401(k) Companies in Ladue, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Ladue, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a wonderful way for small and mid-sized companies in Ladue, MO to attract and hold onto employees, incentivize great production, and get those much-needed tax breaks. Correct Capital Wealth Management has been connecting companies with trustworthy 401(k) companies in Ladue, MO for over 20 years. Call us today at 314-930-401(k) or contact us online to find out more about what Correct Capital can do for your Ladue, MO business and employees.
As of 2020, defined-contribution (DC) plans like 401(k)s comprise $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 50% of all businesses in the United States with under 50 employees offer a 401(k) plan to their employees, and more than a third have no present intent to do so. A different study found that a 401(k) plan is the only avenue many Americans have for saving for retirement.
The J.P. Morgan survey found that the most frequent reason for employers to explore 401(k) companies and provide a plan was to encourage their employees to save responsibly for retirement. In order to do this fruitfully for your best employees, it is important to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in Ladue, MO.
There are countless advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and safe 401(k) companies to bring you and your employees the retirement solutions that serve your needs and unique situation. Certain plans work better for certain companies, and our Ladue, MO 401(k) advisors help identify 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 connect you to . From offering financial planning education, advising 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) advisory services are an invaluable facet of any 401(k) program.
Benefits of Offering a 401(k) Plan | Ladue, MO 401(k) Companies
The benefits of providing retirement planning to staff through 401(k) companies are clear. Thirty-nine percent of employers who did not offer 401(k) plans gave their reason as being that their company was not bringing in enough income. But there are countless reasons why implementing a 401(k) plan for your employees may wind up being best for your bottom line. The 401(k) advisors at Correct Capital will compile a comprehensive guide to the myriad advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Ladue, MO 401(k) Companies
We're going through the Great Resignation; a recent survey reported that 55% of Americans expected to search for a new job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer has a 401(k) plan. What better way to hold on to your best employees than assuring them that you care about their financial well-being, even after they've moved on?
Motivating Employees | Ladue, MO 401(k) Companies
Many Ladue, MO employers give higher contributions when their employees reqach certain performance goals. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to maintain their performance.
Plan Startup Tax Credits | Ladue, MO 401(k) Companies
Small and medium companies are able to get a tax credit for plan startup expenses if they meet three requirements laid out by the IRS:
- You had less than 100 workers who were paid a minimum of $5,000 in compensation from you the year prior.
- You had at least one plan participant who was a non-highly compensated employee.
- Your business 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 a further tax credit for attaching an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Advantages
Besides the startup tax credit, the IRS offers two further tax benefits for sponsoring a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not exceed 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 features that makes Correct Capital different from other 401(k) advisors in Ladue, MO is that we offer financial planning as a perk to plan participants. Through group education meetings, we'll make sure your employees recognize the ideal investment options for themselves, are aware of how your 401(k) plan functions, and see 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 company, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | Ladue, MO 401(k) Companies
The Ladue, MO 401(k) consultants at Correct Capital can help your companies set up 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 includes a wide array of investment options. Employers are able to equal their employees' contributions. 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 money you have already paid taxes on. Gains earned in the plan, such as interest, dividends, or capital gains, is tax-free when the employee withdraws money after maintaining the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans exist specifically for small businesses looking for a cost-effective way to offer their staff a retirement plan. Like a traditional 401(k) plan, you may take money out of an employee's paycheck as their contribution. However, the employer must make either:
- An equal contribution of no more than 3% of a staff members pay; or
- A non-elective contribution of 2% of a staff members pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, except that they must include employer contributions that are fully vested when made. In return for required contributions, the IRS does not perform its annual nondiscrimination tests.
In our first meeting, we'll gain an understanding of your Ladue, MO company and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Ladue, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Ladue, MO 401(k) Companies
Correct Capital stands out among Ladue, MO 401(k) advisors because we provide the degree of individualized attention as smaller financial firms, but pair it with the same knowledge, professionalism, and partnerships as larger firms. We provide independent and objective direction, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and moral duty to do so. Our retirement consultants have been trusted to connect companies to 401(k) companies for more than 25 years and currently represent over $230 million in total plan assets across the United States. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.