401(k) Companies in Richmond Heights, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Richmond Heights, MO. Establishing a 401(k) plan with dependable 401(k) advisors is a wonderful way for medium and small businesses in Richmond Heights, MO to appeal to and hold onto employees, incentivize great work, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been connecting businesses with trusted 401(k) companies in Richmond Heights, 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 Richmond Heights, MO business and employees.
As of 2020, defined-contribution (DC) plans such as 401(k)s accounted for $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 employers in the United States with under 50 employees offer a retirement plan to their employees, and over one-third have no current intentions to do so. An additional 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 found that the most frequent incentive for employers to look into 401(k) companies and provide a plan was to encourage their employees to save conscientiously for retirement. In order to do this effectively for your prized employees, it is important to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Richmond Heights, MO.
There are countless advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and stable 401(k) companies to offer you and your employees the retirement solutions that are in your best interests and individual situation. Specific plans are more appropriate for certain businesses, and our Richmond Heights, MO 401(k) advisors help pick out 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, counseling individual employees on retirement planning, and helping you navigate how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a crucial aspect of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Richmond Heights, 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 gave their reason as being that their company was not generating sufficient revenue. But there are a lot of reasons why setting up a 401(k) plan for your employees may be best for your bottom line in the end. The 401(k) advisors at Correct Capital will put together a comprehensive guide to the many benefits certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Richmond Heights, MO 401(k) Companies
We're living through the Great Resignation; a recent survey found that 55% of Americans anticipated searching for a new job in 2021 and 2022. Workers feel 45% more assured about their retirement when their employer offers a defined contribution plan. What better way to hold on to your best employees than assuring them that their financial security is important to you, even after they've moved on?
Motivating Employees | Richmond Heights, MO 401(k) Companies
Many Richmond Heights, MO companies offer greater contributions when their employees accomplish certain performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your best employees motivated to sustain their performance.
Plan Startup Tax Credits | Richmond Heights, MO 401(k) Companies
Small and medium companies are able to get a tax credit for plan startup expenses if they fulfill three requirements laid out by the IRS:
- You had under 100 workers who received a minimum of $5,000 in compensation from you the previous year.
- You had a minimum of 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 obtainable for up to three years, and there is a further tax credit for attaching an automatic enrollment feature to a new or extant 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 the extent that the contributions do not exceed the limits dictated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and benefit from tax deferral until distribution.
One of the features that sets Correct Capital apart from other 401(k) advisors in Richmond Heights, MO is that we offer financial planning as a service to your participating staff. Through group education gatherings, we'll make sure your employees recognize the ideal investment opportunities for themselves, know how your 401(k) program works, and understand how it's helping them. We can also use one-on-one meetings to talk over financial portfolio and asset management with individual workers. When you hire a new employee that had a 401(k) plan with their prior employer, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | Richmond Heights, MO 401(k) Companies
The Richmond Heights, MO 401(k) advisors at Correct Capital can help your business set up a variety of different plans through many different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that includes a range of investment options. Employers may equal what their employees put in. Taxes are paid when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, except that contributions are made with money you have already paid taxes on. Income earned in the plan, such as interest, dividends, or capital gains, is tax-free when the individual withdraws funds after maintaining the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans are in place specifically for small businesses who need a cost-efficient 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. However, the employer must make either:
- A matching contribution of no more than 3% of a worker's earnings; or
- A non-elective contribution of 2% of a worker's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, but they must include employer contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its annual nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Richmond Heights, MO company and your employee's retirement needs to find the ideal type of 401(k) plan for you.
Other services we offer in Richmond Heights, MO include:
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
- Social Security Consultants Near Me
- Retirement Calculator
- Retirement Planning
The Correct Capital Difference | Richmond Heights, MO 401(k) Companies
Correct Capital is distinctive among Richmond Heights, MO 401(k) advisors because we offer the degree of individualized attention as smaller advisory firms, but combine it with the same knowledge, experience, and connections as larger firms. We offer independent and objective guidance, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and ethical responsibility to do so. Our retirement consultants have been trusted to connect employers to 401(k) companies for over 25 years and presently 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.