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 trusted 401(k) advisors is an excellent way for small and mid-sized businesses in Manchester, MO to appeal to and hold onto employees, incentivize great production, and receive those much-desired tax breaks. Correct Capital Wealth Management has been introducing businesses to dependable 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 what Correct Capital can do for your Manchester, MO business and employees.
As of 2020, defined-contribution (DC) plans such as 401(k)s made up $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 companies in the United States with under 50 employees offer a retirement plan to their employees, and over a third have no current aim to do so. Another study found that a 401(k) plan is the only avenue many Americans have for setting money aside for retirement.
The J.P. Morgan survey reported that the most frequent reason for employers to inquire about 401(k) companies and offer a plan was to incentivize their employees to set money aside conscientiously for retirement. In order to do this fruitfully for your best employees, it is important to reach out to a trusted, independent retirement planning advisory firm like Correct Capital based in Manchester, MO.
There are a great deal of benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and safe 401(k) companies to bring you and your employees the retirement solutions that are in your needs and unique circumstances. Certain plans are more apt for certain companies, and our Manchester, MO 401(k) advisors help recognize the best 401(k) company and plan for you and your employees. As independent advisors, there is no limit to which 401(k) companies we can work with . From offering financial planning education, guiding individual employees on retirement planning, and assisting you navigate 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) plan.
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. Almost 40% of employers who did not offer 401(k) plans gave their reason as being that their company was not bringing in sufficient profit. But there are countless reasons why initiating a 401(k) plan for your employees might wind up being best for your bottom line. The 401(k) advisors at Correct Capital will compile a comprehensive guide to the various benefits certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Manchester, MO 401(k) Companies
We're living through the Great Resignation; a recent survey stated that 55% of Americans anticipated looking for a new job in 2021 and 2022. Workers are 45% more assured about their retirement when their employer offers a 401(k) plan. What better way to retain your favorite employees than assuring them that their financial health is important to you, even after they are no longer working for you?
Incentivizing Employees | Manchester, MO 401(k) Companies
Many Manchester, MO companies give increased contributions when specific performance goals are met. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an effective way to keep your employees' motivation high and to keep up 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 expenses if they fulfill 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 year prior.
- You had a minimum of one plan participant who was a non-highly compensated employee.
- Your business 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 up to three years, and there is another tax credit for attaching an automatic enrollment feature to a new or extant 401(k) plan.
Additional Tax Benefits
Besides the startup tax credit, the IRS offers two further tax benefits for having a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not surpass the limits stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and benefit from tax deferral until distribution.
One of the features 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. With group education gatherings, we'll make certain your employees understand the best investment options for themselves, know how your 401(k) program functions, and understand how it's helping them. We can also have one-on-one sessions to discuss financial portfolio and asset management with individual employees. When a new employer joins your team and they had a 401(k) plan with their old 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) advisors at Correct Capital can help your companies set up several different plans through many 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 are able to equal what their employees put in. Taxes are taken out when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, however contributions are made with money you have already paid taxes on. Income earned in the plan, such as interest, dividends, or capital gains, is tax-free when the employee takes money out after preserving 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 looking for a cost-effective way to offer their staff a retirement plan. Like a traditional 401(k) plan, you can take money out of an employee's paycheck as their contribution. However, the employer must make either:
- A matching contribution of no more than 3% of a staff members pay; or
- A non-elective contribution of 2% of a worker's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, with the exception the employer is required to make contributions that are fully vested when made. In return for required contributions, the IRS does not perform its yearly nondiscrimination tests.
In our first meeting, we'll get to know your Manchester, MO business and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Manchester, MO include:
- Fiduciary Financial Advisor
- 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
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 savvy, professionalism, and connections as larger firms. We offer independent and objective guidance, 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 introduce companies to 401(k) companies for over two decades and at present we represent over $230 million in total plan assets throughout the United States. Call us at 314-930-401(k) or contact us online to talk over your 401(k) needs today.