401(k) Companies in Cottleville, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Cottleville, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a wonderful way for small and mid-sized businesses in Cottleville, MO to attract and retain employees, incentivize great performance, and receive those much-desired tax breaks. Correct Capital Wealth Management has been introducing companies to secure 401(k) companies in Cottleville, MO for over 20 years. Call us today at 314-930-401(k) or contact us online to learn more about what Correct Capital can do for your Cottleville, MO 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 capital 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 offer a 401(k) plan as an employee benefit, and more than a third have no current intentions to do so. A different study found that a 401(k) plan is the only vehicle many Americans have for putting money aside for retirement.
The J.P. Morgan survey stated that the most common reason for employers to look into 401(k) companies and provide a plan was to incentivize their employees to put money aside conscientiously for retirement. In order to do this fruitfully for your best employees, it is important to consult a trusted, independent retirement planning advisory firm like Correct Capital based in Cottleville, MO.
There are numerous benefits to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to bring you and your employees the retirement solutions that serve your needs and individual situation. Specific plans are more appropriate for certain employers, and our Cottleville, MO 401(k) advisors help pick out the preferred 401(k) company and plan for you and your employees. As independent retirement consultants, there is no limit 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 execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a vital aspect of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Cottleville, MO 401(k) Companies
The advantages of providing retirement planning to staff through 401(k) companies are clear. Almost 40% of employers who did not offer 401(k) plans gave their reason as being 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 compile an extensive guide to the many benefits certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Cottleville, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey discovered that 55% of Americans thought they would search for a different job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer provides a 401(k) plan. What better way to retain your best employees than letting them know their financial health matters to you, even after they've moved on?
Incentivizing Employees | Cottleville, MO 401(k) Companies
Many Cottleville, MO companies give higher contributions when their employees meet certain performance goals. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your best employees motivated to keep up their production.
Plan Startup Tax Credits | Cottleville, MO 401(k) Companies
Small and medium companies can collect a tax credit for plan startup expenses if they meet three requirements dictated by the IRS:
- You had under 100 employees who collected a minimum of $5,000 in compensation from you the previous year.
- 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 further tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Further Tax Advantages
Other than the startup tax credit, the IRS offers two further tax benefits for sponsoring a 401(k) program:
- 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.
- Elective deferrals and investment gains are not taxed and benefit from tax deferral until distribution.
Correct Capital's financial advisors also offer comprehensive tax planning services to Cottleville, MO residents and employers. We'll strive to decrease your tax liability as part of our 401(k) services.
One of the aspects that sets Correct Capital apart from other 401(k) advisors in Cottleville, MO is that we offer financial planning as a service to plan participants. With group education gatherings, we'll ensure your employees know the best investment options for themselves, are aware of how your 401(k) plan works, and see how it's serving them. We can also have one-on-one sessions to talk over financial portfolio and asset management with individual workers. When a new employer joins your team and they 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 companies initiate a variety of different plans through a variety of different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that offers a wide array of investment options. Employers are able to 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 money you have already paid taxes on. Income obtained in the plan, such as interest, dividends, or capital gains, is tax-free when the individual takes funds out after maintaining the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans exist specially for small businesses who want a cost-efficient way to offer their staff retirement benefits. Like a traditional 401(k) plan, you can take money out of an employee's paycheck as their contribution. However, the employer must make either:
- A matching contribution of up to 3% of an employee's earnings; or
- A non-elective contribution of 2% of a worker's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, with the exception 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 yearly nondiscrimination tests.
When we first meet with you, we'll get to know your Cottleville, MO company and your employee's retirement needs to find the ideal type of 401(k) plan for you.
Other services we offer in Cottleville, MO include:
- Fiduciary Financial Advisor
- 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
The Correct Capital Difference | Cottleville, MO 401(k) Companies
Correct Capital stands out among Cottleville, MO 401(k) advisors because we provide the level of individualized care as smaller financial firms, but pair it with the same knowledge, professionalism, and connections as larger firms. We offer independent and objective advice, always intended to do what's best for you; as an Accredited Investment Fiduciary®, it's our legal and ethical responsibility to do so. Our retirement consultants have been trusted to introduce employers to 401(k) companies for over 25 years and at present we represent over $230 million in total plan assets across the United States. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.