401(k) Companies in Wentzville, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Wentzville, MO. Initiating a 401(k) plan with trustworthy 401(k) advisors is an excellent way for small and mid-sized businesses in Wentzville, MO to appeal to and hold onto employees, incentivize great work, and obtain those much-needed tax breaks. Correct Capital Wealth Management has been connecting companies with trustworthy 401(k) companies in Wentzville, MO for more than 20 years. Call us today at 314-930-401(k) or contact us online to learn more about what Correct Capital can do for your Wentzville, MO business and employees.
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 50% of all companies in the United States with under 50 employees provide a retirement plan as an employee benefit, and over a third have no current aim to do so. A further 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 common motivation for employers to look into 401(k) companies and provide a plan was to incentivize their employees to save conscientiously for retirement. In order to do this successfully for your prized employees, it is critical to reach out to a trustworthy, independent retirement planning advisory firm like Correct Capital based in Wentzville, MO.
There are various advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and stable 401(k) companies to offer you and your employees the retirement solutions that serve your best interests and individual situation. Specific plans are more appropriate for certain employers, and our Wentzville, MO 401(k) advisors help locate the preferred 401(k) company and plan for you and your employees. As independent advisors, there is no restraint to which 401(k) companies we can work with . From offering financial planning education, counseling 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 a vital facet of any 401(k) program.
Advantages of Offering a 401(k) Plan | Wentzville, MO 401(k) Companies
The benefits 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 enough earnings. But there are countless reasons why initiating a 401(k) plan for your employees may be best for your bottom line in the end. The 401(k) advisors at Correct Capital will compile an extensive guide to the many benefits certain plans will have for you. Among them are:
Recruiting and Retaining Talent | Wentzville, MO 401(k) Companies
We're enduring the Great Resignation; a recent survey discovered that 55% of Americans thought they would look for a different job in 2021 and 2022. Workers are 45% more assured about their retirement when their employer provides a defined contribution plan. What better way to retain your best employees than letting them know their financial health matters to you, even after they've moved on?
Motivating Employees | Wentzville, MO 401(k) Companies
Many Wentzville, MO companies offer greater contributions when certain performance goals are met. 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 sustain their production.
Plan Startup Tax Credits | Wentzville, MO 401(k) Companies
Small and medium companies are able to obtain a tax credit for plan startup costs if they meet three requirements laid out by the IRS:
- You had under 100 workers who were paid at least $5,000 in compensation from you the previous 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 covered substantially the same employees.
The tax credit is accessible for up to three years, and there is a further tax credit for attaching an automatic enrollment feature to a new or existing 401(k) plan.
Further Tax Benefits
In addition to the startup tax credit, the IRS offers two further tax benefits for having a 401(k) program:
- 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 things that sets Correct Capital apart from other 401(k) consultants in Wentzville, MO is that we offer financial planning as a perk to your participating staff. With group education meetings, we'll ensure your employees know the best investment options for themselves, understand how your 401(k) plan works, and see how it's benefiting them. We can also have one-on-one meetings to discuss financial portfolio and asset management with individual employees. 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 | Wentzville, MO 401(k) Companies
The Wentzville, MO 401(k) consultants at Correct Capital can help your companies implement a variety of 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 numerous investment options. Employers can equal what their employees put in. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, however contributions are made with money you have already paid taxes on. Gains earned in the plan, such as interest, dividends, or capital gains, is tax-free when the employee withdraws funds 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 need a cost-efficient way to offer their workers a retirement plan. Like a traditional 401(k) plan, you can withhold money from an employee's paycheck as their contribution. But, the employer must make either:
- A matching contribution of no more than 3% of a staff members earnings; or
- A non-elective contribution of 2% of an employee's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to to regular 401(k)s, but the employer is required to make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not carry out its yearly nondiscrimination tests.
When we first meet with you, we'll get to know your Wentzville, MO business and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Wentzville, MO include:
- 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
- Rollover 401(k)
The Correct Capital Difference | Wentzville, MO 401(k) Companies
Correct Capital stands out among Wentzville, MO 401(k) advisors because we provide the level of individualized care as smaller financial firms, but pair it with the same wisdom, experience, and partnerships as larger firms. We provide independent and objective direction, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and moral duty to do so. Our retirement consultants have been trusted to connect companies to 401(k) companies for more than two decades and currently represent over $230 million in total plan assets nationwide. Call us at 314-930-401(k) or contact us online to discuss your 401(k) needs today.