401(k) Companies in St. Louis Hills, MO
401(k) Companies in St. Louis Hills, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a great way for small and mid-sized companies in St. Louis Hills, MO to attract and retain employees, incentivize great production, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been introducing employers to trustworthy 401(k) companies in St. Louis Hills, MO for over two decades. Call us today at 877-930-4015 or contact us online to learn more about how Correct Capital can help your St. Louis Hills, MO business and your employees thrive.
As of 2020, defined-contribution (DC) plans like 401(k)s constitute $9.9 trillion of the total $32.3 trillion in retirement plan assets held in the United States, according to the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than half of all employers in the United States with under 50 employees provide a 401(k) plan to their employees, and more than 33% have no present aim 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 found that the most frequent motive for employers to explore 401(k) companies and provide a plan was to encourage their employees to save responsibly for retirement. In order to do this successfully for your prized employees, it is critical to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in St. Louis Hills, MO.
There are countless benefits to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and stable 401(k) companies to offer you and your employees the retirement solutions that serve your best interests and individual circumstances. Certain plans are more appropriate for certain businesses, and our St. Louis Hills, MO 401(k) advisors help locate the best 401(k) company and plan for you and your employees. As an independent advisory firm, there is no restraint to which 401(k) companies we can work with . 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 facet of any 401(k) program.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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Advantages of Offering a 401(k) Plan | St. Louis Hills, MO 401(k) Companies
The advantages of offering retirement planning to employees through 401(k) companies are obvious. Almost 40% of employers who did not offer 401(k) plans stated that their company was not bringing in sufficient revenue. But there are numerous reasons why setting up a 401(k) plan for your employees might end up being best for your bottom line. The 401(k) consultants at Correct Capital will compile an all-inclusive guide to the various benefits certain programs will have for you. Among them are:
Attracting and Retaining Talent | St. Louis Hills, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey reported that 55% of Americans expected to look for a different job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer offers a 401(k) plan. What better way to hold on to your favorite employees than assuring them that their financial well-being is important to you, even after they are no longer working for you?
Incentivizing Employees | St. Louis Hills, MO 401(k) Companies
Many St. Louis Hills, MO 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 an excellent way to keep your best employees motivated to keep up their production.
Plan Startup Tax Credits | St. Louis Hills, MO 401(k) Companies
Small and medium companies are able to collect a tax credit for plan startup expenses if they satisfy three requirements stipulated by the IRS:
- You had 100 or fewer employees 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 years prior, you did not already have a retirement plan in place that benefited substantially the same employees.
The tax credit is obtainable for a maximum of three years, and there is a different tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Advantages
Besides the startup tax credit, the IRS offers two further tax benefits for having a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not surpass 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. Louis Hills, MO companies. We'll strive to reduce your tax liability as part of our 401(k) services.
Employee Education
One of the things that makes Correct Capital different from other 401(k) advisors in St. Louis Hills, MO is that we offer financial planning as a service to plan participants. Through group education gatherings, we'll make sure your employees recognize the ideal investment options for themselves, are aware of how your 401(k) plan works, and recognize how it's serving them. We can also use one-on-one meetings to go through financial portfolio and asset management with individual employees. When a new employer joins your team and they had a 401(k) plan with their old company, we can offer assistance 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 set up a variety of different plans through a variety of different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers numerous investment options. Employers may equal their employees' contributions. Taxes are paid when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, except that contributions are made with money you have already paid taxes on. Gains made in the plan, such as interest, dividends, or capital gains, is tax-free when the employee takes money out after preserving the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans are specially for small businesses who want a cost-efficient way to offer their employees a retirement plan. Similar to a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. However, the employer must make either:
- An equal contribution of up to 3% of a staff members earnings; 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, but 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 first meeting, we'll get to know your St. Louis Hills, MO company and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in St. Louis Hills, MO include:
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 offer the degree of individualized care as smaller financial firms, but combine it with the same savvy, accomplishment, and partnerships as larger firms. We offer independent and objective counsel, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and moral responsibility to do so. Our retirement consultants have been trusted to connect 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.
