401(k) Companies in Frontenac, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Frontenac, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a great way for medium and small companies in Frontenac, MO to attract and hold onto employees, incentivize great production, and get those much-needed tax breaks. Correct Capital Wealth Management has been connecting businesses with dependable 401(k) companies in Frontenac, MO for more than 20 years. Call us today at 314-930-401(k) or contact us online to find out more about how Correct Capital can help your Frontenac, MO business and your employees thrive.
As of 2020, defined-contribution (DC) plans such as 401(k)s accounted for $9.9 trillion of the total $32.3 trillion in retirement plan funds held in the United States, as reported by the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than 50% of all employers in the United States with less than 50 employees offer a retirement plan to their employees, and over a third have no current intent to do so. Another study found that a 401(k) plan is the only vehicle many Americans have for saving for retirement.
The J.P. Morgan survey found that the most frequent incentive for employers to look into 401(k) companies and offer a plan was to incentivize their employees to save responsibly for retirement. In order to do this fruitfully for your best employees, it is important to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Frontenac, MO.
There are a great deal of advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and safe 401(k) companies to bring you and your employees the retirement solutions that work for your best interests and individual circumstances. Specific plans are more apt for certain companies, and our Frontenac, MO 401(k) advisors help locate the preferred 401(k) company and plan for you and your employees. As an independent advisory firm, there is no restraint to which 401(k) companies we can connect you to . From offering financial planning education, guiding individual employees on retirement planning, and assisting you navigate how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a crucial facet of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Frontenac, MO 401(k) Companies
The benefits of providing 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 a lot of reasons why initiating a 401(k) plan for your employees might be best for your bottom line down the road. The 401(k) advisors at Correct Capital will put together an extensive guide to the many advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Frontenac, MO 401(k) Companies
We're going through the Great Resignation; a recent survey reported that 55% of Americans thought they would look for a new job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer offers a 401(k) plan. What better way to keep your best employees than letting them know their financial health is important to you, even after they are no longer working for you?
Incentivizing Employees | Frontenac, MO 401(k) Companies
Many Frontenac, MO employers offer greater contributions when their employees accomplish certain performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an effective way to keep your employees' motivation high and to sustain their production.
Plan Startup Tax Credits | Frontenac, MO 401(k) Companies
Small and medium companies are able to get a tax credit for plan startup expenses if they fulfill three requirements stipulated by the IRS:
- You had 100 or fewer staff who were paid at least $5,000 in compensation from you the year prior.
- You had a minimum of one plan participant who was a non-highly compensated employee.
- Your company 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 up to three years, and there is another tax credit for adding an automatic enrollment feature to a new or extant 401(k) plan.
Further Tax Advantages
In addition to 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 go over the limits dictated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
One of the aspects that sets Correct Capital apart from other 401(k) advisors in Frontenac, MO is that we offer financial planning as a benefit to plan participants. Through group education meetings, we'll make sure your employees understand the ideal investment opportunities for themselves, know how your 401(k) program works, and understand how it's helping them. We can also have one-on-one meetings to talk over financial portfolio and asset management with individual employees. When a new member 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 | Frontenac, MO 401(k) Companies
The Frontenac, MO 401(k) advisors at Correct Capital can help your companies initiate a variety of different plans through a variety of different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that includes numerous investment options. Employers are able to match what their employees put in. Taxes are taken out 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 earned in the plan, such as interest, dividends, or capital gains, is tax-free when the individual withdraws funds after maintaining the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans exist specially for small businesses looking for a cost-effective way to offer their workers retirement benefits. Similar to a traditional 401(k) plan, you can 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 a staff members pay; or
- A non-elective contribution of 2% of an employee's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, with the exception the employer must make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its annual nondiscrimination tests.
In our initial meeting, we'll get to know your Frontenac, MO business and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in Frontenac, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Frontenac, MO 401(k) Companies
Correct Capital stands out among Frontenac, MO 401(k) advisors because we provide the degree of personalized care as smaller financial firms, but pair it with the same wisdom, professionalism, and partnerships as larger firms. We offer independent and objective advice, 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 over two decades and currently 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.