401(k) Companies in Edwardsville, IL
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Edwardsville, IL. Establishing a 401(k) plan with trusted 401(k) advisors is a great way for small and mid-sized businesses in Edwardsville, IL to draw and retain employees, encourage great production, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been introducing businesses to dependable 401(k) companies in Edwardsville, IL for more than 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 Edwardsville, IL 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 capital 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 businesses in the United States with under 50 employees provide a retirement plan as an employee benefit, and more than 33% have no current plans 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 reported that the most common motivation for employers to research 401(k) companies and provide a plan was to incentivize their employees to set money aside conscientiously for retirement. In order to do this effectively for your best employees, it is crucial to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Edwardsville, IL.
There are a great deal of benefits to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to put forward for you and your employees the retirement solutions that work for your needs and specific situation. Certain plans work better for certain companies, and our Edwardsville, IL 401(k) advisors help pick out the best 401(k) company and plan for you and your employees. As an independent advisory firm, there is no restraint to which 401(k) companies we can work with . From offering investment education, advising 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 an invaluable part of any 401(k) plan.
Benefits of Offering a 401(k) Plan | Edwardsville, IL 401(k) Companies
The advantages of providing retirement planning to workers through 401(k) companies are clear. Thirty-nine percent of employers who did not offer 401(k) plans stated that their company was not generating sufficient income. But there are a lot of reasons why setting up a 401(k) plan for your employees might wind up being best for your bottom line. The 401(k) advisors at Correct Capital will compile an all-inclusive guide to the many benefits certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Edwardsville, IL 401(k) Companies
We're enduring the Great Resignation; a recent survey reported that 55% of Americans expected to look for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer provides a 401(k) plan. What better way to keep your hardest working employees than letting them know their financial health is important to you, even after they've left the workforce?
Incentivizing Employees | Edwardsville, IL 401(k) Companies
Many Edwardsville, IL employers offer greater contributions when their employees reqach particular 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 | Edwardsville, IL 401(k) Companies
Small and medium companies are able to get a tax credit for plan startup expenses if they meet three requirements stipulated by the IRS:
- You had 100 or fewer staff who collected at least $5,000 in compensation from you the year prior.
- You had a minimum of one plan participant who was a non-highly compensated employee.
- Your company 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 up to three years, and there is another tax credit for attaching 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 additional tax benefits for sponsoring a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not go over 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.
One of the facets that sets Correct Capital apart from other 401(k) consultants in Edwardsville, IL is that we offer financial planning as a benefit to plan participants. With group education meetings, we'll make sure your employees know the ideal investment options for themselves, know how your 401(k) program functions, and understand 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 old employer, we can help them with their 401(k) rollover.
Types of 401(k) Plans | Edwardsville, IL 401(k) Companies
The Edwardsville, IL 401(k) advisors at Correct Capital can help your business set up several different plans through a variety of different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that offers a wide array of investment options. Employers may 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, other than the fact that contributions are made with after-tax dollars. Gains made in the plan, such as interest, dividends, or capital gains, is tax-free when the employee 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 are specially for small businesses who want a cost-effective way to offer their staff a retirement plan. Like a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. But, 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 a worker's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, other than the fact that they must include employer contributions that are fully vested when made. In return for required contributions, the IRS does not perform its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Edwardsville, IL company and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Edwardsville, IL 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 | Edwardsville, IL 401(k) Companies
Correct Capital stands out among Edwardsville, IL 401(k) advisors because we offer the level of individualized attention as smaller advisory firms, but couple it with the same savvy, accomplishment, and connections as larger firms. We provide independent and objective counsel, always intended to do what's best for you; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to connect businesses to 401(k) companies for over 25 years and presently represent over $230 million in total plan assets nationwide. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.