401(k) Companies in Fenton, MO
401(k) Companies in Fenton, MO. Setting up a 401(k) plan with dependable 401(k) advisors is a wonderful way for medium and small businesses in Fenton, MO to attract and hold onto employees, incentivize great performance, and obtain those much-desired tax breaks. Correct Capital Wealth Management has been introducing companies to secure 401(k) companies in Fenton, MO for over two decades. Call us today at 877-930-4015 or contact us online to find out more about what Correct Capital can do for your Fenton, MO business and employees.
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 funds held in the United States, according to data from 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 provide a 401(k) plan to their employees, and more than a third have no present intent to do so. An additional study found that a 401(k) plan is the only avenue many Americans have for saving for retirement.
The J.P. Morgan survey reported that the most common motive for employers to explore 401(k) companies and offer a plan was to incentivize their employees to set money aside responsibly for retirement. In order to do this successfully for your best employees, it is essential to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in Fenton, MO.
There are numerous benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to put forward for you and your employees the retirement solutions that work for your best interests and specific situation. Certain plans are more apt for certain businesses, and our Fenton, MO 401(k) advisors help recognize the preferred 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 work with . From offering financial planning education, guiding individual employees on retirement planning, and helping you understand how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a vital part of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Fenton, MO 401(k) Companies
The advantages of offering retirement planning to staff through 401(k) companies are clear. Almost 40% of employers who did not offer 401(k) plans said that their business was not generating enough income. But there are countless reasons why implementing 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 many benefits certain plans will have for you. Among them are:
Attracting and Retaining Talent | Fenton, MO 401(k) Companies
We're living through the Great Resignation; a recent survey found that 55% of Americans anticipated searching for a new job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer has a retirement plan. What better way to retain your hardest working employees than assuring them that their financial health is important to you, even after they've left the workforce?
Incentivizing Employees | Fenton, MO 401(k) Companies
Many Fenton, MO businesses give greater contributions when certain 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 best employees motivated to sustain their production.
Plan Startup Tax Credits | Fenton, 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 under 100 workers who collected at least $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 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 another tax credit for adding 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 other 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 stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to Fenton, MO companies. We'll work to reduce 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 Fenton, MO is that we offer financial planning as a service to your participating staff. With group education meetings, we'll make certain your employees understand the ideal investment opportunities for themselves, are aware of how your 401(k) plan functions, and appreciate how it's helping them. We can also use one-on-one sessions to go through financial portfolio and asset management with individual employees. When a new employer joins your team and they had a 401(k) plan with their old employer, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Fenton, MO 401(k) Companies
The Fenton, MO 401(k) consultants at Correct Capital can help your companies initiate many different plans through a variety of different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes a range of investment options. Employers are able to 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. Income made in the plan, such as interest, dividends, or capital gains, is tax-free when the employee takes funds out after continuing the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are in place specifically for small businesses who want a cost-effective way to offer their staff retirement benefits. Similar to a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- An equal 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, except that they must include employer contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its yearly nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Fenton, MO business and your employee's retirement needs to find the best type of 401(k) plan for you.
Other services we offer in Fenton, MO 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 | Fenton, MO 401(k) Companies
Correct Capital is unique among Fenton, MO 401(k) advisors because we provide the level of personalized care as smaller advisory firms, but combine it with the same knowledge, professionalism, and connections as larger firms. We offer independent and objective advice, always geared toward doing what's best for you; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to introduce employers to 401(k) companies for more than 25 years and currently represent over $230 million in total plan assets nationwide. Call us at 877-930-4015 or contact us online to discuss your 401(k) needs today.
