401(k) Companies in St. Clair County, IL
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in St. Clair County, IL. Establishing a 401(k) plan with trusted 401(k) advisors is a wonderful way for small and mid-sized businesses in St. Clair County, IL to attract and retain employees, encourage great work, and obtain those much-desired tax breaks. Correct Capital Wealth Management has been connecting businesses with secure 401(k) companies in St. Clair County, IL for more than 20 years. Call us today at 314-930-401(k) or contact us online to discover more about what Correct Capital can do for your St. Clair County, IL business and employees.
As of 2020, defined-contribution (DC) plans such as 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 companies in the United States with under 50 employees provide a retirement plan to their employees, and over a third have no present intent to do so. A different 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 stated that the most common reason for employers to explore 401(k) companies and offer a plan was to encourage their employees to put money aside conscientiously for retirement. In order to do this effectively for your prized employees, it is important to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in St. Clair County, IL.
There are numerous advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and secure 401(k) companies to put forward for you and your employees the retirement solutions that serve your best interests and individual 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 advisors, there is no restriction to which 401(k) companies we can work with . From offering financial planning education, advising individual employees on retirement planning, and helping you navigate how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a crucial facet of any 401(k) plan.
Benefits of Offering a 401(k) Plan | St. Clair County, IL 401(k) Companies
The benefits of offering retirement planning to workers through 401(k) companies are obvious. Thirty-nine percent of employers who did not offer 401(k) plans stated that their company was not bringing in enough income. But there are a lot of reasons why setting up a 401(k) plan for your employees could be best for your bottom line in the end. The 401(k) consultants at Correct Capital will put together a comprehensive guide to the various advantages certain plans will have for you. Among them are:
Attracting and Retaining Talent | St. Clair County, IL 401(k) Companies
We're going through the Great Resignation; a recent survey discovered that 55% of Americans anticipated looking for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer offers a retirement plan. What better way to keep your best employees than assuring them that their financial well-being is important to you, even after they've left the workforce?
Motivating Employees | St. Clair County, IL 401(k) Companies
Many St. Clair County, IL companies offer increased contributions when their employees achieve particular performance goals. 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 collect a tax credit for plan startup costs if they fulfill three requirements laid out 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 at least 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 attaching an automatic enrollment feature to a new or existing 401(k) plan.
Additional Tax Advantages
Other than the startup tax credit, the IRS offers two extra tax benefits for having a 401(k) program:
- 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 extensive tax planning services to St. Clair County, IL residents and employers. We'll work to decrease your tax liability as part of our 401(k) services.
One of the features that makes Correct Capital different from other 401(k) consultants in St. Clair County, IL is that we offer financial planning as a benefit to your participating employees. Through group education gatherings, we'll make sure your employees recognize the ideal investment opportunities for themselves, understand how your 401(k) plan works, and see how it's helping them. We can also have one-on-one meetings to go through financial portfolio and asset management with individual workers. When you hire a new employee that had a 401(k) plan with their old employer, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | St. Clair County, IL 401(k) Companies
The St. Clair County, IL 401(k) advisors at Correct Capital can help your business implement 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 offers a wide array of investment options. Employers can match what their employees put in. Taxes are taken out when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same traditional plans, other than the fact that 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 withdraws funds after maintaining the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans exist specially for small businesses who want a cost-effective way to offer their employees 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:
- A matching contribution of no more than 3% of a worker's 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, except that they must include employer contributions that are fully vested when made. In exchange for for required contributions, the IRS does not perform its annual nondiscrimination tests.
In our initial meeting, we'll gain an understanding of your St. Clair County, IL company and your employee's retirement needs to find the best type of 401(k) plan for you.
Other services we offer in St. Clair County, IL include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
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 provide the degree of personalized attention as smaller financial firms, but pair it with the same knowledge, experience, and partnerships as larger firms. We provide independent and objective counsel, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and moral duty to do so. Our retirement consultants have been trusted to introduce companies to 401(k) companies for more than 25 years and currently represent over $230 million in total plan assets nationwide. Call us at 314-930-401(k) or contact us online to discuss your 401(k) needs today.