401(k) Companies in Shrewsbury, MO
401(k) Companies in Shrewsbury, MO. Establishing a 401(k) plan with trustworthy 401(k) advisors is a great way for medium and small businesses in Shrewsbury, MO to appeal to and hold onto employees, encourage great work, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting businesses with secure 401(k) companies in Shrewsbury, MO for more than two decades. Call us today at 877-930-4015 or contact us online to discover more about how Correct Capital can help your Shrewsbury, MO business and your employees thrive.
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 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 companies in the United States with less than 50 employees provide a 401(k) plan to their employees, and more than a third have no present intentions to do so. A different study found that a 401(k) plan is the only instrument many Americans have for saving for retirement.
The J.P. Morgan survey found that the most frequent incentive for employers to explore 401(k) companies and offer a plan was to encourage their employees to put money aside conscientiously for retirement. In order to do this fruitfully for your best employees, it is crucial to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Shrewsbury, MO.
There are numerous advantages to using 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 unique circumstances. Certain plans are more appropriate for certain businesses, and our Shrewsbury, MO 401(k) advisors help pick out the best 401(k) company and plan for you and your employees. As independent advisors, there is no restraint to which 401(k) companies we can connect you to . From offering financial planning education, advising 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) 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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Advantages of Offering a 401(k) Plan | Shrewsbury, 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 reason was that their company was not generating sufficient profit. But there are a lot of reasons why initiating a 401(k) plan for your employees could be best for your bottom line down the road. The 401(k) consultants at Correct Capital will put together a comprehensive guide to the myriad advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Shrewsbury, MO 401(k) Companies
We're living through the Great Resignation; a recent survey found that 55% of Americans expected to search for a new job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer has a 401(k) plan. What better way to hang on to your best employees than letting them know their financial security matters to you, even after they've left the workforce?
Incentivizing Employees | Shrewsbury, MO 401(k) Companies
Many Shrewsbury, MO businesses offer greater contributions when certain performance goals are met. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be a great way to keep your employees' motivation high and to sustain their performance.
Plan Startup Tax Credits | Shrewsbury, MO 401(k) Companies
Small and medium companies can get a tax credit for plan startup expenses if they fulfill three requirements dictated by the IRS:
- You had 100 or fewer workers who received at least $5,000 in compensation from you the year prior.
- You had a minimum of 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 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
Besides the startup tax credit, the IRS offers two further tax benefits for sponsoring a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not surpass the limits stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and posses tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to Shrewsbury, MO businesses. We'll strive to decrease 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) advisors in Shrewsbury, MO is that we offer financial planning as a benefit to your participating staff. With group education meetings, we'll make sure your employees know the ideal investment opportunities for themselves, are aware of how your 401(k) program functions, and appreciate how it's serving them. We can also have one-on-one meetings to go through financial portfolio and asset management with individual employees. When a new employer joins your team and they had a 401(k) plan with their old company, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | Shrewsbury, MO 401(k) Companies
The Shrewsbury, MO 401(k) advisors at Correct Capital can help your business initiate 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 range of investment options. Employers can match their employees' contributions. 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. Gains made in the plan, such as interest, dividends, or capital gains, is tax-free when the individual withdraws funds 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 specifically for small businesses who want a cost-effective way to offer their employees a retirement plan. Similar to a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- A matching contribution of no more than 3% of an employee's pay; or
- A non-elective contribution of 2% of a worker's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, but they must include employer contributions that are fully vested when made. In exchange for for required contributions, the IRS does not carry out its annual nondiscrimination tests.
In our first meeting, we'll get to know your Shrewsbury, MO business and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Shrewsbury, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | Shrewsbury, MO 401(k) Companies
Correct Capital is unique among Shrewsbury, MO 401(k) advisors because we offer the degree of personalized attention as smaller financial firms, but combine it with the same savvy, professionalism, and partnerships as larger firms. We provide independent and objective direction, 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 introduce employers 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 877-930-4015 or contact us online to go over your 401(k) needs today.
