401(k) Companies in Kirkwood, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Kirkwood, MO. Setting up a 401(k) plan with trustworthy 401(k) advisors is a great way for medium and small businesses in Kirkwood, MO to draw and retain employees, encourage great production, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been introducing businesses to trustworthy 401(k) companies in Kirkwood, MO for over two decades. Call us today at 314-930-401(k) or contact us online to discover more about what Correct Capital can do for your Kirkwood, MO business and employees.
As of 2020, defined-contribution (DC) plans like 401(k)s accounted for $9.9 trillion of the total $32.3 trillion in retirement plan assets held in the United States, according to the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than half of all businesses 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 present aim to do so. A different study found that a 401(k) plan is the only avenue many Americans have for setting money aside for retirement.
The J.P. Morgan survey stated that the most frequent reason for employers to look into 401(k) companies and provide a plan was to incentivize their employees to save responsibly for retirement. In order to do this effectively for your prized employees, it is critical to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in Kirkwood, MO.
There are various advantages to using 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 serve your needs and individual situation. Specific plans work better for certain employers, and our Kirkwood, MO 401(k) advisors help determine the preferred 401(k) company and plan for you and your employees. As an independent retirement planning firm, there is no limit to which 401(k) companies we can work with . From offering investment education, guiding 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) consultant services are a vital aspect of any 401(k) program.
Advantages of Offering a 401(k) Plan | Kirkwood, MO 401(k) Companies
The benefits of providing retirement planning to staff through 401(k) companies are apparent. Almost 40% of employers who did not offer 401(k) plans gave their reason as being that their company was not bringing in enough profit. But there are a lot of reasons why setting up a 401(k) plan for your employees could end up being best for your bottom line. The 401(k) consultants at Correct Capital will compile an extensive guide to the various benefits certain plans will have for you. Among them are:
Attracting and Retaining Talent | Kirkwood, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey found that 55% of Americans anticipated searching for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer provides a 401(k) plan. What better way to retain your best employees than letting them know you care about their financial security, even after they've left the workforce?
Incentivizing Employees | Kirkwood, MO 401(k) Companies
Many Kirkwood, MO businesses offer greater contributions when their employees reqach specific performance goals. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to maintain their production.
Plan Startup Tax Credits | Kirkwood, MO 401(k) Companies
Small and medium companies are able to receive a tax credit for plan startup costs if they fulfill three requirements laid out by the IRS:
- You had under 100 employees who received 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 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 obtainable for up to three years, and there is an additional tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Further Tax Benefits
Other than the startup tax credit, the IRS offers two other tax benefits for having a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not exceed the limits set out in Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and benefit from tax deferral until distribution.
One of the aspects that makes Correct Capital different from other 401(k) consultants in Kirkwood, MO is that we offer financial planning as a benefit to your participating employees. With group education gatherings, we'll make sure your employees know the ideal investment options for themselves, know how your 401(k) plan works, and appreciate how it's helping them. We can also use one-on-one meetings to go through financial portfolio and asset management with individual employees. When you hire a new employee that had a 401(k) plan with their old employer, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Kirkwood, MO 401(k) Companies
The Kirkwood, MO 401(k) advisors at Correct Capital can help your business initiate 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 range of investment options. Employers can equal what their employees put in. Taxes are paid 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. Gains obtained in the plan, such as interest, dividends, or capital gains, is tax-free when the employee withdraws money after continuing the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans exist specially for small businesses looking for a cost-efficient way to offer their staff a retirement plan. 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:
- A matching contribution of up to 3% of an employee's earnings; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, but the employer must make contributions that are fully vested when made. In return for required contributions, the IRS does not perform its yearly nondiscrimination tests.
When we first meet with you, we'll get to know your Kirkwood, MO business and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in Kirkwood, MO include:
- Retirement Planning
- Rollover 401(k)
- Wealth Management
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
The Correct Capital Difference | Kirkwood, MO 401(k) Companies
Correct Capital is unique among Kirkwood, MO 401(k) advisors because we provide the level of personalized attention as smaller financial firms, but couple it with the same wisdom, accomplishment, and connections as larger firms. We offer independent and objective direction, always geared toward doing what's best for you; 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 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.