401(k) Companies in Des Peres, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Des Peres, MO. Setting up a 401(k) plan with dependable 401(k) advisors is an excellent way for medium and small companies in Des Peres, MO to draw and hold onto employees, encourage great work, and get those much-needed tax breaks. Correct Capital Wealth Management has been introducing companies to trusted 401(k) companies in Des Peres, MO for more than two decades. Call us today at 314-930-401(k) or contact us online to learn 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 accounted for $9.9 trillion of the total $32.3 trillion in retirement plan assets 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 under 50 employees offer a 401(k) plan to their employees, and more than one-third have no present intentions to do so. An additional study found that a 401(k) plan is the only instrument many Americans have for setting money aside for retirement.
The J.P. Morgan survey found that the most common motivation for employers to explore 401(k) companies and offer a plan was to encourage their employees to set 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 Des Peres, MO.
There are numerous advantages to using Correct Capital's 401(k) services. Correct Capital partners with many dependable and safe 401(k) companies to put forward for you and your employees the retirement solutions that work for your needs and individual circumstances. Specific plans work better for certain businesses, and our Des Peres, MO 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 connect you to . From offering financial planning education, guiding individual employees on retirement planning, and assisting you navigate how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a crucial part of any 401(k) plan.
Advantages 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 evident. 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 numerous reasons why initiating a 401(k) plan for your employees might be best for your bottom line down the road. The 401(k) advisors at Correct Capital will put together an extensive guide to the various advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Des Peres, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey found that 55% of Americans thought they would 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 hardest working employees than letting them know you care about their financial health, even after they've moved on?
Incentivizing Employees | Des Peres, MO 401(k) Companies
Many Des Peres, MO employers give higher contributions when their employees meet certain 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 | Des Peres, MO 401(k) Companies
Small and medium companies are able to obtain a tax credit for plan startup costs if they meet three requirements stipulated by the IRS:
- You had 100 or fewer staff who collected a minimum of $5,000 in compensation from you the year prior.
- 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 obtainable for up to three years, and there is a further tax credit for adding an automatic enrollment feature to a new or existing 401(k) plan.
Additional Tax Advantages
In addition to the startup tax credit, the IRS offers two further tax benefits for having a 401(k) program:
- 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 benefit from tax deferral until distribution.
One of the things that sets Correct Capital apart from other 401(k) consultants in Des Peres, MO is that we offer financial planning as a perk to plan participants. Through group education gatherings, we'll make certain your employees recognize the ideal investment opportunities for themselves, know how your 401(k) plan functions, and understand how it's benefiting them. We can also use one-on-one meetings to discuss 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 set up several different plans through several 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 can equal their employees' contributions. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, other than the fact 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 money after continuing the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are in place specifically for small businesses who need a cost-effective way to offer their employees 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:
- An equal contribution of up to 3% of an employee's earnings; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, but the employer is required to make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not conduct its annual nondiscrimination tests.
In our initial meeting, we'll get to know your Des Peres, MO company and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in Des Peres, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Des Peres, MO 401(k) Companies
Correct Capital is unique among Des Peres, MO 401(k) advisors because we offer the degree of personalized attention as smaller advisory firms, but couple it with the same knowledge, professionalism, and partnerships as larger firms. We offer independent and objective guidance, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and moral obligation to do so. Our retirement consultants have been trusted to connect businesses to 401(k) companies for more than 25 years and at present we represent over $230 million in total plan assets throughout the United States. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.