401(k) Companies in St. Peters, MO
401(k) Companies in St. Peters, MO. Establishing a 401(k) plan with trusted 401(k) advisors is a great way for medium and small businesses in St. Peters, MO to draw and retain employees, encourage great production, and receive those much-needed tax breaks. Correct Capital Wealth Management has been connecting companies with secure 401(k) companies in St. Peters, MO for over 20 years. Call us today at 877-930-4015 or contact us online to find out more about how Correct Capital can help your St. Peters, MO business and your employees flourish.
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 capital 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 businesses in the United States with under 50 employees provide a 401(k) plan to their employees, and over 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 common motivation for employers to look into 401(k) companies and provide a plan was to encourage their employees to set money aside responsibly for retirement. In order to do this effectively for your best employees, it is crucial to consult a trusted, independent retirement planning advisory firm like Correct Capital based in St. Peters, MO.
There are a great deal of advantages to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and safe 401(k) companies to put forward for you and your employees the retirement solutions that serve your needs and unique situation. Certain plans are more apt for certain employers, and our St. Peters, MO 401(k) advisors help determine the best 401(k) company and plan for you and your employees. As independent advisors, there is no limit to which 401(k) companies we can connect you to . From offering financial planning education, counseling individual employees on retirement planning, and assisting you maneuver 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) plan.
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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. Peters, MO 401(k) Companies
The benefits of providing retirement planning to staff through 401(k) companies are obvious. Thirty-nine percent of employers who did not offer 401(k) plans said that their reason was that their company was not generating sufficient earnings. But there are many reasons why setting up a 401(k) plan for your employees could wind up being best for your bottom line. 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:
Recruiting and Retaining Talent | St. Peters, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey found that 55% of Americans anticipated searching for a different job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer provides a defined contribution plan. What better way to hang on to your hardest working employees than assuring them that you care about their financial health, even after they've left the workforce?
Motivating Employees | St. Peters, MO 401(k) Companies
Many St. Peters, MO companies offer greater contributions when certain performance goals are met. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be a great way to keep your employees' motivation high and to keep up their production.
Plan Startup Tax Credits | St. Peters, MO 401(k) Companies
Small and medium companies can get a tax credit for plan startup costs if they fulfill three requirements laid out by the IRS:
- You had 100 or fewer workers who were paid a minimum of $5,000 in compensation from you the preceding year.
- You had a minimum of 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 available for a maximum of three years, and there is an additional 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 other 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 dictated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and have the advantage of tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to St. Peters, MO residents and employers. We'll strive to reduce your tax liability as part of our 401(k) services.
Employee Education
One of the facets that makes Correct Capital different from other 401(k) advisors in St. Peters, MO is that we offer financial planning as a service to your participating staff. With group education meetings, we'll make certain your employees recognize the ideal investment opportunities for themselves, understand how your 401(k) plan works, and recognize how it's helping them. We can also have one-on-one sessions to go through financial portfolio and asset management with individual workers. 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 companies initiate a variety of different plans through a variety of different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that offers a range of investment options. Employers are able to equal 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, however 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 money after continuing 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 want a cost-effective 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. However, the employer must make either:
- An equal contribution of up to 3% of a worker's earnings; or
- A non-elective contribution of 2% of a worker's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, however they must include employer contributions that are fully vested when made. In consideration of for required contributions, the IRS does not perform its annual nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your St. Peters, MO business and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in St. Peters, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | St. Peters, MO 401(k) Companies
Correct Capital is distinctive among St. Peters, MO 401(k) advisors because we provide the level of personalized care as smaller advisory firms, but couple it with the same savvy, accomplishment, and partnerships as larger firms. We offer independent and objective counsel, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and moral duty to do so. Our retirement consultants have been trusted to connect companies to 401(k) companies for more than 25 years and presently represent over $230 million in total plan assets nationwide. Call us at 877-930-4015 or contact us online to go over your 401(k) needs today.
