401(k) Companies in St. Louis, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in St. Louis, MO. Initiating a 401(k) plan with trustworthy 401(k) advisors is a great way for small and mid-sized companies in St. Louis, MO to appeal to and hold onto employees, encourage great production, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been introducing businesses to secure 401(k) companies in St. Louis, MO for over 20 years. Call us today at 314-930-401(k) or contact us online to find out more about how Correct Capital can help your St. Louis, MO business and your employees thrive.
As of 2020, defined-contribution (DC) plans like 401(k)s made up $9.9 trillion of the total $32.3 trillion in retirement plan funds held in the United States, as reported by 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 offer a 401(k) plan as an employee benefit, and more than a third have no present aim to do so. Another study found that a 401(k) plan is the only instrument many Americans have for saving for retirement.
The J.P. Morgan survey stated that the most common incentive for employers to inquire about 401(k) companies and provide a plan was to encourage their employees to put money aside responsibly for retirement. In order to do this successfully for your valued employees, it is crucial to consult a trusted, independent retirement planning advisory firm like Correct Capital based in St. Louis, MO.
There are various advantages to utilizing 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 work for your best interests and individual situation. Specific plans work better for certain employers, and our St. Louis, MO 401(k) advisors help determine the preferred 401(k) company and plan for you and your employees. As an independent retirement planning firm, 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 assisting you navigate how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an invaluable part of any 401(k) program.
Advantages of Offering a 401(k) Plan | St. Louis, MO 401(k) Companies
The benefits of offering retirement planning to workers through 401(k) companies are apparent. Almost 40% of employers who did not offer 401(k) plans stated that their company was not bringing in enough income. But there are countless reasons why initiating a 401(k) plan for your employees might be best for your bottom line in the end. The 401(k) consultants at Correct Capital will put together an extensive guide to the myriad benefits certain plans will have for you. Among them are:
Recruiting and Retaining Talent | St. Louis, MO 401(k) Companies
We're living through the Great Resignation; a recent survey discovered that 55% of Americans anticipated looking for a different job in 2021 and 2022. Workers feel 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 letting them know you care about their financial security, even after they are no longer working for you?
Motivating Employees | St. Louis, MO 401(k) Companies
Many St. Louis, MO employers give increased contributions when their employees accomplish specific performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be a great way to keep your best employees motivated to maintain their production.
Plan Startup Tax Credits | St. Louis, MO 401(k) Companies
Small and medium companies can obtain a tax credit for plan startup expenses if they fulfill three requirements laid out by the IRS:
- You had 100 or fewer employees who collected at least $5,000 in compensation from you the preceding year.
- You had at least one plan participant who was a non-highly compensated employee.
- Your company did not already have a retirement plan covering 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 another tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Advantages
Apart from the startup tax credit, the IRS offers two additional tax benefits for sponsoring a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not surpass the limits set out in Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and posses tax deferral until distribution.
One of the features that makes Correct Capital different from other 401(k) consultants in St. Louis, MO is that we offer financial planning as a benefit to plan participants. Through group education gatherings, we'll ensure your employees recognize the best investment opportunities for themselves, are aware of how your 401(k) plan functions, and see how it's benefiting them. We can also use one-on-one sessions to talk over financial portfolio and asset management with individual workers. When you hire a new employee that had a 401(k) plan with their previous employer, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | St. Louis, MO 401(k) Companies
The St. Louis, MO 401(k) advisors at Correct Capital can help your business set up 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 includes numerous investment options. Employers are able to match their employees' contributions. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, other than the fact that 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 individual withdraws money after preserving 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 who need a cost-effective way to offer their staff retirement benefits. Similar to a traditional 401(k) plan, you can take money out of an employee's paycheck as their contribution. But, 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 earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, other than the fact that 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 gain an understanding of your St. Louis, MO company and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in St. Louis, MO include:
- 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
- Retirement Calculator
- Retirement Planning
The Correct Capital Difference | St. Louis, MO 401(k) Companies
Correct Capital stands out among St. Louis, MO 401(k) advisors because we provide the degree of individualized care as smaller advisory firms, but combine it with the same wisdom, accomplishment, and connections as larger firms. We offer independent and objective advice, always intended to do what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and ethical responsibility to do so. Our retirement consultants have been trusted to introduce businesses to 401(k) companies for more than two decades and currently represent over $230 million in total plan assets nationwide. Call us at 314-930-401(k) or contact us online to talk over your 401(k) needs today.