401(k) Companies in Lemay, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Lemay, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a wonderful way for medium and small companies in Lemay, MO to draw and hold onto employees, incentivize great work, and receive those much-needed tax breaks. Correct Capital Wealth Management has been introducing companies to trusted 401(k) companies in Lemay, MO for more than two decades. Call us today at 314-930-401(k) or contact us online to discover more about how Correct Capital can help your Lemay, MO business and your employees succeed.
As of 2020, defined-contribution (DC) plans like 401(k)s constitute $9.9 trillion of the total $32.3 trillion in retirement plan funds held in the United States, according to the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than half of all companies in the United States with less than 50 employees offer a 401(k) plan as an employee benefit, and more than 33% have no present intent to do so. Another study found that a 401(k) plan is the only vehicle many Americans have for putting money aside for retirement.
The J.P. Morgan survey stated that the most frequent incentive for employers to research 401(k) companies and offer a plan was to encourage their employees to set money aside conscientiously for retirement. In order to do this effectively for your best employees, it is essential to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Lemay, MO.
There are various benefits to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and safe 401(k) companies to put forward for you and your employees the retirement solutions that serve your best interests and specific circumstances. Certain plans work better for certain companies, and our Lemay, MO 401(k) advisors help identify the preferred 401(k) company and plan for you and your employees. As independent advisors, there is no restraint to which 401(k) companies we can connect you to . From offering financial planning education, advising individual employees on retirement planning, and assisting you maneuver how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a vital facet of any 401(k) plan.
Benefits of Offering a 401(k) Plan | Lemay, MO 401(k) Companies
The benefits of offering retirement planning to employees through 401(k) companies are evident. Thirty-nine percent of employers who did not offer 401(k) plans stated that their business was not bringing in enough profit. But there are countless reasons why setting up a 401(k) plan for your employees might be best for your bottom line down the road. The 401(k) advisors at Correct Capital will put together an extensive guide to the many benefits certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Lemay, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey discovered that 55% of Americans anticipated searching for a different job in 2021 and 2022. Workers feel 45% more assured about their retirement when their employer provides a 401(k) plan. What better way to hold on to your favorite employees than letting them know you care about their financial well-being, even after they've moved on?
Incentivizing Employees | Lemay, MO 401(k) Companies
Many Lemay, MO employers give increased contributions when specific performance goals are met. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to maintain their production.
Plan Startup Tax Credits | Lemay, MO 401(k) Companies
Small and medium companies are able to receive a tax credit for plan startup costs if they fulfill three requirements stipulated by the IRS:
- You had less than 100 workers who received 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 years prior, you did not already have a retirement plan in place that covered substantially the same employees.
The tax credit is accessible for a maximum of three years, and there is another tax credit for adding an automatic enrollment feature to a new or existing 401(k) plan.
Further Tax Advantages
Apart from the startup tax credit, the IRS offers two additional tax benefits for implementing a 401(k) program:
- Employer contributions are tax-deductible to the extent that the contributions do not exceed the limits set out in Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and have the benefit of tax deferral until distribution.
One of the facets that sets Correct Capital apart from other 401(k) consultants in Lemay, MO is that we offer financial planning as a service to plan participants. With group education meetings, we'll make sure your employees recognize the best investment opportunities for themselves, understand how your 401(k) program works, and understand how it's benefiting them. We can also have one-on-one sessions to go through 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 assist 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 business initiate a variety of different plans through several different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers a range 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 analogous traditional plans, other than the fact that contributions are made with money you have already paid taxes on. Gains made 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 at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are specially for small businesses looking for a cost-efficient way to offer their employees retirement benefits. Like a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. However, the employer must make either:
- An equal contribution of up to 3% of an employee's pay; or
- A non-elective contribution of 2% of an employee's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, other than the fact that the employer is required to make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its yearly 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 offer the best type of 401(k) plan for you.
Other services we offer in Lemay, MO include:
- 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
- Rollover 401(k)
The Correct Capital Difference | Lemay, MO 401(k) Companies
Correct Capital is distinctive among Lemay, MO 401(k) advisors because we provide the degree of personalized attention as smaller advisory firms, but couple it with the same knowledge, experience, and partnerships as larger firms. We provide independent and objective direction, always intended to do what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to introduce companies to 401(k) companies for over two decades and presently 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.