401(k) Companies in Millstadt, IL
401(k) Companies in Millstadt, IL. Setting up a 401(k) plan with trusted 401(k) advisors is an excellent way for medium and small businesses in Millstadt, IL to attract and hold onto employees, incentivize great performance, and get those much-desired tax breaks. Correct Capital Wealth Management has been connecting companies with dependable 401(k) companies in Millstadt, IL for more than 20 years. Call us today at 877-930-4015 or contact us online to find out more about how Correct Capital can help your Millstadt, IL business and your employees prosper.
As of 2020, defined-contribution (DC) plans like 401(k)s made up $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 50% of all employers in the United States with under 50 employees provide a 401(k) plan as an employee benefit, and over a third have no present aim to do so. A different study found that a 401(k) plan is the only vehicle many Americans have for saving for retirement.
The J.P. Morgan survey reported that the most common incentive for employers to explore 401(k) companies and provide a plan was to incentivize their employees to save conscientiously for retirement. In order to do this successfully for your prized employees, it is essential to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Millstadt, IL.
There are a great deal of benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and secure 401(k) companies to bring you and your employees the retirement solutions that are in your best interests and individual circumstances. Specific plans are more appropriate for certain employers, and our Millstadt, IL 401(k) advisors help determine the preferred 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 investment education, counseling individual employees on retirement planning, and assisting you understand how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a vital part of any 401(k) plan.
Benefits of Offering a 401(k) Plan | Millstadt, IL 401(k) Companies
The advantages of offering retirement planning to workers through 401(k) companies are clear. Almost 40% of employers who did not offer 401(k) plans stated that their business was not generating sufficient income. But there are many reasons why setting up a 401(k) plan for your employees could be best for your bottom line down the road. The 401(k) advisors at Correct Capital will put together an all-inclusive guide to the myriad advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Millstadt, IL 401(k) Companies
We're going through the Great Resignation; a recent survey stated that 55% of Americans anticipated looking for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer has a 401(k) plan. What better way to hang on to your best employees than assuring them that you care about their financial security, even after they are no longer working for you?
Motivating Employees | Millstadt, IL 401(k) Companies
Many Millstadt, IL companies give increased contributions when their employees reqach specific performance goals. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be a successful way to keep your employees' motivation high and to continue their production.
Plan Startup Tax Credits | Millstadt, IL 401(k) Companies
Small and medium companies can receive a tax credit for plan startup costs if they fulfill three requirements laid out by the IRS:
- You had less than 100 staff who were paid a minimum of $5,000 in compensation from you the preceding year.
- You had at least 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 available 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 Advantages
Apart from the startup tax credit, the IRS offers two further tax benefits for sponsoring a 401(k) program:
- Employer contributions are tax-deductible to the extent that the contributions do not go over the limits dictated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and posses tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to Millstadt, IL companies. We'll work to decrease your tax liability as part of our 401(k) services.
Employee Education
One of the aspects that makes Correct Capital different from other 401(k) consultants in Millstadt, IL is that we offer financial planning as a perk to your participating staff. Through group education gatherings, we'll make certain your employees know the best investment opportunities for themselves, are aware of how your 401(k) program works, and appreciate how it's helping 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 company, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | Millstadt, IL 401(k) Companies
The Millstadt, IL 401(k) advisors at Correct Capital can help your companies initiate a variety of 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 plan that offers a range of investment options. Employers may match their employees' contributions. Taxes are paid 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. Income obtained 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 at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are specially for small businesses who want a cost-efficient way to offer their workers a retirement plan. Similar to 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 a staff members earnings; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same 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 perform its annual nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Millstadt, IL company and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Millstadt, 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 | Millstadt, IL 401(k) Companies
Correct Capital is unique among Millstadt, IL 401(k) advisors because we provide the degree of personalized care as smaller advisory firms, but combine it with the same savvy, experience, and partnerships as larger firms. We provide independent and objective direction, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to connect businesses 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 877-930-4015 or contact us online to talk over your 401(k) needs today.
