401(k) Companies in O'Fallon, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in O'Fallon, MO. Initiating a 401(k) plan with trusted 401(k) advisors is an excellent way for small and mid-sized businesses in O'Fallon, MO to draw and retain employees, incentivize great work, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting businesses with trustworthy 401(k) companies in O'Fallon, MO 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, MO business and your employees thrive.
As of 2020, defined-contribution (DC) plans such as 401(k)s made up $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 employers in the United States with under 50 employees provide a 401(k) plan to their employees, and more than one-third have no present plans to do so. A different study found that a 401(k) plan is the only vehicle many Americans have for putting money aside for retirement.
The J.P. Morgan survey found that the most frequent reason for employers to look into 401(k) companies and provide a plan was to incentivize their employees to set money aside conscientiously for retirement. In order to do this effectively for your prized employees, it is critical to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in O'Fallon, MO.
There are numerous benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and secure 401(k) companies to put forward for you and your employees the retirement solutions that are in your needs and individual situation. Certain plans work better for certain companies, and our O'Fallon, MO 401(k) advisors help recognize the best 401(k) company and plan for you and your employees. As independent advisors, 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 helping you understand how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are an invaluable facet of any 401(k) plan.
Advantages of Offering a 401(k) Plan | O'Fallon, MO 401(k) Companies
The benefits of providing retirement planning to workers through 401(k) companies are evident. Almost 40% of employers who did not offer 401(k) plans stated that their company was not generating enough profit. But there are countless reasons why initiating a 401(k) plan for your employees could be best for your bottom line in the end. The 401(k) consultants at Correct Capital will compile a comprehensive guide to the myriad advantages certain plans will have for you. Among them are:
Recruiting and Retaining Talent | O'Fallon, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey reported that 55% of Americans expected to search 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 keep your favorite employees than assuring them that their financial health is important to you, even after they've moved on?
Incentivizing Employees | O'Fallon, MO 401(k) Companies
Many O'Fallon, MO businesses offer increased contributions when particular performance goals are met. 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 sustain their production.
Plan Startup Tax Credits | O'Fallon, MO 401(k) Companies
Small and medium companies are able to collect a tax credit for plan startup expenses if they meet three requirements stipulated by the IRS:
- You had 100 or fewer workers who collected at least $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 preceding years, you did not already have a retirement plan in place that benefited substantially the same employees.
The tax credit is accessible for up to three years, and there is a different tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Benefits
Besides the startup tax credit, the IRS offers two extra tax benefits for having a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not exceed the limits set out in Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and have the advantage of tax deferral until distribution.
Correct Capital's financial advisors also offer extensive tax planning services to O'Fallon, MO residents and employers. We'll work to reduce your tax liability as part of our 401(k) services.
One of the features that sets Correct Capital apart from other 401(k) consultants in O'Fallon, MO is that we offer financial planning as a benefit to your participating employees. Through group education gatherings, we'll ensure your employees recognize the best investment options for themselves, know how your 401(k) program functions, and see how it's benefiting them. We can also use one-on-one meetings to discuss financial portfolio and asset management with individual employees. When a new member joins your team and they had a 401(k) plan with their previous employer, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | O'Fallon, MO 401(k) Companies
The O'Fallon, MO 401(k) consultants at Correct Capital can help your companies implement many different plans through a variety of different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers numerous investment options. Employers may match what their employees put in. Taxes are taken out when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, however contributions are made with after-tax dollars. Income earned in the plan, such as interest, dividends, or capital gains, is tax-free when the individual takes funds out 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 looking for a cost-effective way to offer their employees a retirement plan. Similar to 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 an employee's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, other than the fact that they must include employer contributions that are fully vested when made. In exchange for for required contributions, the IRS does not conduct its yearly nondiscrimination tests.
In our initial meeting, we'll gain an understanding of your O'Fallon, MO company and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in O'Fallon, MO 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 | O'Fallon, MO 401(k) Companies
Correct Capital is unique among O'Fallon, MO 401(k) advisors because we provide the level of individualized attention as smaller advisory firms, but couple it with the same knowledge, accomplishment, and connections as larger firms. We provide independent and objective counsel, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to introduce employers to 401(k) companies for more than two decades and currently 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.