401(k) Companies in St. Clair County, IL
401(k) Companies in St. Clair County, IL. Initiating a 401(k) plan with trusted 401(k) advisors is a wonderful way for medium and small businesses in St. Clair County, IL to draw and retain employees, incentivize great work, and receive those much-needed tax breaks. Correct Capital Wealth Management has been connecting businesses with trusted 401(k) companies in St. Clair County, IL for over two decades. 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 prosper.
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 funds 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 50% of all businesses in the United States with less than 50 employees provide a 401(k) plan to their employees, and more than a third have no present intentions to do so. A further study found that a 401(k) plan is the only avenue many Americans have for setting money aside for retirement.
The J.P. Morgan survey found that the most common motivation for employers to look into 401(k) companies and provide a plan was to encourage their employees to set money aside responsibly for retirement. In order to do this effectively for your best 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 a great deal of advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and safe 401(k) companies to offer you and your employees the retirement solutions that serve your needs and unique circumstances. Specific plans are more apt for certain businesses, and our St. Clair County, IL 401(k) advisors help identify the preferred 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 work with . From offering financial planning education, guiding 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 aspect of any 401(k) program.
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 apparent. Thirty-nine percent of employers who did not offer 401(k) plans gave their reason as being that their company was not bringing in enough profit. But there are many reasons why setting up a 401(k) plan for your employees may wind up being best for your bottom line. The 401(k) consultants at Correct Capital will put together an all-inclusive guide to the many benefits certain plans will have for you. Among them are:
Attracting and Retaining Talent | St. Clair County, IL 401(k) Companies
We're living through the Great Resignation; a recent survey found that 55% of Americans thought they would look for a new job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer offers a 401(k) plan. What better way to keep your best employees than assuring them that you care about their financial health, even after they've moved on?
Incentivizing Employees | St. Clair County, IL 401(k) Companies
Many St. Clair County, IL businesses give higher contributions when their employees achieve certain performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be a successful way to keep your employees' motivation high and to keep up 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 expenses if they satisfy three requirements dictated by the IRS:
- You had less than 100 workers who were paid a minimum of $5,000 in compensation from you the year prior.
- You had at least one plan participant who was a non-highly compensated employee.
- In the three preceding years, you did not already have a retirement plan in place that covered substantially the same employees.
The tax credit is available for a maximum of three years, and there is a further tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Advantages
In addition to the startup tax credit, the IRS offers two additional tax benefits for sponsoring a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not go over the limits stipulated 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 all-inclusive 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 things that sets Correct Capital apart from other 401(k) consultants in St. Clair County, IL is that we offer financial planning as a perk to your participating staff. With group education gatherings, we'll make certain your employees understand the ideal investment options for themselves, know how your 401(k) program works, and recognize how it's helping them. We can also use one-on-one sessions 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 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 several different plans through a variety of different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes a wide array of investment options. Employers may equal what their employees put in. Taxes are taken out when the savings and gains 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. Income earned in the plan, such as interest, dividends, or capital gains, is tax-free when the employee takes funds out after continuing the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans are specifically for small businesses who need a cost-efficient way to offer their employees retirement benefits. 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 an employee's earnings; or
- A non-elective contribution of 2% of a worker's pay.
- 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 return for required contributions, the IRS does not perform its annual nondiscrimination tests.
When we first meet with you, we'll get to know your St. Clair County, IL business and your employee's retirement needs to offer 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
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 level of individualized care as smaller financial firms, but pair it with the same savvy, experience, and partnerships as larger firms. We provide independent and objective direction, always with your best interest in mind; 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 two decades and presently represent over $230 million in total plan assets throughout the United States. Call us at 877-930-4015 or contact us online to discuss your 401(k) needs today.
