401(k) Companies in Frontenac, MO
401(k) Companies in Frontenac, MO. Establishing a 401(k) plan with dependable 401(k) advisors is a great way for small and mid-sized businesses in Frontenac, MO to appeal to and hold onto employees, incentivize great work, and receive those much-needed tax breaks. Correct Capital Wealth Management has been introducing companies to trustworthy 401(k) companies in Frontenac, MO for over 20 years. Call us today at 877-930-4015 or contact us online to discover more about what Correct Capital can do for your Frontenac, 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 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 offer a retirement plan to their employees, and more than 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 setting money aside for retirement.
The J.P. Morgan survey reported that the most common motive for employers to explore 401(k) companies and provide a plan was to incentivize their employees to put money aside responsibly for retirement. In order to do this fruitfully for your best employees, it is essential to reach out to a trusted, independent retirement planning advisory firm like Correct Capital based in Frontenac, MO.
There are various advantages 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 needs and unique situation. Specific plans work better for certain businesses, and our Frontenac, MO 401(k) advisors help pick out the best 401(k) company and plan for you and your employees. As an independent advisory firm, there is no restriction to which 401(k) companies we can connect you to . From offering investment education, advising individual employees on retirement planning, and assisting you understand 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 workers through 401(k) companies are obvious. Thirty-nine percent of employers who did not offer 401(k) plans stated that their company was not generating enough revenue. But there are countless reasons why implementing a 401(k) plan for your employees may end up being best for your bottom line. The 401(k) consultants at Correct Capital will compile a comprehensive guide to the myriad advantages certain programs will have for you. Among them are:
Attracting and Retaining Talent | Frontenac, MO 401(k) Companies
We're going 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 feel 45% more confident about their retirement when their employer has a defined contribution plan. What better way to hang on to your best employees than letting them know you care about their financial security, even after they've left the workforce?
Motivating Employees | Frontenac, MO 401(k) Companies
Many Frontenac, MO businesses give higher contributions when their employees achieve specific performance goals. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be a great way to keep your employees' motivation high and to keep up their performance.
Plan Startup Tax Credits | Frontenac, MO 401(k) Companies
Small and medium companies can obtain a tax credit for plan startup costs if they meet three requirements dictated by the IRS:
- You had 100 or fewer staff who collected at least $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 years prior, you did not already have a retirement plan in place that benefited 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 401(k) plan or one you already had.
Additional Tax Benefits
Other than the startup tax credit, the IRS offers two added tax benefits for implementing a 401(k) program:
- Employer contributions are tax-deductible to the extent that the contributions do not exceed the limits stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and posses tax deferral until distribution.
Correct Capital's financial advisors also offer comprehensive tax planning services to Frontenac, MO residents and employers. We'll strive 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) advisors in Frontenac, MO is that we offer financial planning as a benefit to plan participants. Through group education gatherings, we'll make certain your employees recognize the ideal investment options for themselves, are aware of how your 401(k) program works, and understand how it's benefiting them. We can also have one-on-one meetings to go through financial portfolio and asset management with individual staff. When a new member joins your team and they had a 401(k) plan with their old company, we can assist 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 several different plans through many different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that offers a wide array of investment options. Employers are able to equal what their employees put in. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same traditional plans, with the exception contributions are made with after-tax dollars. Income made 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 at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans exist specially for small businesses who want a cost-efficient way to offer their staff a retirement plan. Like a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- An equal contribution of no more than 3% of a worker's earnings; or
- A non-elective contribution of 2% of a worker's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, with the exception the employer is required to make contributions that are fully vested when made. In return for required contributions, the IRS does not carry out its yearly nondiscrimination tests.
When we first meet with you, 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:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | Frontenac, MO 401(k) Companies
Correct Capital stands out among Frontenac, MO 401(k) advisors because we offer the level of individualized attention as smaller advisory firms, but couple it with the same knowledge, accomplishment, and connections as larger firms. We provide independent and objective direction, always geared toward doing what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and moral obligation to do so. Our retirement consultants have been trusted to introduce businesses to 401(k) companies for more than two decades and at present we 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.
