401(k) Companies in Edwardsville, IL
401(k) Companies in Edwardsville, IL. Initiating a 401(k) plan with trusted 401(k) advisors is an excellent way for medium and small businesses in Edwardsville, IL to appeal to and hold onto employees, incentivize great work, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting businesses with secure 401(k) companies in Edwardsville, IL for more than 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 Edwardsville, IL business and employees.
As of 2020, defined-contribution (DC) plans like 401(k)s comprise $9.9 trillion of the total $32.3 trillion in retirement plan assets held in the United States, according to 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 to their employees, and over one-third have no current plans to do so. Another study found that a 401(k) plan is the only vehicle many Americans have for saving for retirement.
The J.P. Morgan survey reported that the most frequent motive for employers to look into 401(k) companies and provide a plan was to incentivize their employees to set money aside responsibly for retirement. In order to do this effectively for your prized employees, it is crucial to reach out to a trusted, independent retirement planning advisory firm like Correct Capital based in Edwardsville, IL.
There are a great deal of advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and stable 401(k) companies to put forward for you and your employees the retirement solutions that serve your best interests and specific circumstances. Specific plans work better for certain businesses, and our Edwardsville, IL 401(k) advisors help determine 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, counseling individual employees on retirement planning, and assisting you maneuver how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a vital facet of any 401(k) program.
Benefits of Offering a 401(k) Plan | Edwardsville, IL 401(k) Companies
The benefits of providing retirement planning to staff through 401(k) companies are clear. Almost 40% of employers who did not offer 401(k) plans said that their company was not generating sufficient profit. But there are many reasons why setting up 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 all-inclusive guide to the many benefits certain programs will have for you. Among them are:
Attracting and Retaining Talent | Edwardsville, IL 401(k) Companies
We're in the middle of the Great Resignation; a recent survey stated that 55% of Americans anticipated looking for a new job in 2021 and 2022. Workers feel 45% more assured about their retirement when their employer provides a defined contribution plan. What better way to keep your hardest working employees than letting them know their financial health matters to you, even after they are no longer working for you?
Motivating Employees | Edwardsville, IL 401(k) Companies
Many Edwardsville, IL companies give higher contributions when their employees accomplish specific performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your best employees motivated to maintain their production.
Plan Startup Tax Credits | Edwardsville, IL 401(k) Companies
Small and medium companies are able to collect a tax credit for plan startup expenses if they satisfy three requirements dictated by the IRS:
- You had 100 or fewer staff who were paid at least $5,000 in compensation from you the year prior.
- You had at least one plan participant who was a non-highly compensated employee.
- Your business did not already have a retirement plan benefiting 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 an additional tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.
Further Tax Benefits
Besides the startup tax credit, the IRS offers two additional tax benefits for implementing a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not go over the limits set out in Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
Correct Capital's financial advisors also offer extensive tax planning services to Edwardsville, IL companies. We'll strive to reduce your tax liability as part of our 401(k) services.
Employee Education
One of the facets that makes Correct Capital different from other 401(k) advisors in Edwardsville, IL is that we offer financial planning as a benefit to your participating employees. 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 see how it's helping them. We can also use one-on-one sessions to discuss financial portfolio and asset management with individual employees. When you hire a new employee that had a 401(k) plan with their old company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Edwardsville, IL 401(k) Companies
The Edwardsville, IL 401(k) consultants at Correct Capital can help your business implement several 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 program that includes a wide array of investment options. Employers can equal their employees' contributions. Taxes are deducted when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, with the exception contributions are made with after-tax dollars. Gains earned in the plan, such as interest, dividends, or capital gains, is tax-free when the employee withdraws money after maintaining 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 looking for a cost-efficient way to offer their employees a retirement plan. 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:
- A matching contribution of no more than 3% of a worker's earnings; or
- A non-elective contribution of 2% of a staff members pay.
- 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 exchange for for required contributions, the IRS does not perform its annual nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Edwardsville, IL business and your employee's retirement needs to find the best type of 401(k) plan for you.
Other services we offer in Edwardsville, IL include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
The Correct Capital Difference | Edwardsville, IL 401(k) Companies
Correct Capital stands out among Edwardsville, IL 401(k) advisors because we provide the degree of individualized attention as smaller financial firms, but couple it with the same wisdom, professionalism, and partnerships 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 moral obligation to do so. Our retirement consultants have been trusted to connect companies to 401(k) companies for more than two decades and at present we represent over $230 million in total plan assets nationwide. Call us at 877-930-4015 or contact us online to talk over your 401(k) needs today.
