401(k) Companies in St. Charles County, MO
401(k) Companies in St. Charles County, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a great way for small and mid-sized businesses in St. Charles County, MO to appeal to and hold onto employees, encourage great work, and get those much-desired tax breaks. Correct Capital Wealth Management has been connecting companies with secure 401(k) companies in St. Charles County, MO for over two decades. 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 such as 401(k)s accounted for $9.9 trillion of the total $32.3 trillion in retirement plan assets held in the United States, as reported by 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 over one-third have no present plans 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 found that the most common reason for employers to look into 401(k) companies and provide a plan was to encourage their employees to put money aside conscientiously for retirement. In order to do this effectively for your best employees, it is important to reach out to a trusted, independent retirement planning advisory firm like Correct Capital based in St. Charles County, MO.
There are a great deal of advantages to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and stable 401(k) companies to bring you and your employees the retirement solutions that work for your needs and specific situation. Specific plans work better for certain companies, and our St. Charles County, MO 401(k) advisors help identify the best 401(k) company and plan for you and your employees. As an independent retirement planning firm, there is no restriction to which 401(k) companies we can connect you to . From offering investment education, advising individual employees on retirement planning, and helping you navigate how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an invaluable part of any 401(k) plan.
Advantages of Offering a 401(k) Plan | St. Charles County, MO 401(k) Companies
The advantages of offering retirement planning to staff through 401(k) companies are apparent. Almost 40% of employers who did not offer 401(k) plans gave their reason as being that their business was not generating enough income. But there are numerous reasons why implementing a 401(k) plan for your employees may end up being best for your bottom line. The 401(k) advisors 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 | St. Charles County, MO 401(k) Companies
We're going through the Great Resignation; a recent survey discovered that 55% of Americans expected to search for a new job in 2021 and 2022. Workers are 45% more assured about their retirement when their employer offers a defined contribution plan. What better way to hold on to your hardest working employees than assuring them that their financial well-being is important to you, even after they've moved on?
Motivating Employees | St. Charles County, MO 401(k) Companies
Many St. Charles County, MO businesses offer higher contributions when particular performance goals are met. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be an effective way to keep your best employees motivated to sustain their production.
Plan Startup Tax Credits | St. Charles County, MO 401(k) Companies
Small and medium companies can obtain a tax credit for plan startup expenses if they satisfy three requirements stipulated by the IRS:
- You had under 100 workers who were paid 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 obtainable for up to three years, and there is an additional tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Further Tax Advantages
Besides the startup tax credit, the IRS offers two additional tax benefits for having a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not go over 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 comprehensive tax planning services to St. Charles County, MO residents and employers. We'll strive to reduce your tax liability as part of our 401(k) services.
Employee Education
One of the things that makes Correct Capital different from other 401(k) consultants in St. Charles County, MO is that we offer financial planning as a benefit to plan participants. Through group education gatherings, we'll make certain your employees recognize the best investment options for themselves, know how your 401(k) plan works, and see how it's serving them. We can also have 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 old company, we can help 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 implement several different plans through several 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 are able to match what their employees put in. Taxes are taken out when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, however 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 money 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 want a cost-efficient way to offer their workers a retirement plan. Like 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 a staff members pay; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, however 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 gain an understanding of your St. Charles County, MO business and your employee's retirement needs to find 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
The Correct Capital Difference | St. Charles County, MO 401(k) Companies
Correct Capital is distinctive among St. Charles County, MO 401(k) advisors because we offer the level of personalized care as smaller financial firms, but pair it with the same savvy, accomplishment, and partnerships as larger firms. We offer independent and objective advice, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to introduce employers to 401(k) companies for more than 25 years and presently represent over $230 million in total plan assets across the United States. Call us at 877-930-4015 or contact us online to go over your 401(k) needs today.
