401(k) Companies in Olivette, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Olivette, MO. Setting up a 401(k) plan with dependable 401(k) advisors is a great way for small and mid-sized businesses in Olivette, MO to attract and retain employees, encourage great production, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting companies with dependable 401(k) companies in Olivette, MO for more than two decades. Call us today at 314-930-401(k) or contact us online to learn more about what Correct Capital can do for your Olivette, MO business and employees.
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 half of all companies in the United States with less than 50 employees offer a retirement plan as an employee benefit, and more than 33% have no current intentions to do so. A different study found that a 401(k) plan is the only vehicle many Americans have for saving for retirement.
The J.P. Morgan survey found that the most common reason for employers to inquire about 401(k) companies and provide a plan was to incentivize their employees to put money aside responsibly for retirement. In order to do this successfully for your prized employees, it is important to reach out to a trusted, independent retirement planning advisory firm like Correct Capital based in Olivette, MO.
There are a great deal of advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to put forward for you and your employees the retirement solutions that serve your needs and unique circumstances. Certain plans work better for certain businesses, and our Olivette, MO 401(k) advisors help locate the best 401(k) company and plan for you and your employees. As an independent advisory firm, there is no restriction to which 401(k) companies we can connect you to . From offering financial planning education, advising 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) advisory services are a vital part of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Olivette, MO 401(k) Companies
The advantages of offering retirement planning to workers through 401(k) companies are clear. Almost 40% of employers who did not offer 401(k) plans said that their reason was that their business was not bringing in sufficient earnings. But there are numerous reasons why initiating a 401(k) plan for your employees may end up being best for your bottom line. The 401(k) consultants at Correct Capital will put together a comprehensive guide to the various benefits certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Olivette, MO 401(k) Companies
We're enduring 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 retain your hardest working employees than letting them know you care about their financial well-being, even after they are no longer working for you?
Motivating Employees | Olivette, MO 401(k) Companies
Many Olivette, MO employers offer increased contributions when their employees accomplish specific performance goals. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be a successful way to keep your employees' motivation high and to continue their performance.
Plan Startup Tax Credits | Olivette, MO 401(k) Companies
Small and medium companies are able to receive a tax credit for plan startup costs if they fulfill three requirements dictated by the IRS:
- You had less than 100 employees who collected 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.
- 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 obtainable for a maximum of three years, and there is another tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.
Additional Tax Advantages
Besides the startup tax credit, the IRS offers two other tax benefits for having a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not surpass the limits dictated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and have the benefit of tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to Olivette, MO businesses. We'll strive to decrease your tax liability as part of our 401(k) services.
One of the features that makes Correct Capital different from other 401(k) consultants in Olivette, MO is that we offer financial planning as a benefit to your participating staff. With group education gatherings, we'll make certain your employees know the ideal investment opportunities for themselves, are aware of how your 401(k) plan functions, and recognize how it's benefiting them. We can also have one-on-one sessions to discuss financial portfolio and asset management with individual staff. When a new employer joins your team and they had a 401(k) plan with their prior company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Olivette, MO 401(k) Companies
The Olivette, MO 401(k) advisors at Correct Capital can help your business initiate many different plans through several different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers numerous investment options. Employers can equal what their employees put in. Taxes are taken out when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same 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 money out after maintaining the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans exist specifically for small businesses looking for a cost-efficient way to offer their employees 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 an employee'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, however the employer is required to make contributions that are fully vested when made. In return for required contributions, the IRS does not carry out its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Olivette, MO company and your employee's retirement needs to identify the ideal type of 401(k) plan for you.
Other services we offer in Olivette, 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 | Olivette, MO 401(k) Companies
Correct Capital is distinctive among Olivette, MO 401(k) advisors because we offer the degree of personalized care as smaller financial firms, but combine it with the same savvy, accomplishment, and connections as larger firms. We offer independent and objective counsel, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and ethical responsibility to do so. Our retirement consultants have been trusted to connect businesses to 401(k) companies for more than 25 years and currently represent over $230 million in total plan assets nationwide. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.