401(k) Companies in St. Charles, MO
401(k) Companies in St. Charles, MO. Establishing a 401(k) plan with trusted 401(k) advisors is an excellent way for small and mid-sized businesses in St. Charles, MO to draw and retain employees, encourage great production, and receive those much-desired tax breaks. Correct Capital Wealth Management has been introducing businesses to trusted 401(k) companies in St. Charles, 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, MO business and your employees flourish.
As of 2020, defined-contribution (DC) plans such as 401(k)s made up $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 50% of all companies in the United States with under 50 employees provide a 401(k) plan as an employee benefit, and over one-third have no current intentions to do so. A further study found that a 401(k) plan is the only avenue many Americans have for putting money aside for retirement.
The J.P. Morgan survey found that the most frequent incentive for employers to look into 401(k) companies and provide a plan was to incentivize their employees to put money aside conscientiously for retirement. In order to do this fruitfully for your best employees, it is important to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in St. Charles, MO.
There are various advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and safe 401(k) companies to put forward for you and your employees the retirement solutions that work for your needs and individual situation. Specific plans are more appropriate for certain employers, and our St. Charles, MO 401(k) advisors help determine the best 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 connect you to . From offering financial planning education, guiding individual employees on retirement planning, and assisting you navigate how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an indispensable facet of any 401(k) plan.
Benefits of Offering a 401(k) Plan | St. Charles, MO 401(k) Companies
The advantages of offering retirement planning to workers through 401(k) companies are obvious. Thirty-nine percent of employers who did not offer 401(k) plans said that their reason was that their business was not bringing in enough profit. But there are numerous reasons why setting up a 401(k) plan for your employees might be best for your bottom line in the end. The 401(k) advisors at Correct Capital will compile an extensive guide to the many advantages certain programs will have for you. Among them are:
Attracting and Retaining Talent | St. Charles, MO 401(k) Companies
We're going through the Great Resignation; a recent survey found that 55% of Americans anticipated searching for a different job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer provides a defined contribution plan. What better way to keep your best employees than letting them know their financial well-being is important to you, even after they've left the workforce?
Incentivizing Employees | St. Charles, MO 401(k) Companies
Many St. Charles, MO companies give greater contributions when their employees achieve specific performance goals. 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 maintain their production.
Plan Startup Tax Credits | St. Charles, MO 401(k) Companies
Small and medium companies are able to collect a tax credit for plan startup expenses if they satisfy three requirements laid out by the IRS:
- You had less than 100 workers who were paid a minimum of $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 up to three years, and there is a further tax credit for adding an automatic enrollment feature to a new or extant 401(k) plan.
Further Tax Benefits
Apart from the startup tax credit, the IRS offers two further tax benefits for sponsoring a 401(k) program:
- 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 have the advantage of tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to St. Charles, MO residents and employers. We'll strive to lower your tax liability as part of our 401(k) services.
Employee Education
One of the features that makes Correct Capital different from other 401(k) advisors in St. Charles, MO is that we offer financial planning as a benefit to your participating employees. Through group education meetings, we'll ensure your employees understand the best investment options for themselves, are aware of how your 401(k) program functions, and understand how it's serving them. We can also use one-on-one sessions to discuss financial portfolio and asset management with individual employees. When you hire a new employee that had a 401(k) plan with their prior employer, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | St. Charles, MO 401(k) Companies
The St. Charles, MO 401(k) advisors at Correct Capital can help your companies set up several different plans through many different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that includes a range of investment options. Employers are able to equal what their employees put in. Taxes are paid when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, other than the fact that contributions are made with money you have already paid taxes on. Gains earned 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 are specifically for small businesses who want a cost-efficient way to offer their workers a retirement plan. Similar to a traditional 401(k) plan, you may 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 a staff members pay; or
- A non-elective contribution of 2% of a worker's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, with the exception the employer must make contributions that are fully vested when made. In exchange for for required contributions, the IRS does not conduct its annual nondiscrimination tests.
In our first meeting, we'll gain an understanding of your St. Charles, MO business and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in St. Charles, 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, MO 401(k) Companies
Correct Capital is distinctive among St. Charles, MO 401(k) advisors because we offer the degree of personalized care as smaller advisory firms, but combine it with the same wisdom, accomplishment, and connections 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 moral responsibility to do so. Our retirement consultants have been trusted to introduce employers to 401(k) companies for over 25 years and currently represent over $230 million in total plan assets across the United States. Call us at 877-930-4015 or contact us online to talk over your 401(k) needs today.
