401(k) Companies in Millstadt, IL
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Millstadt, IL. Setting up a 401(k) plan with trusted 401(k) advisors is a wonderful way for small and mid-sized companies in Millstadt, IL to attract and retain employees, incentivize great production, and obtain those much-desired tax breaks. Correct Capital Wealth Management has been introducing companies to trusted 401(k) companies in Millstadt, IL for more than two decades. Call us today at 314-930-401(k) or contact us online to discover more about what Correct Capital can do for your Millstadt, 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 assets held in the United States, according to data from the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than 50% of all companies in the United States with under 50 employees provide a 401(k) plan as an employee benefit, and more than a third have no present aim to do so. Another 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 found that the most frequent reason for employers to inquire about 401(k) companies and provide a plan was to encourage their employees to save responsibly for retirement. In order to do this fruitfully for your best employees, it is important to consult a trusted, independent retirement planning advisory firm like Correct Capital based in Millstadt, IL.
There are a great deal of advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to put forward for you and your employees the retirement solutions that serve your needs and unique circumstances. Specific plans work better for certain employers, and our Millstadt, IL 401(k) advisors help locate the preferred 401(k) company and plan for you and your employees. As an independent advisory firm, there is no restriction to which 401(k) companies we can connect you to . From offering financial planning education, advising 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) advisory services are an invaluable aspect of any 401(k) program.
Advantages of Offering a 401(k) Plan | Millstadt, 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 said that their business was not generating enough profit. But there are countless reasons why implementing a 401(k) plan for your employees may be best for your bottom line in the end. The 401(k) consultants at Correct Capital will put together an extensive guide to the various benefits certain plans 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 found that 55% of Americans anticipated searching for a new job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer offers a defined contribution plan. What better way to hold on to your best employees than letting them know you care about their financial security, even after they are no longer working for you?
Incentivizing Employees | Millstadt, IL 401(k) Companies
Many Millstadt, IL companies offer greater contributions when specific performance goals are met. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an excellent 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 get a tax credit for plan startup expenses if they satisfy three requirements stipulated by the IRS:
- You had 100 or fewer workers who collected a minimum of $5,000 in compensation from you the year prior.
- You had at least one plan participant who was a non-highly compensated employee.
- In the three years prior, you did not already have a retirement plan in place that covered substantially the same employees.
The tax credit is obtainable for up to three years, and there is a further tax credit for adding an automatic enrollment feature to a new or extant 401(k) plan.
Additional Tax Advantages
Other than the startup tax credit, the IRS offers two further tax benefits for having 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.
One of the aspects that sets Correct Capital apart from other 401(k) consultants in Millstadt, IL is that we offer financial planning as a service to your participating employees. Through group education gatherings, we'll make certain your employees recognize the ideal investment opportunities for themselves, understand how your 401(k) plan functions, and appreciate how it's serving them. We can also use 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 employer, we can help them with their 401(k) rollover.
Types of 401(k) Plans | Millstadt, IL 401(k) Companies
The Millstadt, IL 401(k) consultants at Correct Capital can help your companies implement many 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 range of investment options. Employers are able to match what their employees put in. Taxes are deducted when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same traditional plans, with the exception 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 takes funds out after maintaining 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 looking for a cost-effective way to offer their staff retirement benefits. Like a traditional 401(k) plan, you may take money out of an employee's paycheck as their contribution. But, the employer must make either:
- An equal contribution of up to 3% of an employee's earnings; or
- A non-elective contribution of 2% of an employee's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, but the employer must make contributions that are fully vested when made. In return for required contributions, the IRS does not conduct its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Millstadt, IL company and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in Millstadt, IL include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Millstadt, IL 401(k) Companies
Correct Capital is unique among Millstadt, IL 401(k) advisors because we offer the level of personalized attention as smaller advisory firms, but couple it with the same savvy, experience, and connections as larger firms. We offer independent and objective guidance, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and moral 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 throughout the United States. Call us at 314-930-401(k) or contact us online to discuss your 401(k) needs today.