401(k) Companies in Ellisville, MO
401(k) Companies in Ellisville, MO. Establishing a 401(k) plan with trusted 401(k) advisors is an excellent way for small and mid-sized companies in Ellisville, MO to appeal to and retain employees, incentivize great work, and get those much-needed tax breaks. Correct Capital Wealth Management has been introducing employers to trustworthy 401(k) companies in Ellisville, MO for more than 20 years. Call us today at 877-930-4015 or contact us online to discover more about how Correct Capital can help your Ellisville, MO business and your employees flourish.
As of 2020, defined-contribution (DC) plans like 401(k)s made up $9.9 trillion of the total $32.3 trillion in retirement plan assets held in the United States, as reported by 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 under 50 employees provide a 401(k) plan as an employee benefit, and over a third have no present plans to do so. A further study found that a 401(k) plan is the only vehicle many Americans have for saving for retirement.
The J.P. Morgan survey stated that the most common motive for employers to inquire about 401(k) companies and provide a plan was to incentivize their employees to put money aside responsibly for retirement. In order to do this effectively for your valued employees, it is essential to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in Ellisville, MO.
There are countless benefits to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and safe 401(k) companies to put forward for you and your employees the retirement solutions that are in your needs and individual circumstances. Certain plans work better for certain businesses, and our Ellisville, MO 401(k) advisors help recognize the preferred 401(k) company and plan for you and your employees. As an independent retirement planning firm, there is no limit to which 401(k) companies we can work with . From offering investment education, guiding individual employees on retirement planning, and helping you understand how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are an indispensable aspect of any 401(k) program.
Benefits of Offering a 401(k) Plan | Ellisville, MO 401(k) Companies
The advantages of offering retirement planning to staff through 401(k) companies are evident. Almost 40% of employers who did not offer 401(k) plans stated that their business was not bringing in enough profit. But there are numerous reasons why setting up a 401(k) plan for your employees might end up being best for your bottom line. The 401(k) advisors at Correct Capital will compile an all-inclusive guide to the various benefits certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Ellisville, MO 401(k) Companies
We're living through the Great Resignation; a recent survey reported 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 hold on to your hardest working employees than assuring them that you care about their financial well-being, even after they are no longer working for you?
Incentivizing Employees | Ellisville, MO 401(k) Companies
Many Ellisville, MO employers give increased contributions when their employees accomplish specific performance goals. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to maintain their production.
Plan Startup Tax Credits | Ellisville, MO 401(k) Companies
Small and medium companies are able to receive a tax credit for plan startup expenses if they meet three requirements stipulated by the IRS:
- You had 100 or fewer employees who were paid 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.
- In the three years prior, 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 another tax credit for attaching an automatic enrollment feature to a new or extant 401(k) plan.
Additional Tax Benefits
Besides the startup tax credit, the IRS offers two further tax benefits for sponsoring a 401(k) program:
- Employer contributions are tax-deductible to the extent that the contributions do not surpass the limits stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and posses tax deferral until distribution.
Correct Capital's financial advisors also offer comprehensive tax planning services to Ellisville, MO companies. We'll strive to lower your tax liability as part of our 401(k) services.
Employee Education
One of the things that makes Correct Capital different from other 401(k) consultants in Ellisville, MO is that we offer financial planning as a perk to plan participants. Through group education gatherings, we'll ensure your employees understand the best investment opportunities for themselves, are aware of how your 401(k) plan functions, and see how it's benefiting them. We can also use one-on-one meetings to discuss financial portfolio and asset management with individual staff. When a new employer joins your team and they had a 401(k) plan with their prior company, we can help them 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 companies initiate a variety of different plans through many different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers a wide array of investment options. Employers may match what their employees put in. Taxes are paid 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 individual takes funds out after maintaining the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans exist specifically for small businesses who need a cost-efficient way to offer their staff retirement benefits. Like a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. However, the employer must make either:
- An equal contribution of up to 3% of an employee's earnings; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, however the employer must make contributions that are fully vested when made. In exchange for for required contributions, the IRS does not conduct its annual nondiscrimination tests.
In our initial meeting, we'll get to know your Ellisville, MO business and your employee's retirement needs to find the best type of 401(k) plan for you.
Other services we offer in Ellisville, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | Ellisville, MO 401(k) Companies
Correct Capital stands out among Ellisville, MO 401(k) advisors because we provide the degree of personalized care as smaller advisory firms, but pair it with the same savvy, professionalism, and partnerships as larger firms. We offer independent and objective direction, always intended to do what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and moral duty to do so. Our retirement consultants have been trusted to introduce employers to 401(k) companies for over 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 go over your 401(k) needs today.
