401(k) Companies in Olivette, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Olivette, MO. Initiating a 401(k) plan with trustworthy 401(k) advisors is an excellent way for small and mid-sized companies in Olivette, MO to attract and retain employees, encourage great work, and receive those much-desired tax breaks. Correct Capital Wealth Management has been introducing employers to secure 401(k) companies in Olivette, MO for more than 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 Olivette, 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 assets 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 employers in the United States with under 50 employees offer a retirement plan to their employees, and more than 33% have no present aim to do so. A further study found that a 401(k) plan is the only instrument many Americans have for setting money aside for retirement.
The J.P. Morgan survey reported that the most common incentive for employers to inquire about 401(k) companies and provide a plan was to encourage their employees to set money aside responsibly for retirement. In order to do this effectively for your valued employees, it is crucial to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Olivette, MO.
There are a great deal of advantages to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and safe 401(k) companies to offer you and your employees the retirement solutions that work for your needs and individual circumstances. Specific plans are more apt for certain employers, and our Olivette, MO 401(k) advisors help locate the preferred 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 assisting you understand how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are an invaluable part of any 401(k) program.
Benefits of Offering a 401(k) Plan | Olivette, MO 401(k) Companies
The benefits of offering retirement planning to staff through 401(k) companies are apparent. Almost 40% of employers who did not offer 401(k) plans said that their reason was that their company was not bringing in sufficient revenue. But there are countless reasons why setting up a 401(k) plan for your employees could wind up being best for your bottom line. The 401(k) consultants at Correct Capital will compile an all-inclusive guide to the various advantages certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Olivette, MO 401(k) Companies
We're going through the Great Resignation; a recent survey found that 55% of Americans thought they would search for a different job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer provides a defined contribution plan. What better way to keep your hardest working employees than assuring them that their financial well-being is important to you, even after they are no longer working for you?
Motivating Employees | Olivette, MO 401(k) Companies
Many Olivette, MO companies offer increased contributions when certain 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 best employees motivated to maintain their performance.
Plan Startup Tax Credits | Olivette, MO 401(k) Companies
Small and medium companies can receive a tax credit for plan startup expenses if they satisfy three requirements laid out by the IRS:
- You had 100 or fewer employees who were paid a minimum of $5,000 in compensation from you the year prior.
- You had at least one plan participant who was a non-highly compensated employee.
- Your company 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 a different tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Advantages
Other than the startup tax credit, the IRS offers two extra tax benefits for sponsoring a 401(k) plan:
- 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.
- Elective deferrals and investment gains are not taxed and have the benefit of tax deferral until distribution.
One of the aspects 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 meetings, we'll ensure your employees know the ideal investment opportunities for themselves, understand how your 401(k) plan functions, and appreciate how it's serving them. We can also use one-on-one meetings to talk over 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 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 implement 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 a wide array of investment options. Employers may equal their employees' contributions. Taxes are taken out when the savings and gains 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. 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 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans are specially for small businesses looking for a cost-effective way to offer their workers retirement benefits. Similar to a traditional 401(k) plan, you can take money out of an employee's paycheck as their contribution. But, the employer must make either:
- An equal contribution of no more than 3% of an employee's earnings; or
- A non-elective contribution of 2% of an employee's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, however the employer is required to make contributions that are fully vested when made. In exchange for for required contributions, the IRS does not perform its yearly nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Olivette, MO business 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:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Olivette, MO 401(k) Companies
Correct Capital is unique among Olivette, MO 401(k) advisors because we offer the degree of personalized attention as smaller advisory firms, but combine it with the same savvy, professionalism, and connections as larger firms. We offer independent and objective direction, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and moral duty to do so. Our retirement consultants have been trusted to connect 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.