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. Initiating a 401(k) plan with trusted 401(k) advisors is a great way for medium and small companies in Lake St. Louis, MO to draw and hold onto employees, encourage great production, and receive those much-needed tax breaks. Correct Capital Wealth Management has been connecting businesses with secure 401(k) companies in Lake St. Louis, MO for more than 20 years. Call us today at 877-930-4015 or contact us online to find out more about what Correct Capital can do for your Lake St. Louis, MO business and employees.
As of 2020, defined-contribution (DC) plans like 401(k)s made up $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 offer a retirement plan as an employee benefit, and over 33% 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 stated that the most common motive for employers to inquire about 401(k) companies and provide a plan was to encourage their employees to save conscientiously for retirement. In order to do this effectively for your valued employees, it is essential to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Lake St. Louis, MO.
There are countless advantages to using Correct Capital's 401(k) services. Correct Capital partners with many dependable and secure 401(k) companies to offer you and your employees the retirement solutions that serve your needs and unique situation. Certain plans are more appropriate for certain companies, and our Lake St. Louis, 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 investment education, advising 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) advisory services are an invaluable facet of any 401(k) program.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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Advantages of Offering a 401(k) Plan | Lake St. Louis, MO 401(k) Companies
The advantages of offering retirement planning to workers through 401(k) companies are clear. Thirty-nine percent of employers who did not offer 401(k) plans said that their business was not bringing in enough profit. But there are numerous reasons why initiating a 401(k) plan for your employees may wind up being best for your bottom line. The 401(k) consultants at Correct Capital will compile an all-inclusive guide to the myriad 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 looking for a different job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer provides a retirement plan. What better way to retain your best employees than assuring them that their financial well-being is important to you, even after they've left the workforce?
Motivating Employees | Lake St. Louis, MO 401(k) Companies
Many Lake St. Louis, 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 successful 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 receive a tax credit for plan startup costs if they meet three requirements stipulated by the IRS:
- You had 100 or fewer staff who received a minimum of $5,000 in compensation from you the year prior.
- You had a minimum of 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 obtainable for up to three years, and there is a different tax credit for attaching an automatic enrollment feature to a new or extant 401(k) plan.
Additional Tax Advantages
Besides 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 stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and posses 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 lower your tax liability as part of our 401(k) services.
Employee Education
One of the features that makes Correct Capital different from other 401(k) advisors in Lake St. Louis, MO is that we offer financial planning as a service to your participating staff. Through group education meetings, we'll make sure your employees recognize the ideal investment opportunities for themselves, understand how your 401(k) plan works, and see how it's helping them. We can also have one-on-one sessions to go through financial portfolio and asset management with individual staff. When a new member 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 initiate several different plans through several different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes a range of investment options. Employers can match what their employees put in. Taxes are taken out when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, except that contributions are made with after-tax dollars. Gains earned in the plan, such as interest, dividends, or capital gains, is tax-free when the individual 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 specifically for small businesses who need a cost-efficient way to offer their employees a retirement plan. Similar to a traditional 401(k) plan, you can take money out of an employee's paycheck as their contribution. However, the employer must make either:
- An equal contribution of up to 3% of a worker'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, except that they must include employer contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Lake St. Louis, MO company and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in Lake St. Louis, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | Lake St. Louis, MO 401(k) Companies
Correct Capital stands out among Lake St. Louis, MO 401(k) advisors because we provide the level of personalized care as smaller financial firms, but couple it with the same wisdom, professionalism, and connections as larger firms. We offer independent and objective counsel, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to introduce businesses to 401(k) companies for over 25 years and currently represent over $230 million in total plan assets throughout the United States. Call us at 877-930-4015 or contact us online to discuss your 401(k) needs today.