401(k) Companies in St. Louis Hills, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in St. Louis Hills, MO. Initiating a 401(k) plan with dependable 401(k) advisors is a wonderful way for medium and small businesses in St. Louis Hills, MO to appeal to and retain employees, encourage great work, and get those much-desired tax breaks. Correct Capital Wealth Management has been connecting companies with dependable 401(k) companies in St. Louis Hills, MO 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. Louis Hills, MO business and employees.
As of 2020, defined-contribution (DC) plans such as 401(k)s constitute $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 businesses in the United States with under 50 employees offer a retirement plan as an employee benefit, and over one-third have no current intentions to do so. An additional study found that a 401(k) plan is the only vehicle many Americans have for putting money aside for retirement.
The J.P. Morgan survey stated that the most common motivation for employers to inquire about 401(k) companies and offer a plan was to encourage their employees to put money aside responsibly for retirement. In order to do this fruitfully for your prized employees, it is important to reach out to a trusted, independent retirement planning advisory firm like Correct Capital based in St. Louis Hills, MO.
There are a great deal of benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and stable 401(k) companies to offer you and your employees the retirement solutions that are in your needs and individual situation. Specific plans work better for certain businesses, and our St. Louis Hills, MO 401(k) advisors help determine the best 401(k) company and plan for you and your employees. As independent advisors, there is no limit to which 401(k) companies we can connect you to . From offering investment education, advising individual employees on retirement planning, and helping you maneuver how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a vital facet of any 401(k) program.
Benefits of Offering a 401(k) Plan | St. Louis Hills, MO 401(k) Companies
The advantages of offering retirement planning to workers 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 countless reasons why initiating 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 many advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | St. Louis Hills, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey stated that 55% of Americans thought they would search for a different job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer provides a retirement plan. What better way to hang on to your favorite employees than assuring them that their financial security is important to you, even after they are no longer working for you?
Motivating Employees | St. Louis Hills, MO 401(k) Companies
Many St. Louis Hills, MO businesses offer greater contributions when their employees achieve certain performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to maintain their performance.
Plan Startup Tax Credits | St. Louis Hills, MO 401(k) Companies
Small and medium companies can obtain a tax credit for plan startup costs if they meet three requirements dictated by the IRS:
- You had 100 or fewer staff who received at least $5,000 in compensation from you the year prior.
- 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 benefited substantially the same employees.
The tax credit is available for up to three years, and there is a different tax credit for adding an automatic enrollment feature to a new or existing 401(k) plan.
Further Tax Benefits
Other than the startup tax credit, the IRS offers two added tax benefits for implementing a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not exceed the limits dictated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
One of the facets that makes Correct Capital different from other 401(k) consultants in St. Louis Hills, MO is that we offer financial planning as a perk to your participating employees. With group education meetings, we'll make sure your employees recognize the ideal investment opportunities for themselves, are aware of how your 401(k) plan functions, and understand how it's helping them. We can also have one-on-one meetings to discuss financial portfolio and asset management with individual workers. When a new member joins your team and they had a 401(k) plan with their old company, we can help them with their 401(k) rollover.
Types of 401(k) Plans | St. Louis Hills, MO 401(k) Companies
The St. Louis Hills, MO 401(k) advisors at Correct Capital can help your business initiate several different plans through a variety of 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 can equal what their employees put in. Taxes are deducted when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, except that contributions are made with after-tax dollars. Income made 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 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans are specifically for small businesses who need a cost-effective way to offer their employees a retirement plan. Like a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- A matching contribution of up to 3% of a worker's earnings; or
- A non-elective contribution of 2% of an employee's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, except that the employer is required to make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not conduct its annual nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your St. Louis Hills, MO business and your employee's retirement needs to find the ideal type of 401(k) plan for you.
Other services we offer in St. Louis Hills, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | St. Louis Hills, MO 401(k) Companies
Correct Capital is unique among St. Louis Hills, MO 401(k) advisors because we provide the degree of individualized care as smaller financial firms, but combine it with the same wisdom, professionalism, and connections as larger firms. We offer independent and objective guidance, 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 connect employers to 401(k) companies for over two decades and at present we 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.