401(k) Companies in St. Louis, MO
401(k) Companies in St. Louis, MO. Establishing a 401(k) plan with dependable 401(k) advisors is a wonderful way for small and mid-sized businesses in St. Louis, MO to draw and retain employees, incentivize great work, and receive those much-needed tax breaks. Correct Capital Wealth Management has been introducing companies to trusted 401(k) companies in St. Louis, MO for more than 20 years. Call us today at 877-930-4015 or contact us online to find out 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 the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than 50% of all employers in the United States with under 50 employees provide a retirement plan as an employee benefit, and over one-third have no current plans to do so. Another 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 stated that the most frequent motivation for employers to inquire about 401(k) companies and provide a plan was to incentivize their employees to put money aside conscientiously for retirement. In order to do this successfully for your prized employees, it is essential to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in St. Louis, MO.
There are countless advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and secure 401(k) companies to bring you and your employees the retirement solutions that work for your best interests and individual circumstances. Specific plans work better for certain businesses, and our St. Louis, MO 401(k) advisors help pick out the best 401(k) company and plan for you and your employees. As independent retirement consultants, there is no limit to which 401(k) companies we can connect you to . From offering investment education, guiding 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) advisory services are an indispensable aspect of any 401(k) program.
Benefits of Offering a 401(k) Plan | St. Louis, MO 401(k) Companies
The advantages of providing retirement planning to staff through 401(k) companies are clear. 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 numerous reasons why setting up a 401(k) plan for your employees could be best for your bottom line down the road. The 401(k) consultants at Correct Capital will compile an extensive guide to the various advantages certain plans will have for you. Among them are:
Attracting and Retaining Talent | St. Louis, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey reported that 55% of Americans anticipated searching 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 hardest working employees than letting them know their financial security matters to you, even after they've left the workforce?
Motivating Employees | St. Louis, MO 401(k) Companies
Many St. Louis, MO companies offer greater contributions when their employees meet specific 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 sustain their performance.
Plan Startup Tax Credits | St. Louis, MO 401(k) Companies
Small and medium companies are able to receive a tax credit for plan startup costs if they meet three requirements laid out by the IRS:
- You had under 100 employees who received 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 business 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 obtainable for up to three years, and there is another tax credit for attaching an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Advantages
Other than the startup tax credit, the IRS offers two added tax benefits for having a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not surpass 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.
Correct Capital's financial advisors also offer extensive tax planning services to St. Louis, MO 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. Louis, MO is that we offer financial planning as a service to your participating employees. Through group education gatherings, we'll make sure your employees know the ideal investment options for themselves, know how your 401(k) plan works, and understand how it's helping them. We can also have one-on-one meetings to talk over financial portfolio and asset management with individual employees. When a new employer joins your team and they had a 401(k) plan with their prior 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) advisors at Correct Capital can help your companies implement many different plans through many different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that offers numerous investment options. Employers can match 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, but 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 are in place specifically for small businesses looking for a cost-efficient way to offer their workers retirement benefits. Similar to a traditional 401(k) plan, you may take money out of an employee's paycheck as their contribution. But, the employer must make either:
- A matching contribution of no more than 3% of a worker's pay; or
- A non-elective contribution of 2% of a staff members pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, with the exception they must include employer contributions that are fully vested when made. In consideration of for required contributions, the IRS does not perform its yearly nondiscrimination tests.
In our initial meeting, we'll get to know your St. Louis, MO business and your employee's retirement needs to find the best type of 401(k) plan for you.
Other services we offer in St. Louis, MO include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Retirement Plan Consultants
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | St. Louis, MO 401(k) Companies
Correct Capital stands out among St. Louis, MO 401(k) advisors because we offer the degree of personalized care as smaller advisory firms, but pair it with the same savvy, accomplishment, and connections as larger firms. We offer independent and objective direction, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and ethical responsibility to do so. Our retirement consultants have been trusted to connect employers to 401(k) companies for over 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 go over your 401(k) needs today.
