401(k) Companies in Lake St. Louis, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Lake St. Louis, MO. Setting up a 401(k) plan with dependable 401(k) advisors is an excellent way for small and mid-sized businesses in Lake St. Louis, MO to appeal to and retain employees, encourage great production, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with trustworthy 401(k) companies in Lake St. Louis, MO for more than 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 Lake St. Louis, MO business and employees.
As of 2020, defined-contribution (DC) plans such as 401(k)s comprise $9.9 trillion of the total $32.3 trillion in retirement plan funds 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 businesses in the United States with less than 50 employees provide a 401(k) plan as an employee benefit, and over 33% have no current plans to do so. Another study found that a 401(k) plan is the only vehicle many Americans have for saving for retirement.
The J.P. Morgan survey stated that the most common incentive for employers to research 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 prized employees, it is essential to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Lake St. Louis, MO.
There are countless benefits to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and safe 401(k) companies to offer you and your employees the retirement solutions that are in your needs and specific situation. Specific plans are more apt for certain businesses, and our Lake St. Louis, MO 401(k) advisors help locate 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 investment education, guiding 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) consultant services are a vital part of any 401(k) program.
Benefits of Offering a 401(k) Plan | Lake St. Louis, MO 401(k) Companies
The advantages 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 generating enough earnings. But there are many reasons why setting up a 401(k) plan for your employees might wind up being best for your bottom line. The 401(k) consultants at Correct Capital will compile an extensive guide to the many benefits certain plans will have for you. Among them are:
Attracting and Retaining Talent | Lake St. Louis, MO 401(k) Companies
We're going through the Great Resignation; a recent survey reported that 55% of Americans anticipated searching for a new job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer has a retirement plan. What better way to retain your favorite employees than assuring them that you care about their financial health, even after they are no longer working for you?
Motivating Employees | Lake St. Louis, MO 401(k) Companies
Many Lake St. Louis, MO employers offer greater contributions when specific performance goals are met. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be a great way to keep your employees' motivation high and to maintain their production.
Plan Startup Tax Credits | Lake St. Louis, MO 401(k) Companies
Small and medium companies are able to collect a tax credit for plan startup costs if they satisfy three requirements stipulated by the IRS:
- You had 100 or fewer staff who collected at least $5,000 in compensation from you the year prior.
- You had at least one plan participant who was a non-highly compensated employee.
- In the three preceding years, you did not already have a retirement plan in place that covered substantially the same employees.
The tax credit is accessible for up to three years, and there is an additional tax credit for attaching an automatic enrollment feature to a new or extant 401(k) plan.
Additional Tax Benefits
In addition to the startup tax credit, the IRS offers two additional tax benefits for having 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 have the benefit of tax deferral until distribution.
Correct Capital's financial advisors also offer extensive tax planning services to Lake St. Louis, MO residents and employers. We'll strive to reduce your tax liability as part of our 401(k) services.
One of the aspects that sets Correct Capital apart from other 401(k) consultants in Lake St. Louis, MO is that we offer financial planning as a perk to plan participants. Through group education gatherings, we'll make sure your employees understand the best investment opportunities for themselves, understand how your 401(k) plan functions, and see how it's helping them. We can also use one-on-one sessions to discuss financial portfolio and asset management with individual workers. When a new employer joins your team and they had a 401(k) plan with their old employer, we can help them with their 401(k) rollover.
Types of 401(k) Plans | Lake St. Louis, MO 401(k) Companies
The Lake St. Louis, MO 401(k) advisors at Correct Capital can help your business implement many different plans through several 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 match 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, 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 funds after preserving 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-effective way to offer their workers retirement benefits. Similar to a traditional 401(k) plan, you may take money out of an employee's paycheck as their contribution. But, the employer must make either:
- An equal contribution of no more than 3% of an employee's earnings; or
- A non-elective contribution of 2% of a worker's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, with the exception 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.
When we first meet with you, we'll get to know your Lake St. Louis, MO business and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Lake St. Louis, MO include:
- Fiduciary Financial Advisor
- 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
The Correct Capital Difference | Lake St. Louis, MO 401(k) Companies
Correct Capital is distinctive among Lake St. Louis, MO 401(k) advisors because we offer the level of individualized care as smaller advisory firms, but pair it with the same knowledge, professionalism, 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 ethical responsibility to do so. Our retirement consultants have been trusted to connect businesses to 401(k) companies for more than 25 years and currently represent over $230 million in total plan assets nationwide. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.