401(k) Companies in Warson Woods, MO
401(k) Companies in Warson Woods, MO. Setting up a 401(k) plan with trustworthy 401(k) advisors is an excellent way for small and mid-sized companies in Warson Woods, MO to draw and retain employees, incentivize great work, and get those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with dependable 401(k) companies in Warson Woods, MO for over 20 years. Call us today at 314-930-401(k) or contact us online to find out more about what Correct Capital can do for your Warson Woods, MO business and employees.
As of 2020, defined-contribution (DC) plans such as 401(k)s made up $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 50% 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 intent 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 motivation for employers to inquire about 401(k) companies and offer a plan was to encourage their employees to save conscientiously for retirement. In order to do this effectively for your valued employees, it is critical to consult a trusted, independent retirement planning advisory firm like Correct Capital based in Warson Woods, MO.
There are countless benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and secure 401(k) companies to offer you and your employees the retirement solutions that work for your needs and specific circumstances. Specific plans work better for certain companies, and our Warson Woods, MO 401(k) advisors help determine the best 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 work with . From offering financial planning education, guiding 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 aspect of any 401(k) plan.
Benefits of Offering a 401(k) Plan | Warson Woods, MO 401(k) Companies
The advantages of offering retirement planning to workers through 401(k) companies are evident. Thirty-nine percent of employers who did not offer 401(k) plans gave their reason as being that their company was not generating sufficient income. But there are a lot of reasons why initiating a 401(k) plan for your employees may be best for your bottom line in the end. The 401(k) consultants at Correct Capital will put together an all-inclusive guide to the many advantages certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Warson Woods, MO 401(k) Companies
We're living through the Great Resignation; a recent survey found that 55% of Americans anticipated searching for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer provides a defined contribution plan. What better way to retain your favorite employees than assuring them that you care about their financial health, even after they are no longer working for you?
Motivating Employees | Warson Woods, MO 401(k) Companies
Many Warson Woods, MO businesses give greater contributions when specific performance goals are met. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an effective way to keep your employees' motivation high and to sustain their production.
Plan Startup Tax Credits | Warson Woods, MO 401(k) Companies
Small and medium companies can obtain a tax credit for plan startup costs if they satisfy three requirements stipulated 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.
- 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 up to three years, and there is another tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.
Additional Tax Benefits
In addition to the startup tax credit, the IRS offers two additional tax benefits for sponsoring a 401(k) program:
- Employer contributions are tax-deductible to to the point that they 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 advantage of tax deferral until distribution.
Correct Capital's financial advisors also offer all-inclusive tax planning services to Warson Woods, MO businesses. We'll work to reduce your tax liability as part of our 401(k) services.
Employee Education
One of the facets that sets Correct Capital apart from other 401(k) advisors in Warson Woods, MO is that we offer financial planning as a service to plan participants. Through group education meetings, we'll make sure your employees know the best investment options for themselves, know how your 401(k) program functions, and appreciate how it's benefiting them. We can also have one-on-one sessions to discuss financial portfolio and asset management with individual staff. When you hire a new employee that had a 401(k) plan with their old company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Warson Woods, MO 401(k) Companies
The Warson Woods, MO 401(k) advisors at Correct Capital can help your business set up many different plans through a variety of different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that offers a wide array of investment options. Employers can equal what their employees put in. Taxes are deducted when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, however 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 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 looking for a cost-efficient way to offer their workers retirement benefits. Similar to a traditional 401(k) plan, you can take money out of an employee's paycheck as their contribution. But, the employer must make either:
- An equal contribution of no more than 3% of a staff members 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, however they must include employer contributions that are fully vested when made. In exchange for for required contributions, the IRS does not carry out its yearly nondiscrimination tests.
In our initial meeting, we'll gain an understanding of your Warson Woods, MO business and your employee's retirement needs to identify the ideal type of 401(k) plan for you.
Other services we offer in Warson Woods, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Warson Woods, MO 401(k) Companies
Correct Capital stands out among Warson Woods, MO 401(k) advisors because we provide the level of individualized care as smaller financial firms, but pair it with the same wisdom, professionalism, and partnerships as larger firms. We offer independent and objective direction, always intended to do 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 businesses to 401(k) companies for more than 25 years and at present we represent over $230 million in total plan assets across the United States. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.
