401(k) Companies in Fairview Heights, IL
401(k) Companies in Fairview Heights, IL. Setting up a 401(k) plan with trustworthy 401(k) advisors is an excellent way for medium and small companies in Fairview Heights, IL to appeal to and hold onto employees, encourage great performance, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been introducing employers to dependable 401(k) companies in Fairview Heights, IL for more than two decades. Call us today at 877-930-4015 or contact us online to learn more about how Correct Capital can help your Fairview Heights, IL business and your employees flourish.
As of 2020, defined-contribution (DC) plans like 401(k)s comprise $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 companies in the United States with less than 50 employees offer a 401(k) plan to their employees, and more than a third have no current intentions to do so. A different study found that a 401(k) plan is the only avenue many Americans have for putting money aside for retirement.
The J.P. Morgan survey stated that the most frequent motive for employers to inquire about 401(k) companies and offer a plan was to incentivize their employees to put money aside responsibly for retirement. In order to do this effectively for your best employees, it is crucial to reach out to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Fairview Heights, IL.
There are countless benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and stable 401(k) companies to offer you and your employees the retirement solutions that work for your best interests and individual situation. Certain plans work better for certain businesses, and our Fairview Heights, IL 401(k) advisors help pick out the preferred 401(k) company and plan for you and your employees. As an independent advisory firm, there is no limit to which 401(k) companies we can work with . From offering investment education, counseling individual employees on retirement planning, and assisting you maneuver how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an indispensable aspect of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Fairview Heights, IL 401(k) Companies
The advantages of providing retirement planning to employees through 401(k) companies are evident. Thirty-nine percent of employers who did not offer 401(k) plans stated that their company was not bringing in enough income. But there are a lot of reasons why setting up a 401(k) plan for your employees could wind up being best for your bottom line. The 401(k) consultants at Correct Capital will put together an extensive guide to the various benefits certain plans will have for you. Among them are:
Attracting and Retaining Talent | Fairview Heights, IL 401(k) Companies
We're living through the Great Resignation; a recent survey stated that 55% of Americans thought they would search for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer has a 401(k) plan. What better way to retain your hardest working employees than letting them know their financial health is important to you, even after they've left the workforce?
Incentivizing Employees | Fairview Heights, IL 401(k) Companies
Many Fairview Heights, IL employers give increased contributions when certain performance goals are met. 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 keep up their performance.
Plan Startup Tax Credits | Fairview Heights, IL 401(k) Companies
Small and medium companies can collect a tax credit for plan startup expenses if they fulfill three requirements dictated by the IRS:
- You had 100 or fewer workers who were paid 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.
- In the three preceding years, you did not already have a retirement plan in place that covered substantially the same employees.
The tax credit is accessible for a maximum of three years, and there is a different tax credit for attaching an automatic enrollment feature to a new or extant 401(k) plan.
Additional Tax Benefits
Apart from the startup tax credit, the IRS offers two extra tax benefits for having a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not go over the limits set out in Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and have the advantage of tax deferral until distribution.
Correct Capital's financial advisors also offer extensive tax planning services to Fairview Heights, IL residents and employers. We'll work to decrease your tax liability as part of our 401(k) services.
Employee Education
One of the aspects that makes Correct Capital different from other 401(k) advisors in Fairview Heights, IL is that we offer financial planning as a perk to plan participants. With group education meetings, we'll make certain your employees know the best investment opportunities for themselves, understand how your 401(k) program functions, and see how it's helping them. We can also use one-on-one meetings to discuss financial portfolio and asset management with individual staff. When a new member joins your team and they had a 401(k) plan with their prior company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Fairview Heights, IL 401(k) Companies
The Fairview Heights, IL 401(k) advisors at Correct Capital can help your business initiate 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 numerous investment options. Employers can match their employees' contributions. Taxes are paid when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same 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 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 specifically for small businesses looking for a cost-efficient 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 a staff members earnings; 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, except that they must include employer contributions that are fully vested when made. In exchange for for required contributions, the IRS does not perform its yearly nondiscrimination tests.
In our first meeting, we'll gain an understanding of your Fairview Heights, IL business and your employee's retirement needs to identify the ideal type of 401(k) plan for you.
Other services we offer in Fairview Heights, IL include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
The Correct Capital Difference | Fairview Heights, IL 401(k) Companies
Correct Capital is unique among Fairview Heights, IL 401(k) advisors because we provide the level of individualized care as smaller financial firms, but pair it with the same knowledge, professionalism, and connections as larger firms. We provide independent and objective counsel, 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 connect employers to 401(k) companies for more than 25 years and at present we represent over $230 million in total plan assets throughout the United States. Call us at 877-930-4015 or contact us online to go over your 401(k) needs today.
