401(k) Companies in Lemay, MO
401(k) Companies in Lemay, MO. Initiating a 401(k) plan with dependable 401(k) advisors is a great way for medium and small companies in Lemay, MO to appeal to and hold onto employees, incentivize great work, and obtain those much-desired tax breaks. Correct Capital Wealth Management has been connecting businesses with trusted 401(k) companies in Lemay, MO for over two decades. Call us today at 877-930-4015 or contact us online to learn more about what Correct Capital can do for your Lemay, MO business and employees.
As of 2020, defined-contribution (DC) plans such as 401(k)s constitute $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 half of all businesses in the United States with less than 50 employees provide a 401(k) plan to their employees, and more than a third have no current 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 common incentive for employers to explore 401(k) companies and offer a plan was to encourage their employees to save conscientiously for retirement. In order to do this fruitfully for your prized employees, it is critical to reach out to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Lemay, MO.
There are a great deal of benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and secure 401(k) companies to bring you and your employees the retirement solutions that serve your needs and unique circumstances. Specific plans work better for certain companies, and our Lemay, MO 401(k) advisors help identify the best 401(k) company and plan for you and your employees. As an independent advisory firm, there is no restriction to which 401(k) companies we can connect you to . From offering financial planning education, guiding individual employees on retirement planning, and helping you understand how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a vital 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 | Lemay, MO 401(k) Companies
The advantages of offering retirement planning to staff through 401(k) companies are apparent. Almost 40% of employers who did not offer 401(k) plans said that their reason was that their company was not generating sufficient earnings. But there are a lot of reasons why setting up a 401(k) plan for your employees may be best for your bottom line in the end. The 401(k) consultants at Correct Capital will compile an extensive guide to the many benefits certain programs will have for you. Among them are:
Attracting and Retaining Talent | Lemay, MO 401(k) Companies
We're living through the Great Resignation; a recent survey reported that 55% of Americans expected to search for a new job in 2021 and 2022. Workers are 45% more at-ease about their retirement when their employer offers a 401(k) plan. What better way to hang on to your best employees than assuring them that their financial security matters to you, even after they've moved on?
Motivating Employees | Lemay, MO 401(k) Companies
Many Lemay, MO companies give increased contributions when certain performance goals are met. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be a successful way to keep your best employees motivated to continue their production.
Plan Startup Tax Credits | Lemay, MO 401(k) Companies
Small and medium companies are able to collect a tax credit for plan startup costs if they satisfy three requirements laid out by the IRS:
- You had under 100 employees who collected a minimum of $5,000 in compensation from you the previous year.
- You had a minimum of 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 available for a maximum of three years, and there is a different tax credit for attaching an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Benefits
Other than the startup tax credit, the IRS offers two added tax benefits for sponsoring a 401(k) plan:
- 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 posses tax deferral until distribution.
Correct Capital's financial advisors also offer extensive tax planning services to Lemay, MO companies. We'll work to decrease 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) consultants in Lemay, MO is that we offer financial planning as a benefit to your participating employees. With group education gatherings, we'll ensure your employees recognize the ideal investment opportunities for themselves, are aware of how your 401(k) program works, and see how it's benefiting them. We can also use one-on-one sessions to discuss financial portfolio and asset management with individual staff. When you hire a new employee that had a 401(k) plan with their old employer, we can help them with their 401(k) rollover.
Types of 401(k) Plans | Lemay, MO 401(k) Companies
The Lemay, MO 401(k) consultants at Correct Capital can help your companies set up 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 plan that offers a wide array of investment options. Employers may equal their employees' contributions. Taxes are taken out when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous 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 individual withdraws money after maintaining 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 staff 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 up to 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 similar to to regular 401(k)s, except that the employer is required to make contributions that are fully vested when made. In return for required contributions, the IRS does not carry out its annual nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Lemay, MO business and your employee's retirement needs to find the best type of 401(k) plan for you.
Other services we offer in Lemay, MO include:
The Correct Capital Difference | Lemay, MO 401(k) Companies
Correct Capital stands out among Lemay, MO 401(k) advisors because we provide the degree of individualized care as smaller advisory firms, but combine it with the same knowledge, accomplishment, and partnerships as larger firms. We provide independent and objective counsel, always geared toward doing what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and ethical obligation to do so. Our retirement consultants have been trusted to connect employers 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 talk over your 401(k) needs today.
