401(k) Companies in Swansea, IL

401(k) Companies in Swansea, IL A Great 401(k) Plan Benefits You and Your Employees

401(k) Companies in Swansea, IL. Initiating a 401(k) plan with trustworthy 401(k) advisors is a wonderful way for small and mid-sized businesses in Swansea, IL to appeal to and retain employees, encourage great production, and receive those much-needed tax breaks. Correct Capital Wealth Management has been introducing companies to secure 401(k) companies in Swansea, IL for more than two decades. Call us today at 314-930-401(k) or contact us online to learn more about how Correct Capital can help your Swansea, IL business and your employees prosper.

As of 2020, defined-contribution (DC) plans like 401(k)s comprise $9.9 trillion of the total $32.3 trillion in retirement plan funds 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 half of all companies in the United States with less than 50 employees provide a 401(k) plan as an employee benefit, and over a third have no current plans to do so. A further study found that a 401(k) plan is the only instrument many Americans have for saving for retirement.

The J.P. Morgan survey stated that the most common motive for employers to explore 401(k) companies and offer a plan was to encourage their employees to save responsibly for retirement. In order to do this fruitfully for your best employees, it is important to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Swansea, IL.

There are countless advantages to utilizing 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 are in your best interests and unique circumstances. Certain plans work better for certain businesses, and our Swansea, IL 401(k) advisors help pick out the best 401(k) company and plan for you and your employees. As an independent advisory firm, there is no restraint to which 401(k) companies we can work with . From offering financial planning education, guiding individual employees on retirement planning, and assisting you maneuver how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an invaluable facet of any 401(k) program.

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Benefits of Offering a 401(k) Plan | Swansea, IL 401(k) Companies

The benefits of providing retirement planning to employees through 401(k) companies are evident. Almost 40% of employers who did not offer 401(k) plans gave their reason as being that their business was not bringing in enough earnings. But there are countless reasons why implementing a 401(k) plan for your employees may be best for your bottom line in the end. The 401(k) consultants at Correct Capital will put together a comprehensive guide to the various advantages certain plans will have for you. Among them are:

Recruiting and Retaining Talent | Swansea, IL 401(k) Companies

We're going through the Great Resignation; a recent survey discovered that 55% of Americans thought they would search for a different job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer offers a retirement plan. What better way to retain your favorite employees than letting them know their financial security is important to you, even after they are no longer working for you?

Motivating Employees | Swansea, IL 401(k) Companies

Many Swansea, IL employers give greater contributions when specific performance goals are met. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be a great way to keep your employees' motivation high and to maintain their performance.

Plan Startup Tax Credits | Swansea, IL 401(k) Companies

Small and medium companies can receive a tax credit for plan startup costs if they satisfy three requirements stipulated by the IRS:

  1. You had 100 or fewer workers who collected at least $5,000 in compensation from you the previous year.
  2. You had at least one plan participant who was a non-highly compensated employee.
  3. 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 accessible for up to three years, and there is another tax credit for adding an automatic enrollment feature to a new or extant 401(k) plan.

Further Tax Advantages

Other than the startup tax credit, the IRS offers two other tax benefits for having a 401(k) program:

  1. Employer contributions are tax-deductible to to the point that they do not go over the limits set out in Section 404 of the Internal Revenue Code.
  2. Elective deferrals and investment gains are not taxed and benefit from tax deferral until distribution.

Correct Capital's financial advisors also offer comprehensive tax planning services to Swansea, IL companies. We'll strive to decrease 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 Swansea, IL is that we offer financial planning as a benefit to plan participants. With group education gatherings, we'll make certain your employees understand the ideal investment options for themselves, understand how your 401(k) plan works, and appreciate how it's helping them. We can also use one-on-one sessions to go through financial portfolio and asset management with individual staff. When you hire a new employee that had a 401(k) plan with their previous company, we can assist them with their 401(k) rollover.

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Types of 401(k) Plans | Swansea, IL 401(k) Companies

The Swansea, IL 401(k) advisors at Correct Capital can help your companies initiate a variety of 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 numerous investment options. Employers may equal what their employees put in. Taxes are deducted when the savings and gains are withdrawn.
  • Roth 401(k) Plans: Roth plans are much the same traditional plans, but contributions are made with after-tax dollars. Income obtained in the plan, such as interest, dividends, or capital gains, is tax-free when the employee withdraws funds after continuing 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-effective way to offer their staff 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 no more than 3% of an employee's earnings; or
    • A non-elective contribution of 2% of an employee's earnings.
  • Safe Harbor 401(k) Plans: Safe Harbor plans are much the same 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 carry out its annual nondiscrimination tests.

When we first meet with you, we'll gain an understanding of your Swansea, IL business and your employee's retirement needs to identify the best type of 401(k) plan for you.

Other services we offer in Swansea, IL include:

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The Correct Capital Difference | Swansea, IL 401(k) Companies

Correct Capital stands out among Swansea, IL 401(k) advisors because we offer the degree of personalized attention as smaller financial firms, but combine it with the same wisdom, accomplishment, and partnerships as larger firms. We offer independent and objective guidance, always geared toward doing what's best for you; 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 at present we 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.

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