401(k) Companies in Fairview Heights, IL

401(k) Companies in Fairview Heights, IL A Great 401(k) Plan Benefits You and Your Employees

401(k) Companies in Fairview Heights, IL. Establishing a 401(k) plan with trusted 401(k) advisors is a wonderful way for small and mid-sized businesses in Fairview Heights, IL to draw and hold onto employees, incentivize great production, and get those much-needed tax breaks. Correct Capital Wealth Management has been connecting businesses with secure 401(k) companies in Fairview Heights, IL 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 Fairview Heights, IL 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 assets held in the United States, according to the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than 50% of all companies in the United States with less than 50 employees offer a 401(k) plan as an employee benefit, and more than one-third have no present 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 reported that the most frequent motivation for employers to look into 401(k) companies and provide a plan was to incentivize their employees to save responsibly for retirement. In order to do this effectively for your valued employees, it is essential to reach out to a trusted, independent retirement planning advisory firm like Correct Capital based in Fairview Heights, IL.

There are a great deal of advantages to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to bring you and your employees the retirement solutions that work for your needs and unique situation. Specific plans work better for certain businesses, and our Fairview Heights, IL 401(k) advisors help determine the best 401(k) company and plan for you and your employees. As independent retirement consultants, 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 helping you navigate how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a vital facet of any 401(k) plan.

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Advantages of Offering a 401(k) Plan | Fairview Heights, IL 401(k) Companies

The benefits of providing retirement planning to employees through 401(k) companies are obvious. Thirty-nine percent of employers who did not offer 401(k) plans said that their company was not generating enough revenue. But there are a lot of reasons why initiating a 401(k) plan for your employees could end up being best for your bottom line. The 401(k) advisors at Correct Capital will compile an all-inclusive guide to the various advantages 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 found that 55% of Americans thought they would search for a different job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer offers a retirement plan. What better way to hang on to your hardest working employees than letting them know you care about their financial health, even after they've left the workforce?

Motivating Employees | Fairview Heights, IL 401(k) Companies

Many Fairview Heights, IL employers give greater contributions when particular performance goals are met. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be an effective way to keep your employees' motivation high and to keep up their production.

Plan Startup Tax Credits | Fairview Heights, IL 401(k) Companies

Small and medium companies are able to receive a tax credit for plan startup expenses if they fulfill three requirements dictated by the IRS:

  1. You had under 100 employees who were paid at least $5,000 in compensation from you the previous year.
  2. You had at least one plan participant who was a non-highly compensated employee.
  3. 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 obtainable for up to three years, and there is another tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.

Additional Tax Benefits

Other than the startup tax credit, the IRS offers two added tax benefits for having a 401(k) program:

  1. Employer contributions are tax-deductible to to the point that they do not exceed the limits dictated by Section 404 of the Internal Revenue Code.
  2. Elective deferrals and investment gains are not taxed and posses tax deferral until distribution.

Correct Capital's financial advisors also offer all-inclusive 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 features that makes Correct Capital different from other 401(k) consultants in Fairview Heights, IL is that we offer financial planning as a perk to your participating employees. With group education gatherings, we'll make sure your employees know the ideal investment opportunities for themselves, are aware of how your 401(k) plan functions, and appreciate how it's benefiting them. We can also have one-on-one sessions to talk over financial portfolio and asset management with individual employees. When a new employer joins your team and they had a 401(k) plan with their previous company, we can assist them with their 401(k) rollover.

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Types of 401(k) Plans | Fairview Heights, IL 401(k) Companies

The Fairview Heights, IL 401(k) advisors at Correct Capital can help your companies set up 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 may equal their employees' contributions. Taxes are deducted when the savings and gains are withdrawn.
  • Roth 401(k) Plans: Roth plans are similar to traditional plans, however contributions are made with after-tax dollars. Income earned in the plan, such as interest, dividends, or capital gains, is tax-free when the individual withdraws money after continuing the account for 5 years and they are 59-½ years old or older.
  • SIMPLE 401(k) Plans: These plans are in place specifically for small businesses looking for a cost-effective way to offer their workers a retirement plan. 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 up to 3% of a staff members pay; or
    • A non-elective contribution of 2% of a worker's earnings.
  • Safe Harbor 401(k) Plans: Safe Harbor plans are much the same 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 yearly nondiscrimination tests.

In our initial meeting, we'll get to know 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:

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The Correct Capital Difference | Fairview Heights, IL 401(k) Companies

Correct Capital is distinctive among Fairview Heights, IL 401(k) advisors because we provide the level of individualized care as smaller advisory firms, but combine it with the same knowledge, accomplishment, and partnerships as larger firms. We provide independent and objective guidance, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and moral responsibility to do so. Our retirement consultants have been trusted to connect employers to 401(k) companies for more than 25 years and currently represent over $230 million in total plan assets across the United States. Call us at 314-930-401(k) or contact us online to talk over your 401(k) needs today.

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