401(k) Companies in Oakland, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Oakland, MO. Setting up a 401(k) plan with trustworthy 401(k) advisors is an excellent way for small and mid-sized businesses in Oakland, MO to attract and retain employees, incentivize great work, and receive those much-needed tax breaks. Correct Capital Wealth Management has been connecting businesses with trusted 401(k) companies in Oakland, MO for more than two decades. Call us today at 314-930-401(k) or contact us online to find out more about what Correct Capital can do for your Oakland, MO business and employees.
As of 2020, defined-contribution (DC) plans such as 401(k)s comprise $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 half of all companies in the United States with less than 50 employees provide a retirement plan as an employee benefit, and more than 33% have no current intentions to do so. Another study found that a 401(k) plan is the only instrument many Americans have for putting money aside for retirement.
The J.P. Morgan survey stated that the most common motive for employers to explore 401(k) companies and offer a plan was to incentivize their employees to put money aside responsibly for retirement. In order to do this effectively for your best employees, it is critical to reach out to a trusted, independent retirement planning advisory firm like Correct Capital based in Oakland, MO.
There are countless advantages to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and safe 401(k) companies to offer you and your employees the retirement solutions that work for your needs and unique circumstances. Certain plans work better for certain employers, and our Oakland, MO 401(k) advisors help locate the best 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, guiding individual employees on retirement planning, and assisting you maneuver how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an indispensable aspect of any 401(k) program.
Advantages of Offering a 401(k) Plan | Oakland, MO 401(k) Companies
The advantages of offering retirement planning to employees through 401(k) companies are clear. Almost 40% of employers who did not offer 401(k) plans stated that their business was not bringing in sufficient income. But there are a lot of 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 compile an extensive guide to the myriad advantages certain plans will have for you. Among them are:
Attracting and Retaining Talent | Oakland, MO 401(k) Companies
We're living through the Great Resignation; a recent survey found 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 offers a defined contribution plan. What better way to hold on to your hardest working employees than assuring them that their financial health is important to you, even after they are no longer working for you?
Incentivizing Employees | Oakland, MO 401(k) Companies
Many Oakland, MO employers offer greater contributions when specific performance goals are met. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be a great way to keep your employees' motivation high and to continue their production.
Plan Startup Tax Credits | Oakland, MO 401(k) Companies
Small and medium companies are able to collect a tax credit for plan startup expenses if they fulfill three requirements laid out by the IRS:
- You had under 100 employees who received at least $5,000 in compensation from you the previous year.
- You had at least 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 covered substantially the same employees.
The tax credit is obtainable for a maximum of three years, and there is a different tax credit for attaching an automatic enrollment feature to a new or extant 401(k) plan.
Additional Tax Advantages
In addition to the startup tax credit, the IRS offers two additional tax benefits for having a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not go over the limits dictated 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 Oakland, MO is that we offer financial planning as a benefit to plan participants. Through group education gatherings, we'll make certain your employees recognize the ideal investment opportunities for themselves, are aware of how your 401(k) plan functions, and understand how it's benefiting them. We can also use one-on-one sessions to discuss financial portfolio and asset management with individual workers. When you hire a new employee that had a 401(k) plan with their previous company, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | Oakland, MO 401(k) Companies
The Oakland, MO 401(k) consultants at Correct Capital can help your business set up a variety of different plans through many different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes numerous investment options. Employers may equal their employees' contributions. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, except that contributions are made with money you have already paid taxes on. Gains 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 are in place specially for small businesses who need a cost-effective way to offer their workers retirement benefits. 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:
- A matching contribution of no more than 3% of an employee's pay; 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, but they must include employer contributions that are fully vested when made. In consideration of for required contributions, the IRS does not conduct its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Oakland, MO company and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in Oakland, MO include:
- 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
- Rollover 401(k)
The Correct Capital Difference | Oakland, MO 401(k) Companies
Correct Capital is distinctive among Oakland, MO 401(k) advisors because we offer the degree of individualized care as smaller financial firms, but combine it with the same knowledge, professionalism, 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 ethical responsibility 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 nationwide. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.