401(k) Companies in Columbia, IL
401(k) Companies in Columbia, IL. Establishing a 401(k) plan with trustworthy 401(k) advisors is a wonderful way for small and mid-sized companies in Columbia, IL to draw and retain employees, encourage great work, and receive those much-needed tax breaks. Correct Capital Wealth Management has been introducing companies to dependable 401(k) companies in Columbia, IL for over two decades. Call us today at 877-930-4015 or contact us online to learn more about how Correct Capital can help your Columbia, IL business and your employees succeed.
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 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 employers in the United States with less than 50 employees provide a retirement plan to their employees, and more than a third have no present intentions to do so. An additional study found that a 401(k) plan is the only vehicle many Americans have for setting money aside for retirement.
The J.P. Morgan survey reported that the most frequent reason for employers to explore 401(k) companies and offer a plan was to encourage their employees to put money aside conscientiously for retirement. In order to do this successfully for your prized employees, it is important to consult a trusted, independent retirement planning advisory firm like Correct Capital based in Columbia, IL.
There are countless benefits to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and safe 401(k) companies to offer you and your employees the retirement solutions that work for your needs and individual situation. Certain plans work better for certain businesses, and our Columbia, IL 401(k) advisors help determine the best 401(k) company and plan for you and your employees. As independent advisors, there is no restriction to which 401(k) companies we can work with . From offering financial planning education, advising individual employees on retirement planning, and helping you understand how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an invaluable facet of any 401(k) plan.
Benefits of Offering a 401(k) Plan | Columbia, IL 401(k) Companies
The advantages of providing retirement planning to workers through 401(k) companies are obvious. Almost 40% of employers who did not offer 401(k) plans gave their reason as being that their business was not bringing in sufficient profit. But there are numerous 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 compile an extensive guide to the myriad advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Columbia, IL 401(k) Companies
We're enduring the Great Resignation; a recent survey discovered that 55% of Americans anticipated searching for a new job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer provides a defined contribution plan. What better way to hang on to your best employees than assuring them that you care about their financial health, even after they are no longer working for you?
Incentivizing Employees | Columbia, IL 401(k) Companies
Many Columbia, IL businesses offer greater contributions when their employees achieve specific performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be a successful way to keep your best employees motivated to maintain 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 satisfy three requirements stipulated by the IRS:
- You had 100 or fewer staff who were paid a minimum of $5,000 in compensation from you the year prior.
- You had at least one plan participant who was a non-highly compensated employee.
- 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 obtainable for a maximum of three years, and there is an additional tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Further Tax Benefits
Apart from the startup tax credit, the IRS offers two additional tax benefits for having a 401(k) program:
- Employer contributions are tax-deductible to the extent that the contributions do not go over the limits dictated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and have the benefit of tax deferral until distribution.
Correct Capital's financial advisors also offer extensive tax planning services to Columbia, IL companies. We'll strive to decrease your tax liability as part of our 401(k) services.
Employee Education
One of the facets that sets Correct Capital apart from other 401(k) consultants in Columbia, IL is that we offer financial planning as a benefit to plan participants. Through group education meetings, we'll make sure your employees know the best investment opportunities for themselves, are aware of how your 401(k) plan works, and see how it's benefiting them. We can also have one-on-one meetings to go through 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 help them with their 401(k) rollover.
Types of 401(k) Plans | Columbia, IL 401(k) Companies
The Columbia, IL 401(k) advisors at Correct Capital can help your companies set up a variety of 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 numerous investment options. Employers are able to 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, with the exception contributions are made with money you have already paid taxes on. Gains obtained in the plan, such as interest, dividends, or capital gains, is tax-free when the individual 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 specifically for small businesses who need a cost-effective way to offer their employees retirement benefits. Similar to a traditional 401(k) plan, you can take money out of an employee's paycheck as their contribution. But, the employer must make either:
- An equal contribution of no more than 3% of a worker's pay; or
- A non-elective contribution of 2% of a staff members pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, except that the employer must make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not conduct its yearly nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Columbia, IL company and your employee's retirement needs to find the ideal type of 401(k) plan for you.
Other services we offer in Columbia, IL 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 | Columbia, IL 401(k) Companies
Correct Capital stands out among Columbia, IL 401(k) advisors because we provide the level of individualized care as smaller advisory firms, but combine it with the same knowledge, experience, and partnerships as larger firms. We offer independent and objective counsel, 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 employers to 401(k) companies for more than 25 years and currently represent over $230 million in total plan assets across the United States. Call us at 877-930-4015 or contact us online to talk over your 401(k) needs today.
