401(k) Companies in O'Fallon, IL
401(k) Companies in O'Fallon, IL. Initiating a 401(k) plan with trusted 401(k) advisors is a great way for small and mid-sized companies in O'Fallon, IL to draw and retain employees, encourage great work, and get those much-desired tax breaks. Correct Capital Wealth Management has been connecting businesses with dependable 401(k) companies in O'Fallon, IL for over two decades. Call us today at 877-930-4015 or contact us online to discover more about what Correct Capital can do for your O'Fallon, IL business and employees.
As of 2020, defined-contribution (DC) plans like 401(k)s accounted for $9.9 trillion of the total $32.3 trillion in retirement plan capital held in the United States, as reported by 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 less than 50 employees provide a retirement plan to their employees, and more than a third have no present intent to do so. An additional study found that a 401(k) plan is the only instrument many Americans have for saving for retirement.
The J.P. Morgan survey stated that the most frequent incentive for employers to explore 401(k) companies and provide a plan was to incentivize their employees to save responsibly for retirement. In order to do this fruitfully for your valued employees, it is important to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in O'Fallon, IL.
There are countless benefits to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and safe 401(k) companies to put forward for you and your employees the retirement solutions that serve your needs and individual situation. Certain plans work better for certain employers, and our O'Fallon, IL 401(k) advisors help determine the preferred 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, guiding individual employees on retirement planning, and helping you understand how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are an invaluable facet of any 401(k) plan.
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Benefits of Offering a 401(k) Plan | O'Fallon, IL 401(k) Companies
The benefits of offering retirement planning to workers through 401(k) companies are evident. Thirty-nine percent of employers who did not offer 401(k) plans said that their reason was that their company was not bringing in enough revenue. But there are a lot of reasons why implementing a 401(k) plan for your employees may be best for your bottom line in the end. The 401(k) advisors at Correct Capital will put together an all-inclusive guide to the myriad benefits certain plans will have for you. Among them are:
Attracting and Retaining Talent | O'Fallon, IL 401(k) Companies
We're going through the Great Resignation; a recent survey found that 55% of Americans thought they would look for a different job in 2021 and 2022. Workers are 45% more assured about their retirement when their employer provides a 401(k) plan. What better way to hold on to your favorite employees than assuring them that you care about their financial security, even after they've moved on?
Motivating Employees | O'Fallon, IL 401(k) Companies
Many O'Fallon, IL businesses give greater contributions when their employees accomplish particular performance goals. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be a great way to keep your employees' motivation high and to maintain their production.
Plan Startup Tax Credits | O'Fallon, IL 401(k) Companies
Small and medium companies can get a tax credit for plan startup expenses if they fulfill three requirements dictated by the IRS:
- You had 100 or fewer workers 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.
- In the three years prior, you did not already have a retirement plan in place that benefited substantially the same employees.
The tax credit is accessible for a maximum of three years, and there is an additional tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.
Further Tax Advantages
Besides the startup tax credit, the IRS offers two other tax benefits for implementing a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not exceed the limits dictated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
Correct Capital's financial advisors also offer comprehensive tax planning services to O'Fallon, IL companies. We'll strive to reduce your tax liability as part of our 401(k) services.
Employee Education
One of the features that makes Correct Capital different from other 401(k) consultants in O'Fallon, IL is that we offer financial planning as a perk to your participating staff. With group education gatherings, we'll make sure your employees understand the ideal investment opportunities for themselves, understand how your 401(k) plan functions, and understand how it's benefiting them. We can also use one-on-one meetings to talk over financial portfolio and asset management with individual staff. When you hire a new employee that had a 401(k) plan with their prior employer, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | O'Fallon, IL 401(k) Companies
The O'Fallon, IL 401(k) advisors at Correct Capital can help your business implement many different plans through several different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that includes a range 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 analogous traditional plans, except that contributions are made with money you have already paid taxes on. Income obtained in the plan, such as interest, dividends, or capital gains, is tax-free when the individual withdraws funds after continuing the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans are specifically for small businesses who want a cost-effective way to offer their employees retirement benefits. Like a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- A matching contribution of up to 3% of a worker's earnings; or
- A non-elective contribution of 2% of a worker's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, but they must include employer contributions that are fully vested when made. In return for required contributions, the IRS does not perform its yearly nondiscrimination tests.
When we first meet with you, we'll get to know your O'Fallon, IL business and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in O'Fallon, IL include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | O'Fallon, IL 401(k) Companies
Correct Capital is distinctive among O'Fallon, IL 401(k) advisors because we offer the level of individualized attention as smaller financial firms, but pair it with the same savvy, accomplishment, and partnerships as larger firms. We offer independent and objective guidance, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and ethical obligation to do so. Our retirement consultants have been trusted to introduce employers to 401(k) companies for more than two decades and presently represent over $230 million in total plan assets nationwide. Call us at 877-930-4015 or contact us online to talk over your 401(k) needs today.
