through 401(k) companies are obvious. Almost 40% of employers who did not offer 401(k) plans said that their reason was that their business was not generating enough profit. But there are many reasons why implementing a 401(k) plan for your employees could end up being best for your bottom line. The 401(k) advisors at Correct Capital will put together an all-inclusive guide to the many benefits certain programs will have for you. Among them are:
Attracting and Retaining Talent | Columbia, IL 401(k) Companies
We're in the middle of the Great Resignation; a recent survey found that 55% of Americans thought they would look for a different 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 favorite employees than letting them know you care about their financial well-being, even after they are no longer working for you?
Incentivizing Employees | Columbia, IL 401(k) Companies
Many Columbia, IL businesses 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 a successful way to keep your employees' motivation high and to keep up their performance.
Plan Startup Tax Credits | Columbia, IL 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 less than 100 employees who received a minimum of $5,000 in compensation from you the year prior.
- You had a minimum of 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 available for up to three years, and there is a different tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.
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 stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and posses tax deferral until distribution.
One of the things that sets Correct Capital apart from other 401(k) advisors in Columbia, IL is that we offer financial planning as a service to your participating employees. With group education meetings, we'll make sure your employees recognize the best investment options for themselves, understand how your 401(k) plan functions, and appreciate how it's helping them. We can also use one-on-one meetings to go through financial portfolio and asset management with individual workers. When you hire a new employee that had a 401(k) plan with their prior company, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | Columbia, IL 401(k) Companies
The Columbia, IL 401(k) consultants at Correct Capital can help your companies implement a variety of different plans through many different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers numerous investment options. Employers can match their employees' contributions. Taxes are paid when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, except that contributions are made with money you have already paid taxes on. 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 59-½ years old or older.
- 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 withhold money from an employee's paycheck as their contribution. However, 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 a worker's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, however the employer is required to make contributions that are fully vested when made. In exchange for for required contributions, the IRS does not conduct its annual nondiscrimination tests.
In our first meeting, we'll get to know your Columbia, IL business and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in Columbia, IL include:
- 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
- Rollover 401(k)
The Correct Capital Difference | Columbia, IL 401(k) Companies
Correct Capital stands out among Columbia, IL 401(k) advisors because we offer the level of individualized attention as smaller financial firms, but combine it with the same savvy, accomplishment, and partnerships as larger firms. We offer independent and objective advice, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to introduce employers to 401(k) companies for more than two decades and presently 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.