401(k) Companies in Tower Grove, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Tower Grove, MO. Setting up a 401(k) plan with trusted 401(k) advisors is a wonderful way for small and mid-sized companies in Tower Grove, MO to draw and hold onto employees, encourage great performance, and get those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with trustworthy 401(k) companies in Tower Grove, 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 Tower Grove, 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 assets 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 employers in the United States with under 50 employees offer a 401(k) plan to their employees, and over a third have no current plans to do so. A different study found that a 401(k) plan is the only vehicle many Americans have for setting money aside for retirement.
The J.P. Morgan survey found that the most frequent reason for employers to research 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 prized employees, it is important to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in Tower Grove, MO.
There are a great deal of advantages to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and stable 401(k) companies to bring you and your employees the retirement solutions that serve your needs and unique circumstances. Certain plans work better for certain businesses, and our Tower Grove, MO 401(k) advisors help locate the preferred 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, advising individual employees on retirement planning, and assisting you maneuver how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a vital facet of any 401(k) program.
Advantages of Offering a 401(k) Plan | Tower Grove, MO 401(k) Companies
The benefits of offering retirement planning to workers through 401(k) companies are clear. Thirty-nine percent of employers who did not offer 401(k) plans gave their reason as being that their business was not generating enough revenue. But there are a lot of reasons why implementing a 401(k) plan for your employees might be best for your bottom line in the end. The 401(k) consultants at Correct Capital will put together an extensive guide to the various advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Tower Grove, MO 401(k) Companies
We're living through the Great Resignation; a recent survey discovered that 55% of Americans expected to look for a different job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer has a retirement plan. What better way to keep your favorite employees than letting them know you care about their financial security, even after they've moved on?
Incentivizing Employees | Tower Grove, MO 401(k) Companies
Many Tower Grove, MO companies offer greater contributions when their employees meet particular performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be a great way to keep your best employees motivated to continue their production.
Plan Startup Tax Credits | Tower Grove, MO 401(k) Companies
Small and medium companies can receive a tax credit for plan startup expenses if they meet three requirements dictated by the IRS:
- You had 100 or fewer workers who were paid at least $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 business did not already have a retirement plan benefiting substantially the same employees during the three years preceding the year for which you are claiming credit.
The tax credit is obtainable for up to three years, and there is an additional 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 additional tax benefits for sponsoring a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not exceed the limits stipulated 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 facets that makes Correct Capital different from other 401(k) advisors in Tower Grove, MO is that we offer financial planning as a service to plan participants. Through group education meetings, we'll make certain your employees understand the best investment options for themselves, understand how your 401(k) program works, and see how it's helping them. We can also have one-on-one meetings to discuss financial portfolio and asset management with individual employees. When a new employer joins your team and they had a 401(k) plan with their old employer, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Tower Grove, MO 401(k) Companies
The Tower Grove, MO 401(k) consultants at Correct Capital can help your companies set up several different plans through several different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes a wide array of investment options. Employers can equal their employees' contributions. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are much the same traditional plans, with the exception 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 employee withdraws funds after maintaining the account for 5 years and they are at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans are in place specially for small businesses who want a cost-effective way to offer their employees retirement benefits. Like a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. However, the employer must make either:
- An equal contribution of up to 3% of a staff members earnings; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, but they must include employer contributions that are fully vested when made. In exchange for for required contributions, the IRS does not conduct its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Tower Grove, MO business and your employee's retirement needs to identify the ideal type of 401(k) plan for you.
Other services we offer in Tower Grove, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Tower Grove, MO 401(k) Companies
Correct Capital stands out among Tower Grove, MO 401(k) advisors because we provide the level of individualized care as smaller advisory firms, but couple it with the same wisdom, professionalism, and partnerships as larger firms. We offer independent and objective guidance, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and moral duty to do so. Our retirement consultants have been trusted to introduce companies to 401(k) companies for more than 25 years and presently represent over $230 million in total plan assets throughout the United States. Call us at 314-930-401(k) or contact us online to discuss your 401(k) needs today.