401(k) Companies in Cottleville, MO
401(k) Companies in Cottleville, MO. Establishing a 401(k) plan with trustworthy 401(k) advisors is an excellent way for medium and small companies in Cottleville, MO to attract and retain employees, encourage great work, and obtain those much-desired tax breaks. Correct Capital Wealth Management has been connecting businesses with secure 401(k) companies in Cottleville, MO for over 20 years. Call us today at 877-930-4015 or contact us online to find out more about what Correct Capital can do for your Cottleville, MO business and employees.
As of 2020, defined-contribution (DC) plans like 401(k)s constitute $9.9 trillion of the total $32.3 trillion in retirement plan capital held in the United States, according to data from 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 less than 50 employees offer a retirement plan as an employee benefit, and over 33% have no present aim to do so. A different 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 stated that the most common motivation for employers to look into 401(k) companies and offer a plan was to encourage their employees to save responsibly for retirement. In order to do this effectively for your valued employees, it is crucial to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in Cottleville, MO.
There are countless benefits to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and stable 401(k) companies to bring you and your employees the retirement solutions that are in your best interests and specific situation. Certain plans work better for certain businesses, and our Cottleville, MO 401(k) advisors help recognize the preferred 401(k) company and plan for you and your employees. As independent advisors, there is no restraint to which 401(k) companies we can work with . From offering financial planning education, counseling individual employees on retirement planning, and assisting you maneuver how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a crucial facet of any 401(k) plan.
Benefits of Offering a 401(k) Plan | Cottleville, MO 401(k) Companies
The advantages of offering retirement planning to workers through 401(k) companies are obvious. Thirty-nine percent of employers who did not offer 401(k) plans stated that their company was not bringing in sufficient profit. But there are a lot of reasons why initiating a 401(k) plan for your employees might wind up being best for your bottom line. The 401(k) consultants at Correct Capital will put together an all-inclusive guide to the various benefits certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Cottleville, MO 401(k) Companies
We're going through the Great Resignation; a recent survey stated that 55% of Americans anticipated searching for a new job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer provides a defined contribution plan. What better way to hang on to your best employees than letting them know you care about their financial security, even after they are no longer working for you?
Incentivizing Employees | Cottleville, MO 401(k) Companies
Many Cottleville, MO companies offer increased contributions when particular performance goals are met. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an effective way to keep your best employees motivated to maintain their production.
Plan Startup Tax Credits | Cottleville, MO 401(k) Companies
Small and medium companies are able to receive a tax credit for plan startup costs if they fulfill three requirements laid out by the IRS:
- You had less than 100 employees who were paid at least $5,000 in compensation from you the preceding year.
- You had at least one plan participant who was a non-highly compensated employee.
- In the three years prior, you did not already have a retirement plan in place that benefited substantially the same employees.
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 or existing 401(k) plan.
Further Tax Benefits
In addition to the startup tax credit, the IRS offers two other tax benefits for implementing 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 have the benefit of tax deferral until distribution.
Correct Capital's financial advisors also offer extensive tax planning services to Cottleville, MO businesses. We'll strive to reduce your tax liability as part of our 401(k) services.
Employee Education
One of the things that sets Correct Capital apart from other 401(k) consultants in Cottleville, MO is that we offer financial planning as a perk to plan participants. With group education gatherings, we'll ensure your employees recognize the best investment options for themselves, know how your 401(k) program functions, and appreciate how it's helping them. We can also use one-on-one meetings to talk over financial portfolio and asset management with individual staff. When you hire a new employee that had a 401(k) plan with their old employer, we can help them with their 401(k) rollover.
Types of 401(k) Plans | Cottleville, MO 401(k) Companies
The Cottleville, MO 401(k) consultants at Correct Capital can help your business implement a variety of different plans through several different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that offers a wide array of 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 similar to traditional plans, but contributions are made with after-tax dollars. Gains made in the plan, such as interest, dividends, or capital gains, is tax-free when the individual withdraws funds after preserving the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans exist specially for small businesses looking for a cost-efficient way to offer their workers a retirement plan. Similar to 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 no more than 3% of an employee's pay; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, however the employer is required to make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not perform its yearly nondiscrimination tests.
When we first meet with you, we'll get to know your Cottleville, MO business and your employee's retirement needs to identify the ideal type of 401(k) plan for you.
Other services we offer in Cottleville, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | Cottleville, MO 401(k) Companies
Correct Capital stands out among Cottleville, MO 401(k) advisors because we provide the degree of individualized care as smaller advisory firms, but pair it with the same wisdom, 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 moral responsibility to do so. Our retirement consultants have been trusted to introduce businesses to 401(k) companies for more than 25 years and presently represent over $230 million in total plan assets across the United States. Call us at 877-930-4015 or contact us online to discuss your 401(k) needs today.
