401(k) Companies in Manchester, MO
401(k) Companies in Manchester, MO. Establishing a 401(k) plan with trustworthy 401(k) advisors is a wonderful way for small and mid-sized businesses in Manchester, MO to attract and retain employees, encourage great production, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting businesses with trustworthy 401(k) companies in Manchester, MO for more than two decades. Call us today at 877-930-4015 or contact us online to learn more about what Correct Capital can do for your Manchester, MO business and employees.
As of 2020, defined-contribution (DC) plans like 401(k)s constitute $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 half of all employers in the United States with less than 50 employees offer a retirement plan to their employees, and more than one-third have no present intentions to do so. An additional study found that a 401(k) plan is the only avenue many Americans have for saving for retirement.
The J.P. Morgan survey stated that the most frequent motivation for employers to explore 401(k) companies and offer a plan was to incentivize their employees to save responsibly for retirement. In order to do this effectively for your best employees, it is crucial to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Manchester, MO.
There are countless benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to bring you and your employees the retirement solutions that are in your best interests and specific situation. Specific plans work better for certain employers, and our Manchester, MO 401(k) advisors help identify the best 401(k) company and plan for you and your employees. As independent retirement consultants, there is no restriction to which 401(k) companies we can work with . From offering financial planning education, advising 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 an invaluable facet of any 401(k) plan.
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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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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 apparent. Almost 40% of employers who did not offer 401(k) plans gave their reason as being that their company was not generating enough income. But there are countless reasons why setting up a 401(k) plan for your employees might be best for your bottom line in the end. The 401(k) consultants at Correct Capital will put together an all-inclusive guide to the myriad benefits certain programs 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 reported that 55% of Americans thought they would look for a different job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer provides a defined contribution plan. What better way to keep your favorite employees than assuring them that their financial health is important to you, even after they've left the workforce?
Incentivizing Employees | Manchester, MO 401(k) Companies
Many Manchester, MO employers give increased contributions when their employees achieve particular performance goals. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your best employees motivated to continue their production.
Plan Startup Tax Credits | Manchester, MO 401(k) Companies
Small and medium companies are able to get a tax credit for plan startup costs if they fulfill three requirements stipulated by the IRS:
- You had 100 or fewer employees who received at least $5,000 in compensation from you the year prior.
- 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 an additional tax credit for adding an automatic enrollment feature to a new or extant 401(k) plan.
Additional Tax Advantages
Apart from the startup tax credit, the IRS offers two extra tax benefits for sponsoring a 401(k) program:
- 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 benefit of tax deferral until distribution.
Correct Capital's financial advisors also offer extensive tax planning services to Manchester, MO residents and employers. We'll work to decrease your tax liability as part of our 401(k) services.
Employee Education
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 plan participants. Through group education gatherings, we'll make certain your employees know the best investment opportunities for themselves, understand how your 401(k) plan works, and see how it's helping them. We can also use one-on-one meetings to go through financial portfolio and asset management with individual workers. When a new member joins your team and they had a 401(k) plan with their prior company, we can help them with their 401(k) rollover.
Types of 401(k) Plans | Manchester, MO 401(k) Companies
The Manchester, MO 401(k) advisors at Correct Capital can help your companies initiate 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 numerous investment options. Employers are able to equal their employees' contributions. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same traditional plans, except 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 employee takes money out after continuing the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans exist specifically for small businesses who want a cost-efficient way to offer their employees a retirement plan. Similar to 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 a staff members pay; or
- A non-elective contribution of 2% of an employee's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, however the employer must make contributions that are fully vested when made. In return for required contributions, the IRS does not perform its annual nondiscrimination tests.
In our initial meeting, we'll gain an understanding of your Manchester, MO company and your employee's retirement needs to identify the ideal type of 401(k) plan for you.
Other services we offer in Manchester, MO include:
The Correct Capital Difference | Manchester, MO 401(k) Companies
Correct Capital is distinctive among Manchester, MO 401(k) advisors because we provide the degree of personalized attention as smaller financial firms, but pair it with the same knowledge, professionalism, and partnerships as larger firms. We offer independent and objective counsel, 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 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 go over your 401(k) needs today.
