401(k) Companies in Kirkwood, MO
401(k) Companies in Kirkwood, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a wonderful way for medium and small businesses in Kirkwood, MO to attract and hold onto employees, encourage great performance, and receive those much-desired tax breaks. Correct Capital Wealth Management has been introducing companies to trustworthy 401(k) companies in Kirkwood, MO for over two decades. Call us today at 877-930-4015 or contact us online to learn more about what Correct Capital can do for your Kirkwood, 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 assets 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 retirement plan as an employee benefit, and over 33% have no present intentions to do so. An additional study found that a 401(k) plan is the only instrument many Americans have for saving for retirement.
The J.P. Morgan survey stated that the most frequent incentive for employers to research 401(k) companies and provide a plan was to encourage their employees to put money aside conscientiously for retirement. In order to do this fruitfully for your valued employees, it is essential to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Kirkwood, MO.
There are various benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and safe 401(k) companies to bring you and your employees the retirement solutions that serve your needs and unique situation. Specific plans work better for certain businesses, and our Kirkwood, MO 401(k) advisors help identify the preferred 401(k) company and plan for you and your employees. As independent advisors, 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 understand how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an indispensable part of any 401(k) program.
Benefits of Offering a 401(k) Plan | Kirkwood, MO 401(k) Companies
The advantages of providing retirement planning to staff through 401(k) companies are evident. Almost 40% of employers who did not offer 401(k) plans said that their reason was that their company was not bringing in enough profit. But there are numerous reasons why implementing a 401(k) plan for your employees could be best for your bottom line in the end. The 401(k) consultants at Correct Capital will compile a comprehensive guide to the many advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Kirkwood, MO 401(k) Companies
We're living through the Great Resignation; a recent survey stated that 55% of Americans thought they would look for a new job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer offers a retirement plan. What better way to hold on to your hardest working employees than letting them know their financial well-being matters to you, even after they've left the workforce?
Incentivizing Employees | Kirkwood, MO 401(k) Companies
Many Kirkwood, MO employers give increased contributions when their employees meet particular performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your best employees motivated to continue their performance.
Plan Startup Tax Credits | Kirkwood, MO 401(k) Companies
Small and medium companies are able to receive a tax credit for plan startup expenses if they satisfy three requirements stipulated by the IRS:
- You had less than 100 workers who collected 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.
- In the three years prior, 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 a further tax credit for adding 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 implementing a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not exceed 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.
Correct Capital's financial advisors also offer all-inclusive tax planning services to Kirkwood, MO businesses. We'll strive to reduce your tax liability as part of our 401(k) services.
Employee Education
One of the things that sets Correct Capital apart from other 401(k) consultants in Kirkwood, MO is that we offer financial planning as a perk to your participating employees. Through group education gatherings, we'll make certain your employees understand the ideal investment opportunities for themselves, know how your 401(k) program functions, and understand how it's serving them. We can also have one-on-one sessions to talk over financial portfolio and asset management with individual workers. When a new employer joins your team and they had a 401(k) plan with their previous company, we can help them with their 401(k) rollover.
Types of 401(k) Plans | Kirkwood, MO 401(k) Companies
The Kirkwood, MO 401(k) consultants at Correct Capital can help your business 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 offers numerous investment options. Employers are able to equal what their employees put in. Taxes are taken out when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same traditional plans, but contributions are made with money you have already paid taxes on. Gains made in the plan, such as interest, dividends, or capital gains, is tax-free when the employee withdraws funds after maintaining the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans are in place specially for small businesses who need a cost-effective way to offer their employees retirement benefits. Similar to 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 staff members 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 return for required contributions, the IRS does not conduct its annual nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Kirkwood, MO company and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in Kirkwood, 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
The Correct Capital Difference | Kirkwood, MO 401(k) Companies
Correct Capital stands out among Kirkwood, MO 401(k) advisors because we provide the degree of personalized care as smaller financial firms, but couple it with the same savvy, experience, and partnerships as larger firms. We provide independent and objective guidance, always intended to do what's best for you; as an Accredited Investment Fiduciary®, it's our legal and ethical obligation to do so. Our retirement consultants have been trusted to introduce companies 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 go over your 401(k) needs today.
