401(k) Companies in Sunset Hills, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Sunset Hills, MO. Initiating a 401(k) plan with trusted 401(k) advisors is an excellent way for small and mid-sized companies in Sunset Hills, MO to attract and hold onto employees, encourage great production, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been connecting businesses with trustworthy 401(k) companies in Sunset Hills, MO for over 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 Sunset Hills, 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, as reported by 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 offer a retirement plan to their employees, and over 33% have no present plans to do so. A further study found that a 401(k) plan is the only vehicle many Americans have for saving for retirement.
The J.P. Morgan survey stated that the most frequent motive for employers to inquire about 401(k) companies and provide a plan was to incentivize their employees to set money aside responsibly for retirement. In order to do this effectively for your valued employees, it is crucial to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Sunset Hills, MO.
There are numerous advantages 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 Sunset Hills, MO 401(k) advisors help pick out the best 401(k) company and plan for you and your employees. As an independent retirement planning firm, there is no restraint to which 401(k) companies we can work with . From offering investment education, guiding individual employees on retirement planning, and helping you understand how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a crucial facet of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Sunset Hills, 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 sufficient profit. But there are many reasons why initiating a 401(k) plan for your employees may wind up being best for your bottom line. The 401(k) advisors at Correct Capital will put together a comprehensive guide to the various advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Sunset Hills, MO 401(k) Companies
We're living through the Great Resignation; a recent survey discovered that 55% of Americans anticipated searching for a different job in 2021 and 2022. Workers feel 45% more assured about their retirement when their employer offers a defined contribution plan. What better way to keep your best employees than assuring them that their financial security matters to you, even after they've moved on?
Motivating Employees | Sunset Hills, MO 401(k) Companies
Many Sunset Hills, MO companies give higher 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 continue their performance.
Plan Startup Tax Credits | Sunset Hills, MO 401(k) Companies
Small and medium companies are able to receive a tax credit for plan startup costs if they satisfy three requirements laid out by the IRS:
- You had under 100 employees who collected a minimum of $5,000 in compensation from you the previous year.
- You had a minimum of one plan participant who was a non-highly compensated employee.
- In the three preceding years, you did not already have a retirement plan in place that covered substantially the same employees.
The tax credit is obtainable for a maximum of three years, and there is another tax credit for adding an automatic enrollment feature to a new or existing 401(k) plan.
Additional Tax Advantages
Apart from the startup tax credit, the IRS offers two extra tax benefits for sponsoring a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not go over the limits stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
One of the facets that sets Correct Capital apart from other 401(k) consultants in Sunset Hills, MO is that we offer financial planning as a service to plan participants. Through group education gatherings, we'll make certain your employees understand the ideal investment opportunities for themselves, understand how your 401(k) program functions, and recognize how it's helping them. We can also use 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 employer, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Sunset Hills, MO 401(k) Companies
The Sunset Hills, MO 401(k) advisors at Correct Capital can help your companies implement many different plans through several 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 may match their employees' contributions. Taxes are taken out when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, with the exception contributions are made with after-tax dollars. Gains earned in the plan, such as interest, dividends, or capital gains, is tax-free when the individual takes money out after continuing the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are specifically for small businesses who need a cost-effective way to offer their staff retirement benefits. Similar to a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- A matching contribution of no more than 3% of an employee's earnings; or
- A non-elective contribution of 2% of an employee's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, with the exception they must include employer contributions that are fully vested when made. In return 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 Sunset Hills, MO business and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in Sunset Hills, MO include:
- Retirement Planning
- Rollover 401(k)
- Wealth Management
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
The Correct Capital Difference | Sunset Hills, MO 401(k) Companies
Correct Capital stands out among Sunset Hills, MO 401(k) advisors because we provide the degree of personalized attention as smaller advisory firms, but combine it with the same wisdom, experience, and partnerships as larger firms. We provide 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 duty 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 across the United States. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.