401(k) Companies in University City, MO
401(k) Companies in University City, MO. Initiating a 401(k) plan with trustworthy 401(k) advisors is a great way for small and mid-sized businesses in University City, MO to attract and retain employees, encourage great work, and get those much-needed tax breaks. Correct Capital Wealth Management has been connecting businesses with secure 401(k) companies in University City, MO for over two decades. Call us today at 877-930-4015 or contact us online to learn more about what Correct Capital can do for your University City, 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, as reported by the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than half of all businesses in the United States with under 50 employees offer a 401(k) plan to their employees, and over 33% 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 frequent incentive for employers to inquire about 401(k) companies and offer a plan was to incentivize their employees to put money aside responsibly 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 University City, MO.
There are numerous benefits to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and secure 401(k) companies to offer you and your employees the retirement solutions that work for your best interests and specific circumstances. Certain plans are more apt for certain employers, and our University City, MO 401(k) advisors help recognize the best 401(k) company and plan for you and your employees. As independent retirement consultants, there is no restraint to which 401(k) companies we can work with . From offering investment education, guiding individual employees on retirement planning, and assisting you understand how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an indispensable aspect of any 401(k) plan.
Benefits of Offering a 401(k) Plan | University City, MO 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 stated that their company was not bringing in sufficient earnings. But there are numerous reasons why initiating a 401(k) plan for your employees might end up being best for your bottom line. The 401(k) advisors at Correct Capital will compile an all-inclusive guide to the many advantages certain plans will have for you. Among them are:
Attracting and Retaining Talent | University City, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey discovered that 55% of Americans expected to search for a different job in 2021 and 2022. Workers are 45% more assured about their retirement when their employer provides a retirement plan. What better way to keep your favorite employees than assuring them that their financial security matters to you, even after they've left the workforce?
Motivating Employees | University City, MO 401(k) Companies
Many University City, MO employers give higher contributions when certain performance goals are met. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an effective way to keep your employees' motivation high and to sustain their performance.
Plan Startup Tax Credits | University City, MO 401(k) Companies
Small and medium companies can get a tax credit for plan startup costs if they meet three requirements stipulated by the IRS:
- You had less than 100 employees who were paid at least $5,000 in compensation from you the previous year.
- You had a minimum of 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 covered substantially the same employees.
The tax credit is obtainable for up to 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.
Additional 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 surpass the limits set out in Section 404 of the Internal Revenue Code.
- 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 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 features that makes Correct Capital different from other 401(k) consultants in University City, MO is that we offer financial planning as a perk to your participating staff. With group education meetings, we'll make sure your employees understand the best investment opportunities for themselves, are aware of how your 401(k) plan works, and recognize how it's serving them. We can also have one-on-one meetings to go through financial portfolio and asset management with individual workers. 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.
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 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 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 similar to traditional plans, other than the fact that 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 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-effective way to offer their workers a retirement plan. 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 a worker's earnings; or
- A non-elective contribution of 2% of a worker'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 exchange for for required contributions, the IRS does not perform its yearly nondiscrimination tests.
When we first meet with you, we'll get to know your University City, MO company and your employee's retirement needs to offer the best 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
The Correct Capital Difference | University City, MO 401(k) Companies
Correct Capital is distinctive among University City, MO 401(k) advisors because we provide the level of personalized care as smaller financial firms, but couple it with the same wisdom, experience, and partnerships as larger firms. We offer independent and objective counsel, always geared toward doing what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to introduce businesses to 401(k) companies for over 25 years and currently represent over $230 million in total plan assets across the United States. Call us at 877-930-4015 or contact us online to talk over your 401(k) needs today.
