401(k) Companies in Webster Groves, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Webster Groves, MO. Establishing a 401(k) plan with dependable 401(k) advisors is a great way for medium and small businesses in Webster Groves, MO to appeal to and retain employees, incentivize great production, and get those much-needed tax breaks. Correct Capital Wealth Management has been introducing companies to secure 401(k) companies in Webster Groves, MO for over two decades. Call us today at 314-930-401(k) or contact us online to discover more about how Correct Capital can help your Webster Groves, MO business and your employees succeed.
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, according to data from the Investment Company Institute. Still, according to a 2020 survey by J.P. Morgan, less than half of all employers in the United States with under 50 employees provide a retirement plan as an employee benefit, and more than a third have no present plans to do so. A different study found that a 401(k) plan is the only instrument many Americans have for putting money aside for retirement.
The J.P. Morgan survey stated that the most common motivation for employers to inquire about 401(k) companies and provide a plan was to incentivize their employees to put money aside responsibly for retirement. In order to do this successfully for your valued employees, it is crucial to turn to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Webster Groves, MO.
There are a great deal of advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many dependable and safe 401(k) companies to put forward for you and your employees the retirement solutions that are in your best interests and unique situation. Specific plans work better for certain businesses, and our Webster Groves, MO 401(k) advisors help pick out the preferred 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 maneuver how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are an indispensable aspect of any 401(k) program.
Benefits of Offering a 401(k) Plan | Webster Groves, MO 401(k) Companies
The advantages of offering retirement planning to employees through 401(k) companies are clear. Almost 40% of employers who did not offer 401(k) plans stated that their company was not bringing in sufficient income. But there are countless reasons why implementing a 401(k) plan for your employees might be best for your bottom line in the end. The 401(k) consultants at Correct Capital will compile a comprehensive guide to the various advantages certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Webster Groves, MO 401(k) Companies
We're going through the Great Resignation; a recent survey found that 55% of Americans anticipated looking for a new 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 best employees than letting them know their financial health is important to you, even after they've left the workforce?
Motivating Employees | Webster Groves, MO 401(k) Companies
Many Webster Groves, MO businesses give increased contributions when their employees accomplish specific performance goals. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to continue their performance.
Plan Startup Tax Credits | Webster Groves, MO 401(k) Companies
Small and medium companies are able to collect a tax credit for plan startup expenses if they meet three requirements dictated by the IRS:
- You had less than 100 staff who received 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.
- 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 another tax credit for attaching an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Advantages
Apart from the startup tax credit, the IRS offers two further tax benefits for having 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 have the advantage of tax deferral until distribution.
One of the aspects that makes Correct Capital different from other 401(k) advisors in Webster Groves, MO is that we offer financial planning as a service to your participating employees. With group education gatherings, we'll ensure your employees understand the best investment opportunities for themselves, understand how your 401(k) program works, and understand how it's serving them. We can also use one-on-one sessions to talk over financial portfolio and asset management with individual employees. When you hire a new employee that had a 401(k) plan with their prior 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) advisors at Correct Capital can help your companies set up several different plans through many different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored program that includes numerous investment options. Employers can match what their employees put in. Taxes are paid when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, with the exception contributions are made with money you have already paid taxes on. Gains obtained 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 are specially for small businesses who want a cost-effective way to offer their staff a retirement plan. Like 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 worker's earnings; or
- A non-elective contribution of 2% of an employee's earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, but they must include employer contributions that are fully vested when made. In return for required contributions, the IRS does not carry out its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Webster Groves, MO company and your employee's retirement needs to find the ideal type of 401(k) plan for you.
Other services we offer in Webster Groves, MO include:
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
- Social Security Consultants Near Me
- Retirement Calculator
- Retirement Planning
The Correct Capital Difference | Webster Groves, MO 401(k) Companies
Correct Capital is distinctive among Webster Groves, MO 401(k) advisors because we offer the level of personalized attention as smaller advisory firms, but combine it with the same knowledge, professionalism, and partnerships as larger firms. We offer independent and objective counsel, always with your best interest at heart; as an Accredited Investment Fiduciary®, it's our legal and moral responsibility to do so. Our retirement consultants have been trusted to introduce businesses to 401(k) companies for over two decades and presently represent over $230 million in total plan assets nationwide. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.