401(k) Companies in Manchester, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Manchester, MO. Initiating a 401(k) plan with dependable 401(k) advisors is a great way for small and mid-sized businesses in Manchester, MO to draw and retain employees, incentivize great production, and receive those much-needed tax breaks. Correct Capital Wealth Management has been connecting businesses with trusted 401(k) companies in Manchester, MO for more than 20 years. Call us today at 314-930-401(k) or contact us online to learn more about how Correct Capital can help your Manchester, MO business and your employees thrive.
As of 2020, defined-contribution (DC) plans such as 401(k)s comprise $9.9 trillion of the total $32.3 trillion in retirement plan assets held in the United States, as reported by 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 less than 50 employees provide a 401(k) plan to their employees, and more than one-third have no present plans to do so. A different study found that a 401(k) plan is the only instrument many Americans have for setting money aside for retirement.
The J.P. Morgan survey stated that the most common motive for employers to explore 401(k) companies and provide a plan was to incentivize their employees to set money aside conscientiously for retirement. In order to do this effectively for your best employees, it is important to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Manchester, MO.
There are numerous advantages to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and secure 401(k) companies to offer you and your employees the retirement solutions that work for your needs and unique situation. Certain plans work better for certain employers, and our Manchester, MO 401(k) advisors help locate the best 401(k) company and plan for you and your employees. As an independent advisory firm, there is no restraint to which 401(k) companies we can connect you to . From offering investment education, counseling individual employees on retirement planning, and assisting you maneuver how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a crucial facet of any 401(k) program.
Benefits of Offering a 401(k) Plan | Manchester, MO 401(k) Companies
The benefits of providing retirement planning to staff 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 earnings. But there are many reasons why implementing a 401(k) plan for your employees could be best for your bottom line down the road. The 401(k) consultants at Correct Capital will compile a comprehensive guide to the various benefits certain plans will have for you. Among them are:
Attracting and Retaining Talent | Manchester, MO 401(k) Companies
We're going through the Great Resignation; a recent survey stated that 55% of Americans expected to look for a new job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer has a defined contribution plan. What better way to hang on to your hardest working employees than assuring them that you care about their financial health, even after they've left the workforce?
Motivating Employees | Manchester, MO 401(k) Companies
Many Manchester, MO businesses offer higher contributions when specific 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 sustain their production.
Plan Startup Tax Credits | Manchester, MO 401(k) Companies
Small and medium companies can get a tax credit for plan startup expenses if they satisfy three requirements stipulated by the IRS:
- You had 100 or fewer employees who collected at least $5,000 in compensation from you the preceding year.
- 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 benefited substantially the same employees.
The tax credit is accessible for up to three years, and there is a different tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Further Tax Benefits
In addition to the startup tax credit, the IRS offers two additional tax benefits for having a 401(k) program:
- Employer contributions are tax-deductible to the extent that the contributions do not surpass the limits set out in Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and have the advantage of tax deferral until distribution.
One of the facets that sets Correct Capital apart from other 401(k) advisors in Manchester, MO is that we offer financial planning as a benefit to your participating employees. Through group education gatherings, we'll ensure your employees know the ideal investment options for themselves, understand how your 401(k) plan works, and appreciate how it's benefiting them. We can also have one-on-one sessions to go through financial portfolio and asset management with individual employees. When you hire a new employee that had a 401(k) plan with their previous company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Manchester, MO 401(k) Companies
The Manchester, MO 401(k) consultants at Correct Capital can help your companies initiate several different plans through a variety of different 401(k) companies. The most frequently used 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, but contributions are made with after-tax dollars. Gains obtained in the plan, such as interest, dividends, or capital gains, is tax-free when the employee withdraws money after continuing 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 want a cost-effective way to offer their employees retirement benefits. Like a traditional 401(k) plan, you can take money out of an employee's paycheck as their contribution. But, the employer must make either:
- An equal contribution of no more than 3% of an employee'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, other than the fact 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 yearly nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Manchester, MO company and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in Manchester, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Manchester, MO 401(k) Companies
Correct Capital stands out among Manchester, MO 401(k) advisors because we provide the degree of personalized care as smaller advisory firms, but pair it with the same savvy, professionalism, and connections as larger firms. We provide independent and objective direction, always geared toward doing what's best for you; 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 over two decades and currently represent over $230 million in total plan assets across the United States. Call us at 314-930-401(k) or contact us online to talk over your 401(k) needs today.