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 trusted 401(k) advisors is an excellent way for small and mid-sized companies in Webster Groves, MO to draw and hold onto employees, incentivize great performance, and get those much-needed tax breaks. Correct Capital Wealth Management has been introducing employers to trustworthy 401(k) companies in Webster Groves, MO for over 20 years. 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 prosper.
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 capital 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 less than 50 employees provide a retirement plan to their employees, and over 33% have no current 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 motive for employers to look into 401(k) companies and offer a plan was to incentivize their employees to put money aside conscientiously for retirement. In order to do this fruitfully for your best employees, it is critical to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Webster Groves, MO.
There are a great deal of benefits to utilizing Correct Capital's 401(k) services. Correct Capital partners with many trusted and stable 401(k) companies to offer you and your employees the retirement solutions that serve your needs and unique situation. Certain plans are more apt for certain employers, and our Webster Groves, MO 401(k) advisors help determine 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 work with . From offering financial planning education, advising individual employees on retirement planning, and assisting you understand how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a vital part 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 staff through 401(k) companies are apparent. Almost 40% of employers who did not offer 401(k) plans said that their company was not bringing in sufficient profit. But there are countless reasons why implementing a 401(k) plan for your employees could end up being best for your bottom line. The 401(k) advisors at Correct Capital will compile an extensive guide to the myriad benefits certain programs will have for you. Among them are:
Recruiting 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 anticipated looking for a different job in 2021 and 2022. Workers are 45% more assured about their retirement when their employer offers a defined contribution plan. What better way to keep your hardest working employees than letting them know you care about their financial security, even after they've moved on?
Motivating Employees | Webster Groves, MO 401(k) Companies
Many Webster Groves, MO companies give greater contributions when their employees meet specific performance goals. 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 | Webster Groves, MO 401(k) Companies
Small and medium companies are able to collect a tax credit for plan startup costs if they meet three requirements stipulated 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 at least 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 obtainable for a maximum of three years, and there is a further tax credit for adding an automatic enrollment feature to a new 401(k) plan or one you already had.
Further Tax Benefits
Apart from the startup tax credit, the IRS offers two other tax benefits for having a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not go over 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.
One of the aspects that sets Correct Capital apart from other 401(k) consultants in Webster Groves, MO is that we offer financial planning as a benefit to your participating staff. With group education gatherings, we'll ensure your employees know the best investment options for themselves, know how your 401(k) program works, and appreciate how it's serving them. We can also use one-on-one meetings to talk over financial portfolio and asset management with individual workers. When you hire a new employee that had a 401(k) plan with their prior employer, we can offer assistance 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 several different plans through several different 401(k) companies. The most common plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that offers numerous investment options. Employers may match their employees' contributions. Taxes are taken out when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, other than the fact that contributions are made with money you have already paid taxes on. Income made in the plan, such as interest, dividends, or capital gains, is tax-free when the employee takes money out after preserving 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-efficient way to offer their workers retirement benefits. Similar to a traditional 401(k) plan, you may take money out of an employee's paycheck as their contribution. However, the employer must make either:
- An equal contribution of up to 3% of a worker's pay; or
- A non-elective contribution of 2% of a worker's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, other than the fact that they must include employer contributions that are fully vested when made. In consideration of for required contributions, the IRS does not conduct its annual nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Webster Groves, MO business and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in Webster Groves, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Webster Groves, MO 401(k) Companies
Correct Capital is unique among Webster Groves, MO 401(k) advisors because we provide the level of individualized attention as smaller financial firms, but couple it with the same knowledge, accomplishment, and partnerships as larger firms. We offer independent and objective direction, always geared toward doing what's in your best interest; as an Accredited Investment Fiduciary®, it's our legal and ethical 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 nationwide. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.