401(k) Companies in Lake St. Louis, MO

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 small and mid-sized businesses in Lake St. Louis, MO to attract and hold onto employees, encourage great performance, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been connecting companies with trustworthy 401(k) companies in Lake St. Louis, MO for more than 20 years. Call us today at 314-930-401(k) or contact us online to discover more about how Correct Capital can help your Lake St. Louis, MO business and your employees succeed.

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 funds 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 employers in the United States with under 50 employees offer a 401(k) plan as an employee benefit, and more than one-third have no current intentions to do so. Another study found that a 401(k) plan is the only avenue many Americans have for putting money aside for retirement.

The J.P. Morgan survey found that the most frequent incentive 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 fruitfully for your best employees, it is critical to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Lake St. Louis, MO.

There are a great deal of advantages to using 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 best interests and individual situation. Specific plans work better for certain businesses, and our Lake St. Louis, MO 401(k) advisors help identify the preferred 401(k) company and plan for you and your employees. As an independent advisory firm, there is no limit to which 401(k) companies we can work with . From offering investment education, counseling individual employees on retirement planning, and helping you maneuver 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) plan.

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Benefits 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. Almost 40% of employers who did not offer 401(k) plans said that their company was not generating enough income. But there are a lot of reasons why setting up a 401(k) plan for your employees could wind up being best for your bottom line. The 401(k) consultants at Correct Capital will compile a comprehensive guide to the myriad benefits certain programs will have for you. Among them are:

Attracting and Retaining Talent | Lake St. Louis, MO 401(k) Companies

We're living through the Great Resignation; a recent survey stated that 55% of Americans expected to look for a different job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer offers a 401(k) plan. What better way to retain your hardest working employees than assuring them that their financial health matters to you, even after they are no longer working for you?

Motivating Employees | Lake St. Louis, MO 401(k) Companies

Many Lake St. Louis, MO businesses give greater contributions when their employees accomplish specific performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to continue their production.

Plan Startup Tax Credits | Lake St. Louis, MO 401(k) Companies

Small and medium companies can get a tax credit for plan startup costs if they satisfy three requirements dictated by the IRS:

  1. You had less than 100 workers who were paid a minimum of $5,000 in compensation from you the preceding year.
  2. You had at least one plan participant who was a non-highly compensated employee.
  3. Your business did not already have a retirement plan covering substantially the same employees during the three years preceding the year for which you are claiming credit.

The tax credit is obtainable for a maximum of three years, and there is another tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.

Additional Tax Advantages

In addition to the startup tax credit, the IRS offers two additional tax benefits for sponsoring a 401(k) program:

  1. Employer contributions are tax-deductible to the extent that the contributions do not go over the limits dictated by Section 404 of the Internal Revenue Code.
  2. Elective deferrals and investment gains are not taxed and have the advantage of tax deferral until distribution.

Correct Capital's financial advisors also offer comprehensive tax planning services to Lake St. Louis, MO businesses. We'll work to lower your tax liability as part of our 401(k) services.

Employee Education

One of the aspects that sets Correct Capital apart from other 401(k) advisors in Lake St. Louis, MO is that we offer financial planning as a perk to your participating staff. With group education gatherings, we'll make sure your employees understand the ideal investment opportunities for themselves, understand how your 401(k) plan works, and recognize how it's benefiting them. We can also use one-on-one sessions to discuss financial portfolio and asset management with individual workers. When you hire a new employee that had a 401(k) plan with their previous company, we can help them with their 401(k) rollover.

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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 companies implement a variety of different plans through several different 401(k) companies. The most common plans are:

  • Traditional 401(k) Plans: This is an employer-sponsored program that offers a wide array of investment options. Employers are able to match 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, however contributions are made with money you have already paid taxes on. Income made in the plan, such as interest, dividends, or capital gains, is tax-free when the individual takes money out after maintaining the account for 5 years and they are at least 59-½ years old.
  • SIMPLE 401(k) Plans: These plans exist specifically for small businesses who need a cost-efficient way to offer their staff retirement benefits. Like 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 worker's earnings.
  • Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, with the exception the employer must make contributions that are fully vested when made. In return for required contributions, the IRS does not conduct its yearly nondiscrimination tests.

In our initial meeting, we'll get to know your Lake St. Louis, MO company 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:

401(k) Advising Lake St. Louis, MO | 401(k) Companies | Retirement Planning Near Lake St. Louis

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 degree of individualized attention as smaller financial firms, but combine it with the same wisdom, accomplishment, and connections as larger firms. We offer independent and objective direction, always with your best interest in mind; 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 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 talk over your 401(k) needs today.

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