401(k) Companies in O'Fallon, MO
401(k) Companies in O'Fallon, MO. Initiating a 401(k) plan with dependable 401(k) advisors is an excellent way for medium and small businesses in O'Fallon, MO to draw and hold onto employees, encourage great performance, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with dependable 401(k) companies in O'Fallon, MO for more than 20 years. Call us today at 877-930-4015 or contact us online to learn more about how Correct Capital can help your O'Fallon, MO business and your employees flourish.
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 capital 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 50% of all employers in the United States with under 50 employees provide a retirement plan as an employee benefit, and more than 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 stated that the most common motivation for employers to explore 401(k) companies and provide a plan was to encourage their employees to put money aside responsibly for retirement. In order to do this successfully for your valued employees, it is important to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in O'Fallon, MO.
There are countless benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and stable 401(k) companies to put forward for you and your employees the retirement solutions that work for your best interests and specific circumstances. Certain plans are more apt for certain businesses, 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 restraint to which 401(k) companies we can connect you to . From offering investment education, counseling 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) advisory services are an invaluable facet of any 401(k) plan.
Advantages of Offering a 401(k) Plan | O'Fallon, MO 401(k) Companies
The advantages of offering retirement planning to staff through 401(k) companies are apparent. Thirty-nine percent of employers who did not offer 401(k) plans said that their business was not bringing in enough income. But there are many reasons why implementing a 401(k) plan for your employees might be best for your bottom line down the road. The 401(k) advisors at Correct Capital will compile an extensive guide to the myriad benefits certain plans will have for you. Among them are:
Recruiting and Retaining Talent | O'Fallon, MO 401(k) Companies
We're going through the Great Resignation; a recent survey discovered 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 offers a 401(k) plan. What better way to hold on to your hardest working employees than letting them know you care about their financial well-being, even after they've moved on?
Motivating Employees | O'Fallon, MO 401(k) Companies
Many O'Fallon, MO businesses give higher contributions when certain performance goals are met. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be a great way to keep your employees' motivation high and to keep up their production.
Plan Startup Tax Credits | O'Fallon, MO 401(k) Companies
Small and medium companies can receive a tax credit for plan startup expenses if they meet three requirements dictated by the IRS:
- You had under 100 employees who received 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.
- Your business did not already have a retirement plan covering substantially the same employees during the three years preceding the year for which you are claiming credit.
The tax credit is available 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
Besides the startup tax credit, the IRS offers two further tax benefits for having a 401(k) plan:
- 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.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to O'Fallon, MO companies. We'll work to reduce your tax liability as part of our 401(k) services.
Employee Education
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 service to your participating employees. Through group education meetings, we'll ensure your employees know the ideal investment options for themselves, know how your 401(k) program functions, and recognize how it's serving them. We can also have one-on-one meetings to go through financial portfolio and asset management with individual employees. 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 | O'Fallon, MO 401(k) Companies
The O'Fallon, MO 401(k) advisors at Correct Capital can help your companies set up many different plans through several different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that includes numerous investment options. Employers may equal what their employees put in. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, however contributions are made with after-tax dollars. Income made in the plan, such as interest, dividends, or capital gains, is tax-free when the employee takes funds out after continuing the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans exist specifically for small businesses who need a cost-efficient way to offer their workers retirement benefits. Similar to a traditional 401(k) plan, you may take money out of an employee's paycheck as their contribution. However, the employer must make either:
- A matching contribution of up to 3% of a worker's pay; or
- A non-elective contribution of 2% of a worker's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, but the employer must make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its annual nondiscrimination tests.
In our initial meeting, we'll get to know your O'Fallon, MO business and your employee's retirement needs to identify the ideal type of 401(k) plan for you.
Other services we offer in O'Fallon, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
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 degree of personalized attention as smaller advisory firms, but combine it with the same savvy, experience, and connections as larger firms. We provide independent and objective counsel, always geared toward doing what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and ethical responsibility to do so. Our retirement consultants have been trusted to introduce businesses to 401(k) companies for over two decades and at present we represent over $230 million in total plan assets nationwide. Call us at 877-930-4015 or contact us online to discuss your 401(k) needs today.
