401(k) Companies in O'Fallon, MO

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

401(k) Companies in O'Fallon, MO. Setting up a 401(k) plan with dependable 401(k) advisors is a great way for small and mid-sized companies in O'Fallon, MO to draw and hold onto employees, incentivize great work, and get those much-desired tax breaks. Correct Capital Wealth Management has been connecting companies with dependable 401(k) companies in O'Fallon, MO for over 20 years. Call us today at 314-930-401(k) or contact us online to discover more about what Correct Capital can do for your O'Fallon, MO 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 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 businesses in the United States with less than 50 employees provide a retirement plan as an employee benefit, and more than one-third have no current intent to do so. A different study found that a 401(k) plan is the only instrument many Americans have for saving for retirement.

The J.P. Morgan survey reported that the most common motivation for employers to inquire about 401(k) companies and offer a plan was to incentivize their employees to save responsibly for retirement. In order to do this successfully for your prized employees, it is important to reach out to a trustworthy, independent retirement planning advisory firm like Correct Capital based in O'Fallon, MO.

There are a great deal of advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and stable 401(k) companies to put forward for you and your employees the retirement solutions that serve your best interests and unique situation. Certain plans work better for certain companies, and our O'Fallon, MO 401(k) advisors help locate the preferred 401(k) company and plan for you and your employees. As independent advisors, there is no restraint to which 401(k) companies we can work with . From offering investment education, counseling individual employees on retirement planning, and helping you understand how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an invaluable part of any 401(k) plan.

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Benefits of Offering a 401(k) Plan | O'Fallon, MO 401(k) Companies

The benefits of providing retirement planning to employees through 401(k) companies are apparent. Thirty-nine percent of employers who did not offer 401(k) plans stated that their company was not bringing in enough profit. But there are a lot of reasons why setting up a 401(k) plan for your employees may be best for your bottom line down the road. The 401(k) consultants at Correct Capital will compile a comprehensive guide to the many benefits certain programs will have for you. Among them are:

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

We're in the middle of the Great Resignation; a recent survey reported that 55% of Americans anticipated searching for a different job in 2021 and 2022. Workers are 45% more at-ease about their retirement when their employer has a defined contribution plan. What better way to hold on to your best employees than letting them know you care about their financial health, even after they've moved on?

Incentivizing Employees | O'Fallon, MO 401(k) Companies

Many O'Fallon, MO companies offer increased 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 | O'Fallon, MO 401(k) Companies

Small and medium companies can receive a tax credit for plan startup costs if they fulfill three requirements dictated by the IRS:

  1. You had under 100 employees who received at least $5,000 in compensation from you the previous year.
  2. You had at least one plan participant who was a non-highly compensated employee.
  3. 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 up to three years, and there is another tax credit for attaching an automatic enrollment feature to a new 401(k) plan or one you already had.

Additional Tax Benefits

Apart from the startup tax credit, the IRS offers two added tax benefits for sponsoring a 401(k) plan:

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

Correct Capital's financial advisors also offer comprehensive tax planning services to O'Fallon, MO companies. We'll strive to lower your tax liability as part of our 401(k) services.

Employee Education

One of the facets that sets Correct Capital apart from other 401(k) advisors in O'Fallon, MO is that we offer financial planning as a perk to your participating staff. With group education meetings, we'll make sure your employees understand the best investment opportunities for themselves, know how your 401(k) plan works, and understand how it's serving them. We can also use one-on-one sessions to discuss financial portfolio and asset management with individual staff. When you hire a new employee that had a 401(k) plan with their previous company, we can offer assistance with their 401(k) rollover.

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

The O'Fallon, MO 401(k) consultants at Correct Capital can help your business initiate many different plans through many 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 equal what their employees put in. Taxes are paid when the savings and earnings are withdrawn.
  • Roth 401(k) Plans: Roth plans are analogous traditional plans, with the exception contributions are made with money you have already paid taxes on. Income made in the plan, such as interest, dividends, or capital gains, is tax-free when the individual 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 specifically for small businesses who need a cost-efficient way to offer their employees 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 pay; or
    • A non-elective contribution of 2% of an employee's pay.
  • Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, except that the employer is required to make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not conduct its annual nondiscrimination tests.

In our first meeting, we'll get to know your O'Fallon, MO 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, MO include:

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

Correct Capital is unique among O'Fallon, MO 401(k) advisors because we offer the level of personalized care as smaller financial firms, but combine it with the same savvy, experience, and connections as larger firms. We offer independent and objective direction, always geared toward doing what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to connect employers to 401(k) companies for over two decades and at present we represent over $230 million in total plan assets across the United States. Call us at 314-930-401(k) or contact us online to talk over your 401(k) needs today.

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