401(k) Companies in Webster Groves, MO
401(k) Companies in Webster Groves, MO. Setting up a 401(k) plan with trustworthy 401(k) advisors is a great way for medium and small companies in Webster Groves, MO to appeal to and hold onto employees, encourage great production, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been connecting employers with secure 401(k) companies in Webster Groves, MO for more than two decades. Call us today at 877-930-4015 or contact us online to find out more about how Correct Capital can help your Webster Groves, MO business and your employees thrive.
As of 2020, defined-contribution (DC) plans such as 401(k)s comprise $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 50% of all companies in the United States with less than 50 employees offer a 401(k) plan to their employees, and over one-third have no current intent to do so. A different study found that a 401(k) plan is the only instrument many Americans have for setting money aside for retirement.
The J.P. Morgan survey reported that the most common reason for employers to inquire about 401(k) companies and offer a plan was to encourage their employees to set money aside responsibly for retirement. In order to do this effectively for your best employees, it is critical to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Webster Groves, MO.
There are countless benefits to using Correct Capital's 401(k) services. Correct Capital partners with many trusted and stable 401(k) companies to put forward for you and your employees the retirement solutions that serve your needs and individual situation. Specific plans are more apt for certain businesses, and our Webster Groves, MO 401(k) advisors help locate the preferred 401(k) company and plan for you and your employees. As an independent retirement planning firm, there is no restriction to which 401(k) companies we can connect you to . From offering investment education, guiding individual employees on retirement planning, and helping you navigate how to best implement a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are an invaluable aspect of any 401(k) plan.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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Advantages of Offering a 401(k) Plan | Webster Groves, MO 401(k) Companies
The benefits of providing retirement planning to employees through 401(k) companies are obvious. Thirty-nine percent of employers who did not offer 401(k) plans said that their company was not bringing in enough revenue. But there are many reasons why initiating a 401(k) plan for your employees could be best for your bottom line down the road. The 401(k) consultants at Correct Capital will compile an extensive guide to the many benefits certain programs will have for you. Among them are:
Attracting and Retaining Talent | Webster Groves, MO 401(k) Companies
We're in the middle of the Great Resignation; a recent survey stated that 55% of Americans thought they would look for a new job in 2021 and 2022. Workers feel 45% more confident about their retirement when their employer offers a retirement plan. What better way to keep your hardest working employees than assuring them that their financial security matters to you, even after they've left the workforce?
Motivating Employees | Webster Groves, MO 401(k) Companies
Many Webster Groves, MO businesses offer increased contributions when their employees accomplish particular performance goals. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be a successful way to keep your employees' motivation high and to keep up their production.
Plan Startup Tax Credits | Webster Groves, MO 401(k) Companies
Small and medium companies are able to receive a tax credit for plan startup expenses if they satisfy three requirements stipulated by the IRS:
- You had 100 or fewer workers who were paid a minimum of $5,000 in compensation from you the year prior.
- You had at least 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 attaching an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Benefits
Apart from 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 go over the limits dictated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
Correct Capital's financial advisors also offer extensive tax planning services to Webster Groves, MO residents and employers. We'll strive to lower your tax liability as part of our 401(k) services.
Employee Education
One of the features that sets Correct Capital apart from other 401(k) advisors in Webster Groves, MO is that we offer financial planning as a perk to your participating staff. With group education gatherings, we'll ensure your employees know the ideal investment options for themselves, know how your 401(k) program works, and see how it's serving them. We can also use one-on-one meetings to talk over financial portfolio and asset management with individual staff. When you hire a new employee that had a 401(k) plan with their previous employer, we can assist them with their 401(k) rollover.
Types of 401(k) Plans | Webster Groves, MO 401(k) Companies
The Webster Groves, MO 401(k) consultants at Correct Capital can help your business set up a variety of 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 can match what their employees put in. Taxes are taken out when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, but 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 employee withdraws money after maintaining the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans are in place specially for small businesses who want a cost-effective way to offer their staff retirement benefits. Similar to a traditional 401(k) plan, you may withhold money from an employee's paycheck as their contribution. However, the employer must make either:
- A matching contribution of no more than 3% of a staff members pay; or
- A non-elective contribution of 2% of an employee's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, other than the fact that the employer is required to make 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 Webster Groves, MO business and your employee's retirement needs to offer the ideal type of 401(k) plan for you.
Other services we offer in Webster Groves, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | Webster Groves, MO 401(k) Companies
Correct Capital is distinctive among Webster Groves, MO 401(k) advisors because we provide the degree of individualized care as smaller advisory firms, but combine it with the same savvy, experience, and connections as larger firms. We offer independent and objective guidance, always geared toward doing what's best for you; as an Accredited Investment Fiduciary®, it's our legal and ethical obligation to do so. Our retirement consultants have been trusted to connect businesses to 401(k) companies for over two decades and currently represent over $230 million in total plan assets nationwide. Call us at 877-930-4015 or contact us online to go over your 401(k) needs today.
