401(k) Companies in Tower Grove, MO
401(k) Companies in Tower Grove, MO. Setting up a 401(k) plan with trustworthy 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 production, and receive those much-needed tax breaks. Correct Capital Wealth Management has been connecting companies with trustworthy 401(k) companies in Tower Grove, MO for over two decades. Call us today at 877-930-4015 or contact us online to discover 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 funds held in the United States, according to the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than 50% of all companies in the United States with under 50 employees provide a retirement plan to their employees, and more than a third 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 look into 401(k) companies and provide a plan was to incentivize their employees to save conscientiously for retirement. In order to do this successfully for your prized employees, it is essential to consult a trusted, independent retirement planning advisory firm like Correct Capital based in Tower Grove, MO.
There are various benefits to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and safe 401(k) companies to offer you and your employees the retirement solutions that work for your needs and individual circumstances. Specific plans are more apt for certain businesses, and our Tower Grove, MO 401(k) advisors help recognize the preferred 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 a vital aspect of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Tower Grove, MO 401(k) Companies
The advantages of offering retirement planning to staff through 401(k) companies are apparent. Almost 40% of employers who did not offer 401(k) plans said that their reason was that their company was not generating enough revenue. But there are a lot of reasons why initiating a 401(k) plan for your employees might be best for your bottom line in the end. The 401(k) advisors at Correct Capital will put together a comprehensive guide to the many advantages certain plans will have for you. Among them are:
Attracting and Retaining Talent | Tower Grove, MO 401(k) Companies
We're going through the Great Resignation; a recent survey discovered that 55% of Americans anticipated looking for a different job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer has a defined contribution plan. What better way to hang on to your best employees than assuring them that their financial health is important to you, even after they are no longer working for you?
Motivating Employees | Tower Grove, MO 401(k) Companies
Many Tower Grove, MO businesses offer higher contributions when their employees achieve particular performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be a successful 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 obtain a tax credit for plan startup costs if they meet three requirements laid out by the IRS:
- You had under 100 staff who were paid a minimum of $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 years prior, 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 a further tax credit for attaching an automatic enrollment feature to a new 401(k) plan or one you already had.
Further Tax Advantages
In addition to the startup tax credit, the IRS offers two added tax benefits for sponsoring a 401(k) program:
- Employer contributions are tax-deductible to to the point that they 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 advantage of tax deferral until distribution.
Correct Capital's financial advisors also offer extensive tax planning services to Tower Grove, MO companies. We'll strive to reduce your tax liability as part of our 401(k) services.
Employee Education
One of the things that sets Correct Capital apart from other 401(k) advisors in Tower Grove, MO is that we offer financial planning as a perk to your participating staff. Through group education meetings, we'll make sure your employees know the ideal investment opportunities for themselves, know how your 401(k) plan functions, and see how it's helping them. We can also use one-on-one meetings to talk over financial portfolio and asset management with individual workers. When you hire a new employee that had a 401(k) plan with their prior employer, we can assist them 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 a variety of different plans through several different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that includes a range of investment options. Employers are able to equal 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, however contributions are made with money you have already paid taxes on. Income obtained in the plan, such as interest, dividends, or capital gains, is tax-free when the employee takes funds out 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 specifically for small businesses who want a cost-efficient way to offer their staff retirement benefits. Similar to a traditional 401(k) plan, you can 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 a worker's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, except that they must include employer contributions that are fully vested when made. In exchange for for required contributions, the IRS does not conduct its yearly nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Tower Grove, MO business and your employee's retirement needs to find the ideal type of 401(k) plan for you.
Other services we offer in Tower Grove, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
The Correct Capital Difference | Tower Grove, MO 401(k) Companies
Correct Capital stands out among Tower Grove, MO 401(k) advisors because we offer the level of individualized attention as smaller financial firms, but pair it with the same wisdom, accomplishment, and partnerships as larger firms. We provide independent and objective counsel, 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 25 years 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 discuss your 401(k) needs today.
