401(k) Companies in University City, MO
401(k) Companies in University City, MO. Initiating a 401(k) plan with trusted 401(k) advisors is a great way for small and mid-sized companies in University City, MO to attract and retain employees, incentivize great work, and receive those much-needed tax breaks. Correct Capital Wealth Management has been introducing employers to trustworthy 401(k) companies in University City, MO for over two decades. Call us today at 877-930-4015 or contact us online to find out more about how Correct Capital can help your University City, MO 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, as reported by the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than 50% of all businesses in the United States with under 50 employees provide a retirement plan as an employee benefit, and more than a third have no present aim to do so. An additional study found that a 401(k) plan is the only avenue many Americans have for putting money aside for retirement.
The J.P. Morgan survey stated that the most common motivation for employers to look into 401(k) companies and offer a plan was to encourage their employees to set money aside responsibly for retirement. In order to do this fruitfully for your best employees, it is critical to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in University City, MO.
There are numerous benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and safe 401(k) companies to put forward for you and your employees the retirement solutions that work for your best interests and unique circumstances. Certain plans are more appropriate for certain companies, and our University City, MO 401(k) advisors help pick out the preferred 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, advising individual employees on retirement planning, and helping you maneuver how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an invaluable part of any 401(k) plan.
Advantages of Offering a 401(k) Plan | University City, MO 401(k) Companies
The benefits of providing retirement planning to employees 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 company was not generating enough profit. But there are countless reasons why setting up a 401(k) plan for your employees might be best for your bottom line down the road. The 401(k) consultants at Correct Capital will put together an all-inclusive guide to the myriad benefits certain programs will have for you. Among them are:
Recruiting and Retaining Talent | University City, MO 401(k) Companies
We're going through the Great Resignation; a recent survey found that 55% of Americans anticipated looking for a different job in 2021 and 2022. Workers feel 45% more at-ease about their retirement when their employer has a 401(k) plan. What better way to hang on to your best employees than letting them know their financial well-being matters to you, even after they've left the workforce?
Motivating Employees | University City, MO 401(k) Companies
Many University City, MO employers give greater contributions when their employees reqach particular performance goals. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be a great way to keep your employees' motivation high and to continue their production.
Plan Startup Tax Credits | University City, MO 401(k) Companies
Small and medium companies can obtain a tax credit for plan startup expenses if they meet three requirements dictated by the IRS:
- You had 100 or fewer employees who collected a minimum of $5,000 in compensation from you the preceding year.
- You had at least one plan participant who was a non-highly compensated employee.
- Your company 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 a maximum of three years, and there is a different tax credit for attaching 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 other tax benefits for sponsoring a 401(k) program:
- Employer contributions are tax-deductible to the extent that the contributions do not surpass the limits dictated by 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 extensive tax planning services to University City, MO residents and employers. We'll work to lower your tax liability as part of our 401(k) services.
Employee Education
One of the things that makes Correct Capital different from other 401(k) advisors in University City, MO is that we offer financial planning as a perk to plan participants. Through group education meetings, we'll make sure your employees know the ideal investment options for themselves, know how your 401(k) plan functions, and recognize 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 a new employer joins your team and they had a 401(k) plan with their previous company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | University City, MO 401(k) Companies
The University City, MO 401(k) advisors at Correct Capital can help your business set up several 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 includes a wide array of investment options. Employers are able to match what their employees put in. Taxes are taken out when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, with the exception contributions are made with money you have already paid taxes on. Income made 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 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans exist specially for small businesses looking for a cost-effective 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 an employee's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, except that the employer is required to make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its annual nondiscrimination tests.
In our first meeting, we'll get to know your University City, MO business and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in University City, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
The Correct Capital Difference | University City, MO 401(k) Companies
Correct Capital is unique among University City, MO 401(k) advisors because we offer the level of personalized care as smaller advisory firms, but pair it with the same knowledge, professionalism, and connections as larger firms. We offer independent and objective guidance, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to introduce 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 877-930-4015 or contact us online to discuss your 401(k) needs today.
