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 dependable 401(k) advisors is an excellent way for small and mid-sized businesses in St. Louis, MO to draw and retain employees, incentivize great performance, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been introducing companies to dependable 401(k) companies in St. Louis, MO for more than two decades. 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, MO 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, 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 under 50 employees offer a retirement 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 avenue many Americans have for putting money aside for retirement.
The J.P. Morgan survey found that the most frequent motive for employers to look into 401(k) companies and provide a plan was to incentivize their employees to set money aside responsibly for retirement. In order to do this fruitfully for your best employees, it is important to reach out to a trusted, independent retirement planning advisory firm like Correct Capital based in St. Louis, MO.
There are a great deal of benefits to using 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 serve your needs and specific situation. Certain plans work better for certain businesses, and our St. Louis, MO 401(k) advisors help determine the best 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 investment education, advising individual employees on retirement planning, and helping you navigate how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are an indispensable aspect of any 401(k) plan.
Benefits of Offering a 401(k) Plan | St. Louis, MO 401(k) Companies
The advantages of providing retirement planning to employees through 401(k) companies are obvious. Almost 40% of employers who did not offer 401(k) plans said that their reason was that their business was not bringing in enough revenue. But there are a lot of reasons why initiating a 401(k) plan for your employees may end up being best for your bottom line. The 401(k) consultants at Correct Capital will compile an extensive guide to the many benefits certain programs will have for you. Among them are:
Recruiting and Retaining Talent | St. Louis, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey found that 55% of Americans anticipated looking for a different job in 2021 and 2022. Workers are 45% more at-ease about their retirement when their employer offers a retirement plan. What better way to keep your favorite employees than assuring them that their financial health matters to you, even after they are no longer working for you?
Motivating Employees | St. Louis, MO 401(k) Companies
Many St. Louis, MO businesses offer increased contributions when their employees achieve specific performance goals. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an effective way to keep your best employees motivated to keep up their production.
Plan Startup Tax Credits | St. Louis, MO 401(k) Companies
Small and medium companies can collect a tax credit for plan startup costs if they fulfill three requirements laid out by the IRS:
- You had 100 or fewer staff who collected at least $5,000 in compensation from you the year prior.
- 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 a maximum of three years, and there is a different tax credit for attaching 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 added tax benefits for implementing a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions 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.
One of the features that makes Correct Capital different from other 401(k) advisors in St. Louis, MO is that we offer financial planning as a benefit to your participating employees. With group education gatherings, we'll make sure your employees know the best investment opportunities for themselves, know how your 401(k) program functions, and understand how it's serving them. We can also have one-on-one sessions to talk over financial portfolio and asset management with individual employees. When a new member joins your team and they had a 401(k) plan with their previous company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | St. Louis, MO 401(k) Companies
The St. Louis, MO 401(k) consultants 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 program that offers numerous investment options. Employers are able to equal 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 made in the plan, such as interest, dividends, or capital gains, is tax-free when the individual withdraws money after continuing the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans exist specifically for small businesses who want a cost-efficient way to offer their workers retirement benefits. Like a traditional 401(k) plan, you may 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 similar to to regular 401(k)s, but the employer must make contributions that are fully vested when made. In return for required contributions, the IRS does not perform its yearly nondiscrimination tests.
When we first meet with you, we'll get to know your St. Louis, MO business and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in St. Louis, 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, MO 401(k) Companies
Correct Capital is unique among St. Louis, MO 401(k) advisors because we offer the level of personalized care as smaller advisory firms, but combine it with the same wisdom, experience, and partnerships as larger firms. We offer independent and objective advice, always geared toward doing what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and moral obligation to do so. Our retirement consultants have been trusted to connect businesses to 401(k) companies for more than 25 years and currently represent over $230 million in total plan assets throughout the United States. Call us at 314-930-401(k) or contact us online to discuss your 401(k) needs today.