401(k) Companies in Ellisville, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Ellisville, MO. Initiating 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 hold onto employees, encourage great performance, and get those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with secure 401(k) companies in Ellisville, MO for over 20 years. 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 flourish.
As of 2020, defined-contribution (DC) plans such as 401(k)s constitute $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 under 50 employees offer a retirement plan to their employees, and more than 33% have no current aim to do so. An additional study found that a 401(k) plan is the only vehicle many Americans have for putting money aside for retirement.
The J.P. Morgan survey found that the most frequent incentive for employers to explore 401(k) companies and offer a plan was to encourage their employees to put money aside responsibly for retirement. In order to do this effectively 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 various benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and stable 401(k) companies to bring you and your employees the retirement solutions that are in your needs and unique circumstances. Certain plans work better for certain employers, and our Ellisville, MO 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 financial planning education, guiding individual employees on retirement planning, and helping you navigate how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a vital facet of any 401(k) program.
Benefits of Offering a 401(k) Plan | Ellisville, MO 401(k) Companies
The advantages of providing retirement planning to workers 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 generating sufficient income. But there are a lot of reasons why initiating a 401(k) plan for your employees may be best for your bottom line in the end. 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:
Recruiting and Retaining Talent | Ellisville, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey discovered 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 keep your favorite employees than letting them know you care about their financial well-being, even after they are no longer working for you?
Motivating Employees | Ellisville, MO 401(k) Companies
Many Ellisville, MO businesses offer higher contributions when their employees meet particular performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be a great way to keep your best employees motivated to keep up their production.
Plan Startup Tax Credits | Ellisville, MO 401(k) Companies
Small and medium companies are able to obtain a tax credit for plan startup costs if they fulfill three requirements stipulated by the IRS:
- You had 100 or fewer staff who received a minimum of $5,000 in compensation from you the previous year.
- You had a minimum of one plan participant who was a non-highly compensated employee.
- Your business 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 available for up to three years, and there is a further tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.
Additional Tax Advantages
Apart from the startup tax credit, the IRS offers two further tax benefits for sponsoring a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not exceed 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.
Correct Capital's financial advisors also offer comprehensive tax planning services to Ellisville, MO residents and employers. We'll work to reduce your tax liability as part of our 401(k) services.
One of the features that sets Correct Capital apart from other 401(k) consultants in Ellisville, MO is that we offer financial planning as a perk to plan participants. Through group education meetings, we'll ensure your employees recognize the ideal investment options for themselves, are aware of how your 401(k) plan functions, and recognize how it's serving them. We can also use 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 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) consultants at Correct Capital can help your business initiate several different plans through many different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that includes a range of investment options. Employers may match 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, except 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 individual takes money out 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 specially for small businesses who need a cost-effective way to offer their employees retirement benefits. 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:
- An equal contribution of no more than 3% of a worker's pay; or
- A non-elective contribution of 2% of a worker's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, with the exception they must include employer 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 gain an understanding of your Ellisville, MO company 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:
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
- Social Security Consultants Near Me
- Retirement Calculator
- Retirement Planning
- Rollover 401(k)
- Wealth Management
The Correct Capital Difference | Ellisville, MO 401(k) Companies
Correct Capital is unique among Ellisville, MO 401(k) advisors because we offer the degree of personalized care as smaller advisory firms, but couple it with the same knowledge, experience, and partnerships as larger firms. We provide 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 introduce companies to 401(k) companies for more than two decades and currently represent over $230 million in total plan assets throughout the United States. Call us at 314-930-401(k) or contact us online to talk over your 401(k) needs today.