401(k) Companies in St. Peters, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in St. Peters, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a wonderful way for medium and small businesses in St. Peters, MO to draw and hold onto employees, encourage great work, and receive those much-needed tax breaks. Correct Capital Wealth Management has been introducing businesses to trustworthy 401(k) companies in St. Peters, MO for more than 20 years. Call us today at 314-930-401(k) or contact us online to learn more about what Correct Capital can do for your St. Peters, MO business and employees.
As of 2020, defined-contribution (DC) plans like 401(k)s accounted for $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 50% of all businesses in the United States with less than 50 employees offer a 401(k) plan to their employees, and more than one-third have no current intent to do so. A further 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 reported that the most frequent motive for employers to inquire about 401(k) companies and provide a plan was to encourage their employees to set money aside conscientiously for retirement. In order to do this successfully for your valued employees, it is essential to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in St. Peters, MO.
There are numerous 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 individual situation. Specific plans are more apt for certain companies, and our St. Peters, MO 401(k) advisors help locate the preferred 401(k) company and plan for you and your employees. As independent advisors, there is no limit to which 401(k) companies we can work with . From offering financial planning 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 a crucial part of any 401(k) plan.
Advantages of Offering a 401(k) Plan | St. Peters, MO 401(k) Companies
The advantages of offering retirement planning to workers through 401(k) companies are apparent. Thirty-nine percent of employers who did not offer 401(k) plans said that their business was not bringing in enough revenue. But there are many 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 extensive guide to the various benefits certain programs will have for you. Among them are:
Recruiting and Retaining Talent | St. Peters, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey stated that 55% of Americans expected to search for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer has a 401(k) plan. What better way to retain your hardest working employees than letting them know their financial health is important to you, even after they are no longer working for you?
Incentivizing Employees | St. Peters, MO 401(k) Companies
Many St. Peters, MO companies offer greater contributions when specific performance goals are met. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an effective way to keep your employees' motivation high and to keep up their performance.
Plan Startup Tax Credits | St. Peters, MO 401(k) Companies
Small and medium companies are able to collect a tax credit for plan startup expenses if they meet three requirements dictated by the IRS:
- You had less than 100 staff who were paid 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.
- In the three years prior, you did not already have a retirement plan in place that covered substantially the same employees.
The tax credit is accessible for a maximum of three years, and there is another tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.
Further Tax Advantages
Apart from the startup tax credit, the IRS offers two further tax benefits for having a 401(k) program:
- 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 posses tax deferral until distribution.
One of the things that sets Correct Capital apart from other 401(k) advisors in St. Peters, MO is that we offer financial planning as a benefit to plan participants. Through group education meetings, we'll make sure your employees understand the ideal investment options for themselves, know how your 401(k) plan functions, and see how it's helping them. We can also have one-on-one sessions to discuss financial portfolio and asset management with individual staff. When you hire a new employee that had a 401(k) plan with their old company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | St. Peters, MO 401(k) Companies
The St. Peters, MO 401(k) consultants at Correct Capital can help your business set up several different plans through several different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers a wide array of investment options. Employers are able to match 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, other than the fact that contributions are made with money you have already paid taxes on. Gains earned in the plan, such as interest, dividends, or capital gains, is tax-free when the individual withdraws funds after preserving the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are specially for small businesses who need a cost-efficient way to offer their employees a retirement plan. Like 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 up to 3% of a staff members pay; 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, except that they must include employer contributions that are fully vested when made. In exchange for for required contributions, the IRS does not conduct its yearly nondiscrimination tests.
In our first meeting, we'll gain an understanding of your St. Peters, MO company and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in St. Peters, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | St. Peters, MO 401(k) Companies
Correct Capital stands out among St. Peters, MO 401(k) advisors because we provide the degree of individualized care as smaller financial firms, but combine it with the same knowledge, experience, and partnerships as larger firms. We provide independent and objective advice, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and moral obligation to do so. Our retirement consultants have been trusted to introduce employers to 401(k) companies for over two decades and presently represent over $230 million in total plan assets across the United States. Call us at 314-930-401(k) or contact us online to talk over your 401(k) needs today.