401(k) Companies in O'Fallon, IL

401(k) Companies in O'Fallon, IL A Great 401(k) Plan Benefits You and Your Employees

401(k) Companies in O'Fallon, IL. Establishing a 401(k) plan with trustworthy 401(k) advisors is a wonderful way for small and mid-sized companies in O'Fallon, IL to appeal to and hold onto employees, incentivize great performance, and obtain those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with trusted 401(k) companies in O'Fallon, IL for more than 20 years. Call us today at 314-930-401(k) or contact us online to discover more about how Correct Capital can help your O'Fallon, 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, as reported by 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 less than 50 employees provide a 401(k) plan to their employees, and over 33% have no present intent to do so. A different 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 reported that the most frequent motivation for employers to research 401(k) companies and provide a plan was to encourage their employees to set money aside conscientiously for retirement. In order to do this effectively for your prized employees, it is essential to reach out to a trusted, independent retirement planning advisory firm like Correct Capital based in O'Fallon, IL.

There are a great deal of benefits to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and secure 401(k) companies to put forward for you and your employees the retirement solutions that are in your best interests and individual circumstances. Specific plans work better for certain businesses, 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 restriction to which 401(k) companies we can work with . From offering financial planning education, advising 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 facet of any 401(k) program.

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Advantages of Offering a 401(k) Plan | O'Fallon, IL 401(k) Companies

The advantages of offering retirement planning to workers through 401(k) companies are obvious. Thirty-nine percent of employers who did not offer 401(k) plans gave their reason as being that their company was not bringing in enough revenue. But there are countless reasons why implementing 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 put together a comprehensive guide to the various advantages certain programs will have for you. Among them are:


Recruiting and Retaining Talent | O'Fallon, IL 401(k) Companies

We're going through the Great Resignation; a recent survey stated that 55% of Americans expected to look for a new job in 2021 and 2022. Workers feel 45% more assured about their retirement when their employer offers a retirement plan. What better way to retain your hardest working employees than assuring them that you care about their financial security, even after they are no longer working for you?


Motivating Employees | O'Fallon, IL 401(k) Companies

Many O'Fallon, IL companies give higher contributions when their employees achieve certain performance goals. Incentivizing a 401(k) plan, such as 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 | O'Fallon, IL 401(k) Companies

Small and medium companies are able to receive a tax credit for plan startup costs if they satisfy three requirements stipulated by the IRS:

  1. You had under 100 workers who collected at least $5,000 in compensation from you the year prior.
  2. You had at least one plan participant who was a non-highly compensated employee.
  3. 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 obtainable for a maximum of 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 Benefits

Besides the startup tax credit, the IRS offers two additional tax benefits for implementing a 401(k) plan:

  1. Employer contributions are tax-deductible to the extent that the contributions do not surpass the limits stipulated by Section 404 of the Internal Revenue Code.
  2. Elective deferrals and investment gains are not taxed and have the advantage of tax deferral until distribution.

Correct Capital's financial advisors also offer all-inclusive tax planning services to O'Fallon, IL residents and employers. We'll work to reduce your tax liability as part of our 401(k) services.

Employee Education

One of the facets that makes Correct Capital different from other 401(k) advisors 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 know the best investment opportunities for themselves, are aware of how your 401(k) plan works, and appreciate how it's helping them. We can also have one-on-one meetings to talk over 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 help them with their 401(k) rollover.

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Types of 401(k) Plans | O'Fallon, IL 401(k) Companies

The O'Fallon, IL 401(k) consultants at Correct Capital can help your business set up several different plans through a variety of different 401(k) companies. The most common plans are:

  • Traditional 401(k) Plans: This is an employer-sponsored program that offers a wide array of investment options. Employers may equal what their employees put in. Taxes are taken out 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. Gains earned in the plan, such as interest, dividends, or capital gains, is tax-free when the employee withdraws money 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 want a cost-effective way to offer their staff 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:
    • A matching 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 similar to to regular 401(k)s, with the exception the employer must make contributions that are fully vested when made. In exchange for for required contributions, the IRS does not conduct its annual nondiscrimination tests.

When we first meet with you, we'll gain an understanding of your O'Fallon, IL business and your employee's retirement needs to find the best type of 401(k) plan for you.

Other services we offer in O'Fallon, IL include:

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The Correct Capital Difference | O'Fallon, IL 401(k) Companies

Correct Capital is distinctive among O'Fallon, IL 401(k) advisors because we provide the level of personalized attention as smaller financial firms, but combine it with the same wisdom, professionalism, and partnerships as larger firms. We offer independent and objective counsel, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to introduce businesses to 401(k) companies for more than 25 years 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 discuss your 401(k) needs today.


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