401(k) Companies in Shrewsbury, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Shrewsbury, MO. Establishing a 401(k) plan with trustworthy 401(k) advisors is an excellent way for medium and small businesses in Shrewsbury, MO to appeal to and hold onto employees, incentivize great work, and receive those much-needed tax breaks. Correct Capital Wealth Management has been connecting employers with secure 401(k) companies in Shrewsbury, MO for over 20 years. Call us today at 314-930-401(k) or contact us online to find out more about what Correct Capital can do for your Shrewsbury, MO business and employees.
As of 2020, defined-contribution (DC) plans like 401(k)s accounted for $9.9 trillion of the total $32.3 trillion in retirement plan capital 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 50% of all employers in the United States with less than 50 employees offer a retirement plan to their employees, and more than one-third have no present intent to do so. Another study found that a 401(k) plan is the only avenue many Americans have for saving for retirement.
The J.P. Morgan survey stated that the most common incentive for employers to explore 401(k) companies and provide a plan was to encourage their employees to set money aside responsibly for retirement. In order to do this effectively for your valued 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 utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and stable 401(k) companies to put forward for you and your employees the retirement solutions that work for your needs and unique situation. Specific plans work better for certain companies, and our Shrewsbury, MO 401(k) advisors help identify the best 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 connect you to . From offering investment education, counseling individual employees on retirement planning, and assisting you navigate how to best implement 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 | Shrewsbury, MO 401(k) Companies
The benefits of providing retirement planning to employees through 401(k) companies are clear. Almost 40% of employers who did not offer 401(k) plans said that their business was not generating enough earnings. But there are many reasons why setting up 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 put together an extensive guide to the various advantages certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Shrewsbury, MO 401(k) Companies
We're in the middle of 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 assured about their retirement when their employer provides a retirement plan. What better way to hold on to your best employees than assuring them that you care about their financial security, even after they've left the workforce?
Incentivizing Employees | Shrewsbury, MO 401(k) Companies
Many Shrewsbury, MO employers give higher contributions when their employees reqach certain performance goals. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be a successful way to keep your best employees motivated to maintain their production.
Plan Startup Tax Credits | Shrewsbury, MO 401(k) Companies
Small and medium companies are able to get a tax credit for plan startup expenses if they fulfill three requirements dictated by the IRS:
- You had under 100 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.
- Your business did not already have a retirement plan covering substantially the same employees during the three years preceding the year for which you are claiming credit.
The tax credit is available for a maximum of three years, and there is a different tax credit for attaching 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 additional tax benefits for sponsoring a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not surpass the limits dictated 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 residents and employers. We'll strive to decrease your tax liability as part of our 401(k) services.
One of the aspects that sets Correct Capital apart from other 401(k) consultants in Shrewsbury, MO is that we offer financial planning as a service to plan participants. Through group education meetings, we'll make certain your employees understand the best investment opportunities for themselves, know how your 401(k) program functions, and recognize how it's serving them. We can also use one-on-one meetings to go through financial portfolio and asset management with individual staff. When a new member joins your team and they had a 401(k) plan with their previous employer, 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 implement a variety of different plans through many different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers a wide array of investment options. Employers are able to equal their employees' contributions. Taxes are paid when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, however contributions are made with money you have already paid taxes on. Income obtained 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 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans exist specifically for small businesses looking for a cost-efficient way to offer their workers retirement benefits. Similar to a traditional 401(k) plan, you may take money out of an employee's paycheck as their contribution. However, the employer must make either:
- An equal contribution of no more than 3% of a staff members earnings; or
- A non-elective contribution of 2% of an employee's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, other than the fact that they must include employer contributions that are fully vested when made. In exchange for for required contributions, the IRS does not conduct its annual nondiscrimination tests.
In our initial meeting, we'll gain an understanding of your Shrewsbury, MO company and your employee's retirement needs to find the ideal type of 401(k) plan for you.
Other services we offer in Shrewsbury, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Shrewsbury, MO 401(k) Companies
Correct Capital is unique among Shrewsbury, MO 401(k) advisors because we offer the level of individualized attention as smaller advisory firms, but combine it with the same wisdom, accomplishment, and partnerships as larger firms. We provide independent and objective advice, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and moral responsibility to do so. Our retirement consultants have been trusted to connect employers to 401(k) companies for over 25 years and at present we 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.