401(k) Companies in St. Clair County, IL
401(k) Companies in St. Clair County, IL. Establishing a 401(k) plan with dependable 401(k) advisors is an excellent way for medium and small companies in St. Clair County, IL to draw and retain employees, incentivize great production, and receive those much-desired tax breaks. Correct Capital Wealth Management has been introducing businesses to trustworthy 401(k) companies in St. Clair County, IL for more than 20 years. Call us today at 877-930-4015 or contact us online to discover more about how Correct Capital can help your St. Clair County, IL business and your employees succeed.
As of 2020, defined-contribution (DC) plans like 401(k)s comprise $9.9 trillion of the total $32.3 trillion in retirement plan capital 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 businesses in the United States with under 50 employees offer a 401(k) plan as an employee benefit, and over 33% have no present plans to do so. A different study found that a 401(k) plan is the only avenue many Americans have for saving for retirement.
The J.P. Morgan survey reported that the most common reason for employers to look into 401(k) companies and provide a plan was to encourage their employees to set money aside conscientiously for retirement. In order to do this effectively for your prized employees, it is important to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in St. Clair County, IL.
There are numerous benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and safe 401(k) companies to offer you and your employees the retirement solutions that work for your needs and specific situation. Specific plans are more appropriate for certain businesses, and our St. Clair County, IL 401(k) advisors help locate the preferred 401(k) company and plan for you and your employees. As independent retirement consultants, there is no limit to which 401(k) companies we can connect you to . From offering investment education, counseling individual employees on retirement planning, and helping you understand how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a vital aspect of any 401(k) plan.
Benefits of Offering a 401(k) Plan | St. Clair County, IL 401(k) Companies
The benefits of providing retirement planning to staff through 401(k) companies are obvious. Almost 40% of employers who did not offer 401(k) plans said that their reason was that their company was not bringing in enough profit. But there are a lot of reasons why initiating a 401(k) plan for your employees might wind up being best for your bottom line. The 401(k) consultants at Correct Capital will put together an extensive guide to the many advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | St. Clair County, IL 401(k) Companies
We're enduring the Great Resignation; a recent survey found that 55% of Americans thought they would look for a different job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer provides a retirement plan. What better way to retain your favorite employees than assuring them that you care about their financial security, even after they've left the workforce?
Incentivizing Employees | St. Clair County, IL 401(k) Companies
Many St. Clair County, IL businesses offer increased 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 sustain their production.
Plan Startup Tax Credits | St. Clair County, IL 401(k) Companies
Small and medium companies are able to receive a tax credit for plan startup expenses if they fulfill three requirements stipulated by the IRS:
- You had 100 or fewer workers who were paid at least $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 years prior, you did not already have a retirement plan in place that covered substantially the same employees.
The tax credit is accessible for up to three years, and there is a different tax credit for adding an automatic enrollment feature to a new or extant 401(k) plan.
Additional Tax Benefits
In addition to the startup tax credit, the IRS offers two extra tax benefits for sponsoring 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 have the benefit of tax deferral until distribution.
Correct Capital's financial advisors also offer comprehensive tax planning services to St. Clair County, IL companies. We'll strive to lower your tax liability as part of our 401(k) services.
Employee Education
One of the aspects that makes Correct Capital different from other 401(k) advisors in St. Clair County, IL is that we offer financial planning as a service to your participating staff. With group education gatherings, we'll make certain your employees understand the best investment opportunities for themselves, know how your 401(k) program functions, and appreciate how it's helping them. We can also have one-on-one sessions to talk over financial portfolio and asset management with individual staff. When a new member joins your team and they had a 401(k) plan with their prior employer, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | St. Clair County, IL 401(k) Companies
The St. Clair County, IL 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 program that offers a wide array of investment options. Employers can equal what their employees put in. Taxes are taken out when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, however contributions are made with money you have already paid taxes on. Income earned in the plan, such as interest, dividends, or capital gains, is tax-free when the employee 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 looking for a cost-efficient way to offer their employees retirement benefits. Like 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 earnings; or
- A non-elective contribution of 2% of a worker'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 consideration of for required contributions, the IRS does not conduct its annual nondiscrimination tests.
In our first meeting, we'll get to know your St. Clair County, IL business and your employee's retirement needs to identify the ideal type of 401(k) plan for you.
Other services we offer in St. Clair County, IL 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
- Social Security Consultants Near Me
The Correct Capital Difference | St. Clair County, IL 401(k) Companies
Correct Capital is unique among St. Clair County, IL 401(k) advisors because we offer the level of individualized attention as smaller advisory firms, but couple it with the same savvy, accomplishment, and connections as larger firms. We provide independent and objective advice, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and ethical responsibility to do so. Our retirement consultants have been trusted to connect companies to 401(k) companies for more than 25 years and currently represent over $230 million in total plan assets throughout the United States. Call us at 877-930-4015 or contact us online to talk over your 401(k) needs today.
