401(k) Companies in Sappington, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Sappington, MO. Establishing a 401(k) plan with trustworthy 401(k) advisors is an excellent way for medium and small businesses in Sappington, MO to attract and retain employees, incentivize great performance, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been connecting businesses with secure 401(k) companies in Sappington, MO for more than 20 years. Call us today at 314-930-401(k) or contact us online to learn more about what Correct Capital can do for your Sappington, MO business and employees.
As of 2020, defined-contribution (DC) plans such as 401(k)s constitute $9.9 trillion of the total $32.3 trillion in retirement plan funds 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 half of all employers in the United States with under 50 employees offer a retirement plan to their employees, and more than one-third have no present intentions to do so. An additional study found that a 401(k) plan is the only avenue many Americans have for setting money aside for retirement.
The J.P. Morgan survey found that the most common motivation 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 valued employees, it is crucial to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Sappington, MO.
There are various advantages to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and secure 401(k) companies to put forward for you and your employees the retirement solutions that are in your best interests and specific circumstances. Specific plans are more appropriate for certain employers, and our Sappington, 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 investment education, guiding individual employees on retirement planning, and assisting you maneuver how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a crucial part of any 401(k) program.
Advantages of Offering a 401(k) Plan | Sappington, MO 401(k) Companies
The advantages of offering retirement planning to staff through 401(k) companies are obvious. Almost 40% of employers who did not offer 401(k) plans said that their reason was that their business was not generating sufficient income. But there are countless reasons why implementing a 401(k) plan for your employees could be best for your bottom line down the road. The 401(k) advisors at Correct Capital will compile an extensive guide to the many benefits certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Sappington, MO 401(k) Companies
We're going through the Great Resignation; a recent survey reported that 55% of Americans expected to search for a new job in 2021 and 2022. Workers feel 45% more assured about their retirement when their employer has a 401(k) plan. What better way to retain your favorite employees than assuring them that you care about their financial health, even after they've left the workforce?
Motivating Employees | Sappington, MO 401(k) Companies
Many Sappington, MO companies offer increased contributions when certain performance goals are met. 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 keep up their performance.
Plan Startup Tax Credits | Sappington, MO 401(k) Companies
Small and medium companies can collect a tax credit for plan startup costs if they meet three requirements stipulated by the IRS:
- You had less than 100 workers who received 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.
- In the three years prior, you did not already have a retirement plan in place that covered substantially the same employees.
The tax credit is obtainable for a maximum of three years, and there is an additional tax credit for attaching an automatic enrollment feature to a new or extant 401(k) plan.
Additional Tax Benefits
Other than the startup tax credit, the IRS offers two added tax benefits for having a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not surpass the limits set out in Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
One of the things that sets Correct Capital apart from other 401(k) consultants in Sappington, MO is that we offer financial planning as a perk to plan participants. Through group education meetings, we'll ensure your employees know the ideal investment opportunities for themselves, are aware of how your 401(k) plan functions, and appreciate how it's benefiting them. We can also use one-on-one meetings to go through financial portfolio and asset management with individual staff. When you hire a new employee that had a 401(k) plan with their old employer, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Sappington, MO 401(k) Companies
The Sappington, MO 401(k) advisors at Correct Capital can help your business set up several different plans through many different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that offers numerous investment options. Employers are able to 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, but 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 individual withdraws money after continuing the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are in place specially for small businesses who want a cost-effective way to offer their workers retirement benefits. Similar to a traditional 401(k) plan, you can 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 worker's earnings; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, other than the fact that the employer is required to make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not perform its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Sappington, MO business and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in Sappington, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Sappington, MO 401(k) Companies
Correct Capital is unique among Sappington, MO 401(k) advisors because we offer the level of personalized care as smaller financial firms, but couple it with the same wisdom, professionalism, and partnerships as larger firms. We offer independent and objective advice, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to connect companies to 401(k) companies for over 25 years and at present we represent over $230 million in total plan assets throughout the United States. Call us at 314-930-401(k) or contact us online to discuss your 401(k) needs today.