401(k) Companies in Fenton, MO
401(k) Companies in Fenton, MO. Initiating a 401(k) plan with dependable 401(k) advisors is an excellent way for medium and small companies in Fenton, MO to draw and retain employees, encourage great production, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with trusted 401(k) companies in Fenton, MO for more than two decades. Call us today at 314-930-401(k) 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 such as 401(k)s made up $9.9 trillion of the total $32.3 trillion in retirement plan capital 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 50% of all businesses in the United States with under 50 employees provide a 401(k) plan as an employee benefit, and more than a third have no current intent to do so. An additional study found that a 401(k) plan is the only instrument many Americans have for putting money aside for retirement.
The J.P. Morgan survey found that the most frequent reason for employers to look into 401(k) companies and offer a plan was to incentivize their employees to set money aside conscientiously for retirement. In order to do this successfully for your prized employees, it is important to reach out to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Fenton, MO.
There are a great deal of advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and secure 401(k) companies to bring you and your employees the retirement solutions that serve your needs and unique circumstances. Specific plans work better for certain companies, and our Fenton, MO 401(k) advisors help pick out the preferred 401(k) company and plan for you and your employees. As an independent retirement planning firm, there is no restriction to which 401(k) companies we can connect you to . From offering financial planning education, advising individual employees on retirement planning, and assisting you navigate how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an indispensable facet of any 401(k) program.
Advantages of Offering a 401(k) Plan | Fenton, MO 401(k) Companies
The advantages of offering retirement planning to employees through 401(k) companies are clear. Thirty-nine percent of employers who did not offer 401(k) plans stated that their company was not bringing in sufficient revenue. 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) advisors at Correct Capital will compile an extensive guide to the various benefits certain programs will have for you. Among them are:
Attracting and Retaining Talent | Fenton, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey found that 55% of Americans thought they would search for a different job in 2021 and 2022. Workers feel 45% more assured about their retirement when their employer provides a defined contribution plan. What better way to retain your hardest working employees than assuring them that their financial health matters to you, even after they've left the workforce?
Motivating Employees | Fenton, MO 401(k) Companies
Many Fenton, MO employers offer increased contributions when particular performance goals are met. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an effective way to keep your best employees motivated to continue their performance.
Plan Startup Tax Credits | Fenton, MO 401(k) Companies
Small and medium companies are able to receive a tax credit for plan startup costs if they fulfill three requirements dictated by the IRS:
- You had 100 or fewer workers who collected a minimum of $5,000 in compensation from you the previous year.
- You had at least one plan participant who was a non-highly compensated employee.
- Your business did not already have a retirement plan benefiting substantially the same employees during the three years preceding the year for which you are claiming credit.
The tax credit is accessible for a maximum of three years, and there is another tax credit for attaching an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Advantages
Other than the startup tax credit, the IRS offers two added tax benefits for sponsoring a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not exceed the limits set out in 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 comprehensive tax planning services to Fenton, MO residents and employers. 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) advisors in Fenton, MO is that we offer financial planning as a perk to plan participants. Through group education gatherings, we'll make certain your employees recognize the ideal investment options for themselves, know how your 401(k) program works, and appreciate how it's benefiting them. We can also use one-on-one sessions to go through 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 help them 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 business set up a variety of different plans through several different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes a wide array of investment options. Employers are able to match their employees' contributions. Taxes are paid 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. Gains earned in the plan, such as interest, dividends, or capital gains, is tax-free when the individual takes funds out after continuing the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans are specially for small businesses who need a cost-efficient way to offer their workers a retirement plan. Like a traditional 401(k) plan, you may take money out of an employee's paycheck as their contribution. But, the employer must make either:
- A matching contribution of up to 3% of an employee's earnings; or
- A non-elective contribution of 2% of a worker's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, other than the fact that the employer is required to make contributions that are fully vested when made. In exchange for for required contributions, the IRS does not carry out its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Fenton, MO company and your employee's retirement needs to find the ideal 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
- Small Business Retirement Plans
- Tax Planning
- Social Security Consultants Near Me
The Correct Capital Difference | Fenton, MO 401(k) Companies
Correct Capital stands out among Fenton, MO 401(k) advisors because we provide the degree of individualized attention as smaller advisory firms, but couple it with the same knowledge, accomplishment, and partnerships as larger firms. We provide independent and objective advice, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and moral obligation to do so. Our retirement consultants have been trusted to connect employers to 401(k) companies for over 25 years and at present we represent over $230 million in total plan assets nationwide. Call us at 314-930-401(k) or contact us online to discuss your 401(k) needs today.
