401(k) Companies in St. Charles County, MO
401(k) Companies in St. Charles County, MO. Setting up a 401(k) plan with dependable 401(k) advisors is a wonderful way for medium and small businesses in St. Charles County, MO to appeal to and retain employees, incentivize great work, and receive those much-needed tax breaks. Correct Capital Wealth Management has been introducing businesses to trusted 401(k) companies in St. Charles County, MO for over 20 years. Call us today at 877-930-4015 or contact us online to find out more about how Correct Capital can help your St. Charles County, MO business and your employees succeed.
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 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 401(k) plan to their employees, and over 33% have no present aim to do so. An additional study found that a 401(k) plan is the only instrument many Americans have for saving for retirement.
The J.P. Morgan survey stated that the most common incentive for employers to look into 401(k) companies and offer a plan was to incentivize their employees to put money aside conscientiously for retirement. In order to do this successfully for your valued employees, it is essential to consult a trusted, independent retirement planning advisory firm like Correct Capital based in St. Charles County, MO.
There are various advantages 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 work for your needs and individual situation. Specific plans work better for certain employers, and our St. Charles County, MO 401(k) advisors help locate the preferred 401(k) company and plan for you and your employees. As an independent retirement planning firm, there is no limit to which 401(k) companies we can work with . From offering financial planning education, guiding individual employees on retirement planning, and assisting you maneuver how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are an indispensable aspect of any 401(k) program.
Advantages of Offering a 401(k) Plan | St. Charles County, MO 401(k) Companies
The benefits of providing retirement planning to staff through 401(k) companies are evident. Almost 40% of employers who did not offer 401(k) plans said that their reason was that their company was not generating enough revenue. 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 put together an extensive guide to the myriad benefits certain programs will have for you. Among them are:
Recruiting and Retaining Talent | St. Charles County, MO 401(k) Companies
We're living through the Great Resignation; a recent survey stated that 55% of Americans expected to look for a different job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer provides a 401(k) plan. What better way to hold on to your best employees than letting them know you care about their financial security, even after they've left the workforce?
Incentivizing Employees | St. Charles County, MO 401(k) Companies
Many St. Charles County, MO employers give higher contributions when certain performance goals are met. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be a great way to keep your employees' motivation high and to maintain their performance.
Plan Startup Tax Credits | St. Charles County, 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 staff who collected 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.
- Your company 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 up to 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
In addition to the startup tax credit, the IRS offers two other tax benefits for implementing a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not exceed the limits set out in 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 comprehensive tax planning services to St. Charles County, MO businesses. We'll work to reduce your tax liability as part of our 401(k) services.
Employee Education
One of the facets that sets Correct Capital apart from other 401(k) advisors in St. Charles County, MO is that we offer financial planning as a service to your participating staff. With group education gatherings, we'll ensure your employees know the ideal investment options for themselves, understand how your 401(k) plan functions, and appreciate how it's helping 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 previous employer, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | St. Charles County, MO 401(k) Companies
The St. Charles County, MO 401(k) advisors at Correct Capital can help your business initiate 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 includes a wide array of investment options. Employers are able to match their employees' contributions. Taxes are paid when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, with the exception contributions are made with after-tax dollars. Income earned in the plan, such as interest, dividends, or capital gains, is tax-free when the employee takes money out 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-effective way to offer their staff a retirement plan. Like a traditional 401(k) plan, you can take money out of an employee's paycheck as their contribution. But, the employer must make either:
- An equal contribution of up to 3% of a staff members earnings; or
- A non-elective contribution of 2% of an employee's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, however they must include employer contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its annual nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your St. Charles County, MO company and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in St. Charles County, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
The Correct Capital Difference | St. Charles County, MO 401(k) Companies
Correct Capital is unique among St. Charles County, MO 401(k) advisors because we offer the level of individualized attention as smaller advisory firms, but couple it with the same wisdom, accomplishment, and connections as larger firms. We provide independent and objective counsel, 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 connect businesses to 401(k) companies for over 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 talk over your 401(k) needs today.
