401(k) Companies in University City, MO

401(k) Companies in University City, MO A Great 401(k) Plan Benefits You and Your Employees

401(k) Companies in University City, MO. Setting up a 401(k) plan with trustworthy 401(k) advisors is a great way for small and mid-sized companies in University City, MO to draw and hold onto employees, incentivize great performance, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been introducing companies to trusted 401(k) companies in University City, MO for over two decades. Call us today at 314-930-401(k) or contact us online to discover more about what Correct Capital can do for your University City, MO business and employees.

As of 2020, defined-contribution (DC) plans such as 401(k)s constitute $9.9 trillion of the total $32.3 trillion in retirement plan assets 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 companies in the United States with under 50 employees provide a 401(k) plan as an employee benefit, and more than one-third have no current plans to do so. A further 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 stated that the most common reason for employers to look into 401(k) companies and offer a plan was to encourage their employees to save conscientiously for retirement. In order to do this fruitfully for your valued employees, it is essential to consult a trustworthy, independent retirement planning advisory firm like Correct Capital based in University City, MO.

There are a great deal of advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and stable 401(k) companies to bring you and your employees the retirement solutions that are in your best interests and individual circumstances. Certain plans are more appropriate for certain employers, and our University City, MO 401(k) advisors help recognize the preferred 401(k) company and plan for you and your employees. As an independent advisory firm, there is no limit to which 401(k) companies we can connect you to . From offering investment education, advising individual employees on retirement planning, and helping you navigate how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a crucial aspect of any 401(k) plan.

401(k) Consultants University City, MO | Financial Advisors | Retirement Planners Near University City

Advantages of Offering a 401(k) Plan | University City, MO 401(k) Companies

The benefits of offering retirement planning to employees through 401(k) companies are apparent. Thirty-nine percent of employers who did not offer 401(k) plans gave their reason as being that their business was not bringing in sufficient profit. But there are numerous reasons why setting up a 401(k) plan for your employees could wind up being best for your bottom line. The 401(k) consultants at Correct Capital will put together an extensive guide to the many benefits certain programs will have for you. Among them are:

Attracting and Retaining Talent | University City, MO 401(k) Companies

We're enduring the Great Resignation; a recent survey discovered that 55% of Americans anticipated searching for a new job in 2021 and 2022. Workers are 45% more confident about their retirement when their employer offers a retirement plan. What better way to keep your favorite employees than assuring them that their financial well-being is important to you, even after they've moved on?

Incentivizing Employees | University City, MO 401(k) Companies

Many University City, MO businesses give higher contributions when particular performance goals are met. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to sustain 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 stipulated by the IRS:

  1. You had 100 or fewer employees who collected at least $5,000 in compensation from you the previous year.
  2. You had at least one plan participant who was a non-highly compensated employee.
  3. Your company did not already have a retirement plan covering substantially the same employees during the three years preceding the year for which you are claiming credit.

The tax credit is accessible for up to three years, and there is another tax credit for adding an automatic enrollment feature to a new or existing 401(k) plan.

Additional Tax Advantages

Other than the startup tax credit, the IRS offers two other tax benefits for sponsoring a 401(k) plan:

  1. Employer contributions are tax-deductible to to the point that they do not go over the limits stipulated by Section 404 of the Internal Revenue Code.
  2. Elective deferrals and investment gains are not taxed and posses tax deferral until distribution.

Correct Capital's financial advisors also offer comprehensive tax planning services to University City, MO businesses. We'll work to decrease 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 University City, MO is that we offer financial planning as a benefit to your participating employees. Through group education meetings, we'll ensure your employees know the best investment opportunities for themselves, are aware of how your 401(k) program works, and appreciate how it's serving them. We can also use one-on-one sessions to talk over financial portfolio and asset management with individual staff. When a new member joins your team and they had a 401(k) plan with their prior company, we can assist them with their 401(k) rollover.

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Types of 401(k) Plans | University City, MO 401(k) Companies

The University City, MO 401(k) consultants at Correct Capital can help your companies implement many different plans through many 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 are able to equal their employees' contributions. Taxes are taken out when the savings and gains are withdrawn.
  • Roth 401(k) Plans: Roth plans are analogous traditional plans, except 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 withdraws funds after continuing the account for 5 years and they are 59-½ years old or older.
  • SIMPLE 401(k) Plans: These plans exist specifically 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. However, the employer must make either:
    • A matching contribution of up to 3% of an employee's pay; or
    • A non-elective contribution of 2% of a worker's pay.
  • Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, except that 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.

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 ideal type of 401(k) plan for you.

Other services we offer in University City, MO include:

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The Correct Capital Difference | University City, MO 401(k) Companies

Correct Capital stands out among University City, MO 401(k) advisors because we offer the degree of personalized care as smaller advisory firms, but couple it with the same savvy, professionalism, and connections 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 ethical obligation 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 throughout the United States. Call us at 314-930-401(k) or contact us online to talk over your 401(k) needs today.

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