401(k) Companies in Swansea, IL
401(k) Companies in Swansea, IL. Establishing a 401(k) plan with trusted 401(k) advisors is an excellent way for medium and small businesses in Swansea, IL to attract and hold onto employees, incentivize great performance, and receive those much-needed tax breaks. Correct Capital Wealth Management has been introducing companies to trusted 401(k) companies in Swansea, IL for more than 20 years. Call us today at 877-930-4015 or contact us online to find out more about how Correct Capital can help your Swansea, IL business and your employees succeed.
As of 2020, defined-contribution (DC) plans like 401(k)s made up $9.9 trillion of the total $32.3 trillion in retirement plan assets 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 companies in the United States with under 50 employees provide a 401(k) plan as an employee benefit, and more than 33% have no current plans to do so. An additional 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 reason for employers to inquire about 401(k) companies and provide a plan was to incentivize their employees to put money aside responsibly for retirement. In order to do this effectively for your best employees, it is critical to reach out to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Swansea, IL.
There are a great deal of benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and secure 401(k) companies to put forward for you and your employees the retirement solutions that work for your needs and unique situation. Specific plans are more appropriate for certain employers, and our Swansea, IL 401(k) advisors help locate 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 work with . From offering financial planning education, guiding individual employees on retirement planning, and assisting you understand how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an invaluable facet of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Swansea, IL 401(k) Companies
The benefits of providing retirement planning to staff through 401(k) companies are obvious. Almost 40% of employers who did not offer 401(k) plans said that their company was not bringing in sufficient profit. But there are countless reasons why implementing a 401(k) plan for your employees could be best for your bottom line in the end. The 401(k) advisors at Correct Capital will put together a comprehensive guide to the various benefits certain programs will have for you. Among them are:
Attracting and Retaining Talent | Swansea, IL 401(k) Companies
We're enduring the Great Resignation; a recent survey stated that 55% of Americans expected to look for a different job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer has a retirement plan. What better way to hold on to your best employees than letting them know their financial well-being is important to you, even after they've moved on?
Motivating Employees | Swansea, IL 401(k) Companies
Many Swansea, IL employers offer higher contributions when specific performance goals are met. 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 keep up their performance.
Plan Startup Tax Credits | Swansea, IL 401(k) Companies
Small and medium companies can collect a tax credit for plan startup costs if they meet three requirements dictated by the IRS:
- You had 100 or fewer staff who were paid at least $5,000 in compensation from you the previous year.
- You had at least 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 benefited substantially the same employees.
The tax credit is accessible for a maximum of three years, and there is another tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Further Tax Benefits
Apart from the startup tax credit, the IRS offers two extra tax benefits for having a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not surpass the limits set out in Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and have the benefit of tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to Swansea, IL businesses. We'll work to lower your tax liability as part of our 401(k) services.
Employee Education
One of the aspects that makes Correct Capital different from other 401(k) consultants in Swansea, IL is that we offer financial planning as a perk to plan participants. Through group education gatherings, we'll make sure your employees know the ideal investment opportunities for themselves, understand how your 401(k) program works, and see how it's benefiting them. We can also use one-on-one meetings to go through financial portfolio and asset management with individual employees. When a new member joins your team and they had a 401(k) plan with their old company, we can help them with their 401(k) rollover.
Types of 401(k) Plans | Swansea, IL 401(k) Companies
The Swansea, IL 401(k) advisors at Correct Capital can help your companies initiate several 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 a range of investment options. Employers may match what their employees put in. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same 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 takes money out after maintaining 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 staff retirement benefits. Like a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- A matching contribution of up to 3% of an employee's earnings; 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 return for required contributions, the IRS does not perform its annual nondiscrimination tests.
In our first meeting, we'll get to know your Swansea, IL business and your employee's retirement needs to find the ideal type of 401(k) plan for you.
Other services we offer in Swansea, IL include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | Swansea, IL 401(k) Companies
Correct Capital stands out among Swansea, IL 401(k) advisors because we provide the level of personalized care as smaller advisory firms, but couple it with the same savvy, experience, and partnerships as larger firms. We offer independent and objective advice, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and moral responsibility to do so. Our retirement consultants have been trusted to connect employers to 401(k) companies for over two decades and currently 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.
