401(k) Companies in Rock Hill, MO
401(k) Companies in Rock Hill, MO. Setting up a 401(k) plan with trustworthy 401(k) advisors is a great way for medium and small businesses in Rock Hill, MO to attract and retain employees, encourage great work, and obtain those much-desired tax breaks. Correct Capital Wealth Management has been introducing employers to secure 401(k) companies in Rock Hill, MO for over 20 years. Call us today at 877-930-4015 or contact us online to find out more about what Correct Capital can do for your Rock Hill, MO business and employees.
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 assets held in the United States, according to the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than half of all businesses in the United States with less than 50 employees offer a retirement plan as an employee benefit, and over a third have no current plans 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 motive for employers to inquire about 401(k) companies and offer a plan was to incentivize their employees to save responsibly for retirement. In order to do this successfully for your prized employees, it is essential to consult a trusted, independent retirement planning advisory firm like Correct Capital based in Rock Hill, MO.
There are various advantages to using 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 work for your needs and specific situation. Certain plans are more apt for certain employers, and our Rock Hill, MO 401(k) advisors help determine the preferred 401(k) company and plan for you and your employees. As independent retirement consultants, 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 navigate how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an indispensable aspect of any 401(k) program.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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Benefits of Offering a 401(k) Plan | Rock Hill, MO 401(k) Companies
The advantages of providing retirement planning to employees through 401(k) companies are evident. Almost 40% of employers who did not offer 401(k) plans gave their reason as being that their company was not bringing in enough profit. But there are a lot of reasons why implementing a 401(k) plan for your employees could be best for your bottom line in the end. The 401(k) advisors at Correct Capital will put together an extensive guide to the various advantages certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Rock Hill, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey discovered that 55% of Americans anticipated looking for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer provides a 401(k) plan. What better way to keep your best employees than assuring them that their financial well-being matters to you, even after they've moved on?
Incentivizing Employees | Rock Hill, MO 401(k) Companies
Many Rock Hill, 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 | Rock Hill, MO 401(k) Companies
Small and medium companies can receive a tax credit for plan startup expenses if they fulfill three requirements stipulated by the IRS:
- You had under 100 employees 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 years prior, you did not already have a retirement plan in place that benefited substantially the same employees.
The tax credit is obtainable for a maximum of three years, and there is a further tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.
Additional Tax Benefits
Besides the startup tax credit, the IRS offers two other tax benefits for implementing 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 have the benefit of tax deferral until distribution.
Correct Capital's financial advisors also offer comprehensive tax planning services to Rock Hill, MO businesses. We'll strive to lower your tax liability as part of our 401(k) services.
Employee Education
One of the aspects that makes Correct Capital different from other 401(k) consultants in Rock Hill, MO is that we offer financial planning as a service to your participating staff. With group education gatherings, we'll make sure your employees recognize the best investment options for themselves, know how your 401(k) program functions, and recognize how it's helping them. We can also use one-on-one sessions 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 old employer, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | Rock Hill, MO 401(k) Companies
The Rock Hill, MO 401(k) advisors at Correct Capital can help your business implement a variety of different plans through several different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes numerous investment options. Employers are able to match their employees' contributions. Taxes are deducted when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, but 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 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 who need a cost-efficient way to offer their employees retirement benefits. Similar to a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. However, the employer must make either:
- An equal contribution of up to 3% of a staff members pay; 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, except that the employer is required to make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its yearly nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Rock Hill, MO company and your employee's retirement needs to identify the ideal type of 401(k) plan for you.
Other services we offer in Rock Hill, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | Rock Hill, MO 401(k) Companies
Correct Capital is unique among Rock Hill, MO 401(k) advisors because we provide the degree of personalized attention as smaller advisory firms, but pair it with the same wisdom, professionalism, and connections as larger firms. We offer independent and objective advice, 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 over 25 years and presently represent over $230 million in total plan assets throughout the United States. Call us at 877-930-4015 or contact us online to go over your 401(k) needs today.
