401(k) Companies in Ellisville, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Ellisville, MO. Establishing a 401(k) plan with trustworthy 401(k) advisors is a great way for small and mid-sized businesses in Ellisville, MO to attract and retain employees, encourage great production, and receive those much-desired tax breaks. Correct Capital Wealth Management has been introducing employers to trusted 401(k) companies in Ellisville, MO for over two decades. Call us today at 314-930-401(k) or contact us online to learn more about how Correct Capital can help your Ellisville, MO business and your employees prosper.
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, as reported by the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than 50% of all employers in the United States with less than 50 employees provide a retirement plan as an employee benefit, and more than a third have no present plans to do so. A different study found that a 401(k) plan is the only instrument many Americans have for saving for retirement.
The J.P. Morgan survey stated that the most common incentive for employers to research 401(k) companies and provide a plan was to encourage their employees to save responsibly for retirement. In order to do this successfully for your best employees, it is critical to reach out to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Ellisville, MO.
There are a great deal of benefits to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and safe 401(k) companies to bring you and your employees the retirement solutions that serve your best interests and unique situation. Specific plans work better for certain companies, and our Ellisville, MO 401(k) advisors help pick out the preferred 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 understand how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a vital part of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Ellisville, MO 401(k) Companies
The benefits of offering retirement planning to staff through 401(k) companies are apparent. Almost 40% of employers who did not offer 401(k) plans said that their business was not generating enough earnings. But there are countless reasons why initiating a 401(k) plan for your employees may be best for your bottom line down the road. The 401(k) consultants at Correct Capital will put together a comprehensive guide to the various advantages certain plans will have for you. Among them are:
Attracting and Retaining Talent | Ellisville, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey stated that 55% of Americans anticipated searching for a different job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer has a defined contribution plan. What better way to hang on to your hardest working employees than letting them know you care about their financial well-being, even after they've moved on?
Incentivizing Employees | Ellisville, MO 401(k) Companies
Many Ellisville, MO businesses give increased contributions when specific performance goals are met. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be a successful way to keep your employees' motivation high and to keep up their production.
Plan Startup Tax Credits | Ellisville, MO 401(k) Companies
Small and medium companies can collect a tax credit for plan startup expenses if they fulfill three requirements laid out by the IRS:
- You had 100 or fewer staff who received at least $5,000 in compensation from you the previous year.
- You had at least 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 benefited 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 401(k) plan or one you already had.
Further Tax Benefits
Besides the startup tax credit, the IRS offers two extra tax benefits for implementing a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not exceed the limits dictated 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 aspects that makes Correct Capital different from other 401(k) consultants in Ellisville, MO is that we offer financial planning as a perk to your participating staff. Through group education gatherings, we'll make sure your employees know the best investment options for themselves, understand how your 401(k) plan works, and see how it's serving them. We can also have one-on-one sessions to go through financial portfolio and asset management with individual staff. 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 | Ellisville, MO 401(k) Companies
The Ellisville, MO 401(k) advisors at Correct Capital can help your companies implement several different plans through many different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes a wide array of investment options. Employers may match their employees' contributions. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, however contributions are made with money you have already paid taxes on. Gains earned in the plan, such as interest, dividends, or capital gains, is tax-free when the employee takes money out after preserving the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are specially for small businesses who need a cost-effective way to offer their staff retirement benefits. Similar to a traditional 401(k) plan, you can take money out of an employee's paycheck as their contribution. However, the employer must make either:
- A matching contribution of no more than 3% of an employee's pay; 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, but the employer must make contributions that are fully vested when made. In exchange for for required contributions, the IRS does not carry out its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Ellisville, MO business and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Ellisville, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Ellisville, MO 401(k) Companies
Correct Capital is distinctive among Ellisville, MO 401(k) advisors because we offer the level of individualized care as smaller financial firms, but pair it with the same savvy, professionalism, and partnerships as larger firms. We provide independent and objective advice, always intended to do what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and ethical obligation to do so. Our retirement consultants have been trusted to connect employers 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 314-930-401(k) or contact us online to discuss your 401(k) needs today.