401(k) Companies in Des Peres, MO
401(k) Companies in Des Peres, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a wonderful way for medium and small companies in Des Peres, MO to draw and hold onto employees, encourage great production, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting businesses with secure 401(k) companies in Des Peres, MO for more than two decades. Call us today at 877-930-4015 or contact us online to find out more about what Correct Capital can do for your Des Peres, MO 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 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 50% of all employers in the United States with less than 50 employees offer a retirement plan to their employees, and more than a third have no present plans to do so. A different study found that a 401(k) plan is the only vehicle many Americans have for saving for retirement.
The J.P. Morgan survey found that the most frequent reason for employers to inquire about 401(k) companies and provide a plan was to incentivize their employees to put money aside responsibly for retirement. In order to do this effectively for your best employees, it is critical to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Des Peres, MO.
There are various benefits to using 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 work for your needs and individual situation. Certain plans are more appropriate for certain employers, and our Des Peres, MO 401(k) advisors help determine the preferred 401(k) company and plan for you and your employees. As an independent advisory firm, there is no restriction to which 401(k) companies we can work with . From offering investment education, guiding individual employees on retirement planning, and helping you maneuver how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a vital part of any 401(k) plan.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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Benefits of Offering a 401(k) Plan | Des Peres, MO 401(k) Companies
The advantages of providing 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 company was not bringing in sufficient earnings. But there are countless reasons why implementing a 401(k) plan for your employees could end up being best for your bottom line. The 401(k) consultants at Correct Capital will put together an all-inclusive guide to the myriad advantages certain plans will have for you. Among them are:
Attracting and Retaining Talent | Des Peres, MO 401(k) Companies
We're in the middle of 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 offers a 401(k) plan. What better way to hold on to your hardest working employees than letting them know their financial well-being matters to you, even after they've moved on?
Motivating Employees | Des Peres, MO 401(k) Companies
Many Des Peres, MO businesses offer increased contributions when their employees reqach specific performance goals. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an effective way to keep your employees' motivation high and to continue their production.
Plan Startup Tax Credits | Des Peres, MO 401(k) Companies
Small and medium companies can collect a tax credit for plan startup expenses if they fulfill three requirements stipulated by the IRS:
- You had under 100 workers who were paid a minimum of $5,000 in compensation from you the preceding year.
- You had at least one plan participant who was a non-highly compensated employee.
- Your company 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 a maximum of three years, and there is a further 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 having a 401(k) program:
- 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 posses tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to Des Peres, MO businesses. We'll strive 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) consultants in Des Peres, MO is that we offer financial planning as a perk to your participating staff. With group education meetings, we'll ensure your employees understand the ideal investment opportunities for themselves, are aware of how your 401(k) program functions, and recognize 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 a new employer joins your team and they had a 401(k) plan with their prior company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Des Peres, MO 401(k) Companies
The Des Peres, MO 401(k) advisors at Correct Capital can help your companies implement many different plans through a variety of different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes a range of investment options. Employers are able to equal their employees' contributions. Taxes are taken out when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, except that contributions are made with after-tax dollars. Income made 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 exist specifically for small businesses looking for a cost-efficient way to offer their employees retirement benefits. Similar to a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. However, the employer must make either:
- An equal contribution of no more than 3% of an employee's pay; or
- A non-elective contribution of 2% of an employee's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, but they must include employer contributions that are fully vested when made. In exchange for for required contributions, the IRS does not conduct its annual nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Des Peres, MO business and your employee's retirement needs to find the best type of 401(k) plan for you.
Other services we offer in Des Peres, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | Des Peres, MO 401(k) Companies
Correct Capital is distinctive among Des Peres, MO 401(k) advisors because we provide the degree of individualized care as smaller advisory firms, but pair it with the same savvy, accomplishment, and partnerships as larger firms. We provide independent and objective advice, always intended to do what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and moral duty to do so. Our retirement consultants have been trusted to connect 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 877-930-4015 or contact us online to discuss your 401(k) needs today.
