401(k) Companies in Sappington, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Sappington, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a wonderful way for medium and small businesses in Sappington, MO to draw and hold onto employees, incentivize great work, and receive those much-needed tax breaks. Correct Capital Wealth Management has been introducing companies to trustworthy 401(k) companies in Sappington, MO for over two decades. Call us today at 314-930-401(k) or contact us online to find out more about what Correct Capital can do for your Sappington, MO business and employees.
As of 2020, defined-contribution (DC) plans like 401(k)s comprise $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 50% of all businesses in the United States with under 50 employees offer a 401(k) plan as an employee benefit, and over one-third have no present intent to do so. Another study found that a 401(k) plan is the only vehicle many Americans have for putting 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 encourage their employees to put money aside conscientiously for retirement. In order to do this successfully for your prized employees, it is critical to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in Sappington, MO.
There are countless benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and safe 401(k) companies to put forward for you and your employees the retirement solutions that work for your best interests and specific situation. Specific plans are more appropriate for certain businesses, 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 restraint to which 401(k) companies we can work with . From offering investment education, counseling individual employees on retirement planning, and helping you maneuver how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a vital facet of any 401(k) plan.
Benefits of Offering a 401(k) Plan | Sappington, MO 401(k) Companies
The advantages of offering retirement planning to employees through 401(k) companies are apparent. Almost 40% of employers who did not offer 401(k) plans said that their company was not generating sufficient earnings. But there are countless reasons why initiating a 401(k) plan for your employees could end up being best for your bottom line. The 401(k) consultants at Correct Capital will compile a comprehensive guide to the many advantages certain plans will have for you. Among them are:
Attracting and Retaining Talent | Sappington, MO 401(k) Companies
We're living through the Great Resignation; a recent survey stated that 55% of Americans thought they would search for a new job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer provides a retirement plan. What better way to hang on to your hardest working employees than letting them know you care about their financial security, even after they are no longer working for you?
Incentivizing Employees | Sappington, MO 401(k) Companies
Many Sappington, MO businesses offer increased contributions when particular performance goals are met. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be a successful way to keep your best employees motivated to keep up their performance.
Plan Startup Tax Credits | Sappington, MO 401(k) Companies
Small and medium companies are able to receive a tax credit for plan startup costs if they satisfy three requirements dictated by the IRS:
- You had 100 or fewer employees who were paid at least $5,000 in compensation from you the previous year.
- You had at least 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 different tax credit for adding an automatic enrollment feature to a new or existing 401(k) plan.
Additional Tax Benefits
In addition to the startup tax credit, the IRS offers two additional tax benefits for implementing a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not go over the limits stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
One of the aspects that makes Correct Capital different from other 401(k) consultants in Sappington, MO is that we offer financial planning as a perk to your participating staff. With group education meetings, we'll make certain your employees know the best investment options for themselves, understand how your 401(k) plan functions, and appreciate how it's helping them. We can also have one-on-one meetings to talk over financial portfolio and asset management with individual workers. When a new employer joins your team and they had a 401(k) plan with their prior company, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | Sappington, MO 401(k) Companies
The Sappington, MO 401(k) consultants at Correct Capital can help your companies set up many different plans through many different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes a wide array of investment options. Employers can equal their employees' contributions. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, except that contributions are made with money you have already paid taxes on. Gains obtained 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 at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans exist specifically for small businesses who need a cost-effective way to offer their staff a retirement plan. Similar to a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- An equal contribution of up to 3% of a worker's pay; or
- A non-elective contribution of 2% of an employee's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, except that the employer must 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 gain an understanding of your Sappington, MO company and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Sappington, MO include:
- 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
- Rollover 401(k)
The Correct Capital Difference | Sappington, MO 401(k) Companies
Correct Capital stands out among Sappington, MO 401(k) advisors because we offer the level of individualized attention as smaller financial firms, but combine it with the same wisdom, experience, and partnerships as larger firms. We offer independent and objective direction, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and moral duty to do so. Our retirement consultants have been trusted to connect employers to 401(k) companies for over two decades and currently represent over $230 million in total plan assets nationwide. Call us at 314-930-401(k) or contact us online to talk over your 401(k) needs today.