401(k) Companies in St. Charles, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in St. Charles, MO. Setting up a 401(k) plan with trustworthy 401(k) advisors is a great way for medium and small companies in St. Charles, MO to draw and hold onto employees, encourage great performance, and get those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with secure 401(k) companies in St. Charles, MO for more than 20 years. Call us today at 314-930-401(k) or contact us online to learn more about how Correct Capital can help your St. Charles, MO business and your employees succeed.
As of 2020, defined-contribution (DC) plans like 401(k)s made up $9.9 trillion of the total $32.3 trillion in retirement plan assets 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 employers in the United States with less than 50 employees offer a 401(k) plan to their employees, and over 33% have no present intent to do so. A different study found that a 401(k) plan is the only instrument many Americans have for putting money aside for retirement.
The J.P. Morgan survey found that the most common incentive for employers to research 401(k) companies and offer a plan was to encourage their employees to set money aside responsibly for retirement. In order to do this successfully for your best employees, it is essential to reach out to a trustworthy, independent retirement planning advisory firm like Correct Capital based in St. Charles, MO.
There are a great deal of advantages to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to put forward for you and your employees the retirement solutions that work for your best interests and individual circumstances. Certain plans are more apt for certain businesses, and our St. Charles, MO 401(k) advisors help pick out the best 401(k) company and plan for you and your employees. As independent retirement consultants, there is no restriction to which 401(k) companies we can work with . From offering financial planning education, guiding individual employees on retirement planning, and assisting you understand how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are an invaluable facet of any 401(k) plan.
Advantages of Offering a 401(k) Plan | St. Charles, MO 401(k) Companies
The benefits of providing retirement planning to employees through 401(k) companies are evident. Thirty-nine percent of employers who did not offer 401(k) plans stated that their company was not bringing in enough earnings. But there are a lot of reasons why initiating a 401(k) plan for your employees may be best for your bottom line down the road. 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 | St. Charles, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey found that 55% of Americans anticipated looking for a new job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer provides a retirement plan. What better way to keep your hardest working employees than assuring them that their financial well-being matters to you, even after they are no longer working for you?
Motivating Employees | St. Charles, MO 401(k) Companies
Many St. Charles, MO employers offer greater 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 best employees motivated to sustain their production.
Plan Startup Tax Credits | St. Charles, MO 401(k) Companies
Small and medium companies are able to obtain a tax credit for plan startup costs if they fulfill three requirements stipulated by the IRS:
- You had under 100 workers who were paid at least $5,000 in compensation from you the preceding year.
- You had a minimum of one plan participant who was a non-highly compensated employee.
- Your company did not already have a retirement plan benefiting substantially the same employees during the three years preceding the year for which you are claiming credit.
The tax credit is accessible for a maximum of three years, and there is another tax credit for attaching an automatic enrollment feature to a new 401(k) plan or one you already had.
Further Tax Benefits
In addition to the startup tax credit, the IRS offers two extra tax benefits for implementing a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not go over the limits set out in Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
One of the things that sets Correct Capital apart from other 401(k) advisors in St. Charles, MO is that we offer financial planning as a perk to plan participants. Through group education gatherings, we'll ensure your employees recognize the ideal investment opportunities for themselves, know how your 401(k) plan functions, and appreciate how it's helping them. We can also have one-on-one meetings to go through financial portfolio and asset management with individual staff. When a new employer joins your team and they had a 401(k) plan with their previous company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | St. Charles, MO 401(k) Companies
The St. Charles, MO 401(k) consultants at Correct Capital can help your companies implement 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 offers a wide array of investment options. Employers are able to 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, but 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 employee takes money out after preserving the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are in place specially for small businesses looking for a cost-efficient way to offer their staff a retirement plan. Like 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 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 much the same to regular 401(k)s, with the exception they must include employer contributions that are fully vested when made. In exchange for for required contributions, the IRS does not perform its yearly nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your St. Charles, MO business and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in St. Charles, MO include:
- Fiduciary Financial Advisor
- 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
The Correct Capital Difference | St. Charles, MO 401(k) Companies
Correct Capital is unique among St. Charles, MO 401(k) advisors because we provide the level of personalized care as smaller financial firms, but pair it with the same wisdom, accomplishment, and connections as larger firms. We provide independent and objective direction, always intended to do what's best for you; as an Accredited Investment Fiduciary®, it's our legal and moral responsibility to do so. Our retirement consultants have been trusted to connect businesses to 401(k) companies for more than two decades 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 go over your 401(k) needs today.