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 dependable 401(k) advisors is a wonderful way for medium and small businesses in Edwardsville, IL to attract and retain employees, encourage great performance, and get those much-needed tax breaks. Correct Capital Wealth Management has been connecting companies with secure 401(k) companies in Edwardsville, IL for more than 20 years. Call us today at 314-930-401(k) or contact us online to find out more about how Correct Capital can help your Edwardsville, IL business and your employees thrive.
As of 2020, defined-contribution (DC) plans such as 401(k)s made up $9.9 trillion of the total $32.3 trillion in retirement plan capital 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 businesses in the United States with under 50 employees provide a retirement plan to their employees, and more than one-third have no present plans to do so. A further study found that a 401(k) plan is the only instrument many Americans have for putting money aside for retirement.
The J.P. Morgan survey reported that the most frequent motivation for employers to inquire about 401(k) companies and offer a plan was to incentivize their employees to save conscientiously for retirement. In order to do this successfully for your valued employees, it is important to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Edwardsville, IL.
There are countless advantages to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and stable 401(k) companies to bring you and your employees the retirement solutions that are in your best interests and individual circumstances. Specific plans work better for certain employers, and our Edwardsville, IL 401(k) advisors help locate 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 connect you to . From offering investment education, guiding individual employees on retirement planning, and helping you navigate how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a vital aspect of any 401(k) program.
Benefits of Offering a 401(k) Plan | Edwardsville, IL 401(k) Companies
The advantages of offering retirement planning to employees through 401(k) companies are apparent. Thirty-nine percent of employers who did not offer 401(k) plans said that their reason was that their business was not bringing in enough earnings. 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) consultants at Correct Capital will put together an extensive guide to the many advantages certain programs will have for you. Among them are:
Attracting and Retaining Talent | Edwardsville, IL 401(k) Companies
We're living through the Great Resignation; a recent survey found that 55% of Americans thought they would look for a new job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer offers a defined contribution plan. What better way to hang on to your hardest working employees than assuring them that you care about their financial security, even after they are no longer working for you?
Incentivizing Employees | Edwardsville, IL 401(k) Companies
Many Edwardsville, IL companies give increased contributions when their employees accomplish certain 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 keep up their performance.
Plan Startup Tax Credits | Edwardsville, IL 401(k) Companies
Small and medium companies can obtain a tax credit for plan startup costs if they fulfill three requirements stipulated by the IRS:
- You had less than 100 employees who received 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 accessible for up to three years, and there is an additional tax credit for adding an automatic enrollment feature to a new or extant 401(k) plan.
Further Tax Benefits
In addition to the startup tax credit, the IRS offers two other tax benefits for sponsoring a 401(k) program:
- Employer contributions are tax-deductible to the extent that the contributions do not surpass the limits dictated 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 things that makes Correct Capital different from other 401(k) advisors in Edwardsville, IL is that we offer financial planning as a service to plan participants. Through group education meetings, we'll ensure your employees understand the ideal investment options for themselves, know how your 401(k) program works, and see how it's helping them. We can also have one-on-one meetings to talk over financial portfolio and asset management with individual workers. When you hire a new employee that had a 401(k) plan with their previous employer, 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 companies implement a variety of 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 taken out when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same traditional plans, but contributions are made with after-tax dollars. Income made in the plan, such as interest, dividends, or capital gains, is tax-free when the employee withdraws funds after preserving the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans exist specially for small businesses looking for a cost-effective way to offer their employees a retirement plan. Like a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. However, the employer must make either:
- A matching contribution of up to 3% of an employee's pay; or
- A non-elective contribution of 2% of a worker's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, but the employer is required to make contributions that are fully vested when made. In return for required contributions, the IRS does not conduct its annual nondiscrimination tests.
In our initial meeting, we'll get to know your Edwardsville, IL business and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in Edwardsville, IL include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Edwardsville, IL 401(k) Companies
Correct Capital stands out among Edwardsville, IL 401(k) advisors because we provide the level of personalized attention as smaller financial firms, but couple it with the same wisdom, experience, and partnerships as larger firms. We offer independent and objective counsel, always with your best interest in mind; 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 more than 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 discuss your 401(k) needs today.