401(k) Companies in Warson Woods, MO
401(k) Companies in Warson Woods, MO. Setting up a 401(k) plan with trusted 401(k) advisors is an excellent way for medium and small businesses in Warson Woods, MO to appeal to and retain employees, incentivize great performance, and receive those much-desired tax breaks. Correct Capital Wealth Management has been introducing businesses to trusted 401(k) companies in Warson Woods, MO for more than 20 years. Call us today at 877-930-4015 or contact us online to discover more about how Correct Capital can help your Warson Woods, MO business and your employees flourish.
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 half of all companies in the United States with under 50 employees provide a 401(k) plan to their employees, and more than 33% have no present plans to do so. Another study found that a 401(k) plan is the only avenue many Americans have for saving for retirement.
The J.P. Morgan survey found that the most common motivation for employers to inquire about 401(k) companies and provide 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 important to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Warson Woods, MO.
There are numerous benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and stable 401(k) companies to bring you and your employees the retirement solutions that are in your best interests and unique circumstances. Specific plans work better for certain companies, and our Warson Woods, MO 401(k) advisors help locate the best 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, guiding individual employees on retirement planning, and helping you maneuver how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a crucial part of any 401(k) plan.
Benefits of Offering a 401(k) Plan | Warson Woods, MO 401(k) Companies
The benefits of offering retirement planning to staff through 401(k) companies are clear. Almost 40% of employers who did not offer 401(k) plans gave their reason as being that their company was not generating enough earnings. But there are numerous reasons why initiating a 401(k) plan for your employees could be best for your bottom line down the road. The 401(k) advisors at Correct Capital will put together an all-inclusive guide to the various advantages certain plans will have for you. Among them are:
Attracting and Retaining Talent | Warson Woods, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey discovered that 55% of Americans expected to look for a different job in 2021 and 2022. Workers are 45% more at-ease about their retirement when their employer has a 401(k) plan. What better way to hold on to your favorite employees than assuring them that their financial health matters to you, even after they've moved on?
Motivating Employees | Warson Woods, MO 401(k) Companies
Many Warson Woods, MO businesses offer 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 best employees motivated to maintain 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 fulfill three requirements dictated by the IRS:
- You had 100 or fewer employees who were paid a minimum of $5,000 in compensation from you the previous year.
- You had a minimum of 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 available for up to three years, and there is a different tax credit for adding an automatic enrollment feature to a new or extant 401(k) plan.
Additional Tax Advantages
In addition to the startup tax credit, the IRS offers two added tax benefits for sponsoring a 401(k) plan:
- Employer contributions are tax-deductible to to the point that they do not exceed the limits stipulated 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 all-inclusive tax planning services to Warson Woods, MO companies. We'll strive to reduce 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) advisors in Warson Woods, MO is that we offer financial planning as a perk to plan participants. With group education gatherings, we'll make sure your employees recognize the best investment options for themselves, understand how your 401(k) plan works, and understand how it's benefiting them. We can also use one-on-one sessions 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 help them with their 401(k) rollover.
Types of 401(k) Plans | Warson Woods, MO 401(k) Companies
The Warson Woods, MO 401(k) consultants at Correct Capital can help your companies implement a variety of 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 numerous investment options. Employers are able to match their employees' contributions. Taxes are paid when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, except that 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 individual withdraws money 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. Like a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- An equal contribution of up to 3% of a worker's earnings; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, with the exception they must include employer contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its annual nondiscrimination tests.
When we first meet with you, 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:
The Correct Capital Difference | Warson Woods, MO 401(k) Companies
Correct Capital stands out among Warson Woods, MO 401(k) advisors because we offer the level of individualized care as smaller advisory firms, but couple it with the same wisdom, professionalism, and connections as larger firms. We offer independent and objective advice, 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 businesses to 401(k) companies for more than 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 go over your 401(k) needs today.
