401(k) Companies in Madison County, IL
401(k) Companies in Madison County, IL. Establishing a 401(k) plan with dependable 401(k) advisors is a great way for small and mid-sized businesses in Madison County, IL to draw and retain employees, incentivize great performance, and receive those much-needed tax breaks. Correct Capital Wealth Management has been connecting employers with trustworthy 401(k) companies in Madison County, IL 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 Madison County, IL 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 capital held in the United States, according to 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 less than 50 employees provide a retirement plan as an employee benefit, and more than a third have no current plans to do so. A further 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 common motivation for employers to inquire about 401(k) companies and provide a plan was to encourage their employees to set money aside responsibly for retirement. In order to do this successfully for your best employees, it is crucial to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in Madison County, IL.
There are countless advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to offer you and your employees the retirement solutions that work for your needs and individual circumstances. Certain plans are more appropriate for certain employers, and our Madison County, IL 401(k) advisors help determine the best 401(k) company and plan for you and your employees. As independent advisors, there is no restriction to which 401(k) companies we can work with . From offering financial planning education, counseling 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) consultant services are an indispensable aspect of any 401(k) program.
Advantages of Offering a 401(k) Plan | Madison County, IL 401(k) Companies
The benefits of offering retirement planning to staff through 401(k) companies are clear. Almost 40% of employers who did not offer 401(k) plans gave their reason as being that their business was not bringing in enough income. But there are many reasons why initiating a 401(k) plan for your employees may wind up being best for your bottom line. The 401(k) advisors at Correct Capital will put together an all-inclusive guide to the many advantages certain programs will have for you. Among them are:
Attracting and Retaining Talent | Madison County, IL 401(k) Companies
We're going through the Great Resignation; a recent survey discovered that 55% of Americans thought they would search for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer provides a retirement plan. What better way to hold on to your best employees than assuring them that their financial security is important to you, even after they've left the workforce?
Incentivizing Employees | Madison County, IL 401(k) Companies
Many Madison County, IL businesses give greater contributions when their employees achieve particular performance goals. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be a great way to keep your employees' motivation high and to keep up their performance.
Plan Startup Tax Credits | Madison County, IL 401(k) Companies
Small and medium companies can obtain a tax credit for plan startup costs if they satisfy three requirements laid out by the IRS:
- You had 100 or fewer staff who received 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 accessible for a maximum of 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 further tax benefits for having a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not surpass the limits stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and have the advantage of tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to Madison County, IL companies. We'll work to lower your tax liability as part of our 401(k) services.
Employee Education
One of the facets that makes Correct Capital different from other 401(k) advisors in Madison County, IL is that we offer financial planning as a perk to your participating employees. Through group education meetings, we'll ensure your employees understand the ideal investment options for themselves, know how your 401(k) program works, and appreciate how it's benefiting them. We can also have one-on-one meetings to discuss financial portfolio and asset management with individual staff. When a new member joins your team and they had a 401(k) plan with their previous company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Madison County, IL 401(k) Companies
The Madison County, IL 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 includes a wide array of investment options. Employers are able to match what their employees put in. Taxes are paid when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, but contributions are made with after-tax dollars. Income made in the plan, such as interest, dividends, or capital gains, is tax-free when the employee withdraws funds after continuing the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are in place specially for small businesses looking for a cost-efficient way to offer their staff a retirement plan. Like a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- A matching contribution of no more than 3% of a staff members earnings; or
- A non-elective contribution of 2% of a worker's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, but they must include employer contributions that are fully vested when made. In consideration of for required contributions, the IRS does not conduct its yearly nondiscrimination tests.
In our first meeting, we'll gain an understanding of your Madison County, IL business and your employee's retirement needs to identify the ideal type of 401(k) plan for you.
Other services we offer in Madison County, IL include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
The Correct Capital Difference | Madison County, IL 401(k) Companies
Correct Capital stands out among Madison County, IL 401(k) advisors because we offer the level of individualized attention as smaller financial firms, but couple it with the same knowledge, accomplishment, and partnerships as larger firms. We provide independent and objective counsel, always intended to do what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and moral responsibility to do so. Our retirement consultants have been trusted to connect businesses to 401(k) companies for over two decades and currently represent over $230 million in total plan assets nationwide. Call us at 877-930-4015 or contact us online to talk over your 401(k) needs today.
