401(k) Companies in Shrewsbury, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Shrewsbury, MO. Setting up a 401(k) plan with dependable 401(k) advisors is an excellent way for medium and small companies in Shrewsbury, MO to attract and retain employees, encourage great performance, and get those much-needed tax breaks. Correct Capital Wealth Management has been connecting businesses 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 discover more about how Correct Capital can help your Shrewsbury, MO business and your employees succeed.
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 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 under 50 employees provide a 401(k) plan as an employee benefit, and over 33% have no present intent 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 stated that the most frequent reason for employers to look into 401(k) companies and provide a plan was to encourage their employees to save responsibly for retirement. In order to do this successfully for your prized employees, it is crucial to consult a trusted, independent retirement planning advisory firm like Correct Capital based in Shrewsbury, MO.
There are numerous benefits to using Correct Capital's 401(k) services. Correct Capital partners with many dependable and stable 401(k) companies to put forward for you and your employees the retirement solutions that serve your best interests and individual circumstances. Certain plans are more apt for certain companies, and our Shrewsbury, MO 401(k) advisors help locate the preferred 401(k) company and plan for you and your employees. As independent retirement consultants, there is no restraint to which 401(k) companies we can connect you to . From offering investment education, advising individual employees on retirement planning, and helping you understand how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an indispensable facet of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Shrewsbury, MO 401(k) Companies
The advantages of offering retirement planning to staff through 401(k) companies are obvious. Thirty-nine percent of employers who did not offer 401(k) plans stated that their company was not bringing in sufficient earnings. But there are many reasons why initiating a 401(k) plan for your employees may be best for your bottom line in the end. The 401(k) consultants at Correct Capital will compile an extensive guide to the various advantages certain plans will have for you. Among them are:
Attracting and Retaining Talent | Shrewsbury, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey found that 55% of Americans expected to look for a different job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer provides a 401(k) plan. What better way to keep your favorite employees than assuring them that their financial security is important to you, even after they are no longer working for you?
Motivating Employees | Shrewsbury, MO 401(k) Companies
Many Shrewsbury, MO companies offer higher contributions when particular performance goals are met. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to keep up their production.
Plan Startup Tax Credits | Shrewsbury, MO 401(k) Companies
Small and medium companies are able to collect a tax credit for plan startup costs if they satisfy three requirements stipulated by the IRS:
- You had under 100 employees who collected a minimum of $5,000 in compensation from you the previous year.
- You had a minimum of 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 covered substantially the same employees.
The tax credit is obtainable for up to three years, and there is a different tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.
Additional Tax Advantages
Besides the startup tax credit, the IRS offers two other tax benefits for having 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 have the advantage of tax deferral until distribution.
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 service to plan participants. Through group education meetings, we'll ensure your employees understand the best investment opportunities for themselves, understand how your 401(k) plan works, and appreciate how it's helping them. We can also have one-on-one meetings to discuss 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 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 companies set up 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 equal what their employees put in. Taxes are deducted when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, with the exception contributions are made with money you have already paid taxes on. Income made in the plan, such as interest, dividends, or capital gains, is tax-free when the individual takes funds out after preserving 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 who need 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. But, the employer must make either:
- An equal contribution of no more than 3% of an employee's pay; or
- A non-elective contribution of 2% of an employee's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, with the exception they must include employer contributions that are fully vested when made. In return for required contributions, the IRS does not conduct its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Shrewsbury, MO business and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in Shrewsbury, 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 | Shrewsbury, MO 401(k) Companies
Correct Capital stands out among Shrewsbury, MO 401(k) advisors because we provide the level of individualized attention as smaller advisory firms, but combine it with the same knowledge, professionalism, and partnerships as larger firms. We provide independent and objective advice, always geared toward doing what's in your best interest; 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 more than 25 years and currently represent over $230 million in total plan assets across the United States. Call us at 314-930-401(k) or contact us online to talk over your 401(k) needs today.