401(k) Companies in Des Peres, MO
401(k) Companies in Des Peres, MO. Establishing a 401(k) plan with trustworthy 401(k) advisors is a wonderful way for small and mid-sized companies in Des Peres, MO to appeal to and retain employees, encourage great performance, and get those much-needed tax breaks. Correct Capital Wealth Management has been connecting companies with dependable 401(k) companies in Des Peres, MO for more than 20 years. Call us today at 314-930-401(k) 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 half of all businesses in the United States with under 50 employees provide a 401(k) plan to their employees, and more than 33% have no present intentions to do so. A different 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 stated that the most common incentive for employers to research 401(k) companies and offer a plan was to incentivize their employees to set money aside conscientiously for retirement. In order to do this effectively for your prized employees, it is important to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Des Peres, MO.
There are various advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and safe 401(k) companies to bring you and your employees the retirement solutions that serve your best interests and specific situation. Certain plans are more appropriate for certain companies, and our Des Peres, MO 401(k) advisors help recognize the best 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 helping you maneuver how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an invaluable aspect of any 401(k) plan.
Benefits of Offering a 401(k) Plan | Des Peres, MO 401(k) Companies
The advantages of providing retirement planning to employees through 401(k) companies are obvious. Almost 40% of employers who did not offer 401(k) plans gave their reason as being that their company was not generating enough revenue. But there are many reasons why setting up a 401(k) plan for your employees may wind up being best for your bottom line. The 401(k) advisors at Correct Capital will put together an extensive guide to the various benefits certain programs 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 expected to look for a different job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer provides a 401(k) plan. What better way to retain your favorite employees than assuring them that you care about their financial health, even after they've left the workforce?
Incentivizing Employees | Des Peres, MO 401(k) Companies
Many Des Peres, MO employers give higher contributions when specific performance goals are met. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an excellent 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 are able to get a tax credit for plan startup expenses if they meet three requirements laid out by the IRS:
- You had 100 or fewer employees who collected at least $5,000 in compensation from you the previous year.
- You had a minimum of one plan participant who was a non-highly compensated employee.
- In the three preceding years, you did not already have a retirement plan in place that covered substantially the same employees.
The tax credit is available for up to three years, and there is an additional tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.
Additional Tax Advantages
Other than the startup tax credit, the IRS offers two additional tax benefits for having a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not surpass the limits stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and have the advantage of tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to Des Peres, MO companies. We'll strive to reduce your tax liability as part of our 401(k) services.
Employee Education
One of the features that sets Correct Capital apart from other 401(k) advisors in Des Peres, MO is that we offer financial planning as a service to your participating staff. With group education meetings, we'll make certain your employees know the ideal investment opportunities for themselves, understand how your 401(k) program works, and recognize how it's serving them. We can also have 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 prior employer, 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 many different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers a range of investment options. Employers are able to equal what their employees put in. Taxes are paid when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same traditional plans, however contributions are made with after-tax dollars. Income earned in the plan, such as interest, dividends, or capital gains, is tax-free when the individual takes money out after continuing 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 staff retirement benefits. Like a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. However, the employer must make either:
- A matching contribution of no more than 3% of a staff members pay; or
- A non-elective contribution of 2% of an employee's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous 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 perform its yearly nondiscrimination tests.
In our first meeting, we'll gain an understanding of your Des Peres, MO business and your employee's retirement needs to identify the ideal 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
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
- Social Security Consultants Near Me
The Correct Capital Difference | Des Peres, MO 401(k) Companies
Correct Capital is distinctive among Des Peres, MO 401(k) advisors because we offer the degree of individualized care as smaller advisory firms, but couple it with the same wisdom, experience, and connections 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 duty to do so. Our retirement consultants have been trusted to introduce businesses to 401(k) companies for over two decades and currently 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.
