401(k) Companies in Frontenac, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Frontenac, MO. Establishing a 401(k) plan with trustworthy 401(k) advisors is a wonderful way for medium and small companies in Frontenac, MO to attract and retain employees, incentivize great work, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been connecting employers with dependable 401(k) companies in Frontenac, 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 Frontenac, MO business and employees.
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 capital 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 401(k) plan as an employee benefit, and more than one-third have no current aim to do so. An additional study found that a 401(k) plan is the only instrument many Americans have for setting money aside for retirement.
The J.P. Morgan survey found that the most frequent motive for employers to look into 401(k) companies and offer a plan was to encourage their employees to set money aside conscientiously 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 a great deal of advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and stable 401(k) companies to offer you and your employees the retirement solutions that work for your best interests and unique situation. Certain plans work better for certain companies, and our Frontenac, MO 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, advising individual employees on retirement planning, and helping you maneuver how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an invaluable aspect of any 401(k) program.
Advantages of Offering a 401(k) Plan | Frontenac, MO 401(k) Companies
The advantages of providing retirement planning to staff through 401(k) companies are obvious. Thirty-nine percent of employers who did not offer 401(k) plans stated that their company was not bringing in sufficient profit. But there are many reasons why initiating a 401(k) plan for your employees may be best for your bottom line in the end. The 401(k) advisors at Correct Capital will compile an extensive guide to the various benefits certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Frontenac, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey discovered that 55% of Americans thought they would look for a different job in 2021 and 2022. Workers feel 45% more assured about their retirement when their employer offers a 401(k) plan. What better way to hang on to your hardest working employees than assuring them that you care about their financial well-being, even after they've moved on?
Motivating Employees | Frontenac, MO 401(k) Companies
Many Frontenac, MO employers give greater contributions when certain performance goals are met. 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 are able to collect a tax credit for plan startup costs if they meet three requirements stipulated by the IRS:
- You had less than 100 employees who were paid at least $5,000 in compensation from you the previous year.
- You had at least one plan participant who was a non-highly compensated employee.
- Your company did not already have a retirement plan covering 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 an additional tax credit for adding an automatic enrollment feature to a new or existing 401(k) plan.
Further Tax Advantages
Other than the startup tax credit, the IRS offers two added tax benefits for implementing a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not go over the limits stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and have the advantage of tax deferral until distribution.
One of the things that sets Correct Capital apart from other 401(k) consultants in Frontenac, MO is that we offer financial planning as a perk to your participating staff. Through group education gatherings, we'll ensure your employees know the best investment opportunities for themselves, understand how your 401(k) program functions, and recognize how it's serving them. We can also use one-on-one meetings to go through financial portfolio and asset management with individual staff. When you hire a new employee that had a 401(k) plan with their previous employer, 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 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 program that offers a wide array of investment options. Employers can equal what their employees put in. Taxes are taken out when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, except that contributions are made with after-tax dollars. Income obtained 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 who need a cost-efficient way to offer their workers 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 similar to to regular 401(k)s, however 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 first meeting, we'll gain an understanding of your Frontenac, MO company and your employee's retirement needs to find the best type of 401(k) plan for you.
Other services we offer in Frontenac, MO include:
- 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
- Retirement Calculator
- Retirement Planning
- Rollover 401(k)
The Correct Capital Difference | Frontenac, MO 401(k) Companies
Correct Capital is distinctive among Frontenac, MO 401(k) advisors because we offer the level of individualized attention as smaller financial firms, but combine it with the same knowledge, accomplishment, and partnerships as larger firms. We offer independent and objective advice, always intended to do what's best for you; as an Accredited Investment Fiduciary®, it's our legal and ethical responsibility 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 talk over your 401(k) needs today.