401(k) Companies in Millstadt, IL
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Millstadt, IL. Establishing a 401(k) plan with trustworthy 401(k) advisors is a great way for medium and small companies in Millstadt, IL to appeal to and retain employees, encourage great performance, and get those much-needed tax breaks. Correct Capital Wealth Management has been introducing companies to trusted 401(k) companies in Millstadt, IL for more than 20 years. Call us today at 314-930-401(k) or contact us online to find out more about how Correct Capital can help your Millstadt, IL business and your employees succeed.
As of 2020, defined-contribution (DC) plans like 401(k)s comprise $9.9 trillion of the total $32.3 trillion in retirement plan funds 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 half of all businesses in the United States with under 50 employees provide a retirement plan to their employees, and more than 33% have no current intent to do so. An additional 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 found that the most frequent motive for employers to research 401(k) companies and offer a plan was to encourage their employees to set money aside responsibly for retirement. In order to do this fruitfully for your valued employees, it is crucial to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Millstadt, IL.
There are countless advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and safe 401(k) companies to offer you and your employees the retirement solutions that serve your needs and individual situation. Specific plans work better for certain businesses, and our Millstadt, IL 401(k) advisors help locate the best 401(k) company and plan for you and your employees. As independent retirement consultants, there is no restraint to which 401(k) companies we can work with . 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 vital part of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Millstadt, IL 401(k) Companies
The advantages of providing retirement planning to workers through 401(k) companies are apparent. Thirty-nine percent of employers who did not offer 401(k) plans said that their reason was that their company was not generating sufficient revenue. But there are a lot of reasons why initiating a 401(k) plan for your employees may be best for your bottom line down the road. The 401(k) advisors at Correct Capital will put together an extensive guide to the various advantages certain programs will have for you. Among them are:
Attracting and Retaining Talent | Millstadt, IL 401(k) Companies
We're in the middle of the Great Resignation; a recent survey discovered that 55% of Americans expected to look for a different job in 2021 and 2022. Workers are 45% more at-ease about their retirement when their employer offers a defined contribution plan. What better way to keep your favorite employees than letting them know you care about their financial health, even after they are no longer working for you?
Incentivizing Employees | Millstadt, IL 401(k) Companies
Many Millstadt, IL employers give greater contributions when specific performance goals are met. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to maintain their performance.
Plan Startup Tax Credits | Millstadt, IL 401(k) Companies
Small and medium companies are able to get a tax credit for plan startup expenses if they fulfill three requirements dictated by the IRS:
- You had 100 or fewer employees who were paid 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 covering substantially the same employees during the three years preceding the year for which you are claiming credit.
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 401(k) plan or one you already had.
Further Tax Benefits
Other than the startup tax credit, the IRS offers two added tax benefits for implementing a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not go over 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 Millstadt, IL companies. We'll work to decrease your tax liability as part of our 401(k) services.
One of the features 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. With group education meetings, we'll make sure your employees recognize the best investment options for themselves, are aware of how your 401(k) plan functions, and understand how it's benefiting them. We can also have one-on-one meetings 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 offer assistance 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 set up a variety of different plans through several different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes a range of investment options. Employers can equal their employees' contributions. Taxes are paid when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, other than the fact that 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 funds out after preserving the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are in place specifically for small businesses who need a cost-efficient way to offer their workers a retirement plan. Like 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 no more than 3% of a staff members earnings; or
- A non-elective contribution of 2% of an employee's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, however they must include employer contributions that are fully vested when made. In return for required contributions, the IRS does not carry out its annual nondiscrimination tests.
In our initial meeting, we'll gain an understanding of your Millstadt, IL business and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in Millstadt, IL include:
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
- Social Security Consultants Near Me
- Retirement Calculator
- Retirement Planning
- Rollover 401(k)
- Wealth Management
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 individualized attention as smaller advisory firms, but couple it with the same wisdom, professionalism, and connections as larger firms. We offer independent and objective counsel, always intended to do what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and moral responsibility to do so. Our retirement consultants have been trusted to connect companies to 401(k) companies for more than two decades and presently represent over $230 million in total plan assets nationwide. Call us at 314-930-401(k) or contact us online to discuss your 401(k) needs today.