401(k) Companies in Wentzville, MO A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Wentzville, MO. Establishing a 401(k) plan with dependable 401(k) advisors is a great way for small and mid-sized companies in Wentzville, MO to appeal to and hold onto employees, encourage great performance, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting employers with trustworthy 401(k) companies in Wentzville, MO for over two decades. Call us today at 877-930-4015 or contact us online to learn more about how Correct Capital can help your Wentzville, MO business and your employees succeed.
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 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 half of all businesses in the United States with less than 50 employees offer a retirement plan as an employee benefit, and over 33% have no current intentions to do so. A different 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 stated that the most common incentive for employers to look into 401(k) companies and provide a plan was to encourage their employees to set money aside conscientiously for retirement. In order to do this effectively for your prized employees, it is crucial to consult a trusted, independent retirement planning advisory firm like Correct Capital based in Wentzville, MO.
There are countless advantages to utilizing Correct Capital's 401(k) services. Correct Capital partners with many reliable and secure 401(k) companies to bring you and your employees the retirement solutions that serve your best interests and individual situation. Specific plans are more apt for certain businesses, and our Wentzville, MO 401(k) advisors help locate 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 investment education, guiding individual employees on retirement planning, and assisting you maneuver how to best execute a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are a crucial facet of any 401(k) program.
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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 | Wentzville, MO 401(k) Companies
The advantages of offering retirement planning to staff through 401(k) companies are obvious. Almost 40% of employers who did not offer 401(k) plans stated that their business was not generating enough revenue. But there are numerous reasons why setting up a 401(k) plan for your employees could end up being best for your bottom line. The 401(k) consultants at Correct Capital will put together an all-inclusive 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 expected to look for a different job in 2021 and 2022. Workers are 45% more assured about their retirement when their employer has a defined contribution plan. What better way to hold on to your favorite employees than assuring them that their financial security matters to you, even after they've moved on?
Motivating Employees | Wentzville, MO 401(k) Companies
Many Wentzville, MO companies offer greater contributions when their employees reqach particular performance goals. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an excellent way to keep your employees' motivation high and to keep up their performance.
Plan Startup Tax Credits | Wentzville, MO 401(k) Companies
Small and medium companies can collect a tax credit for plan startup expenses if they meet three requirements stipulated by the IRS:
- You had 100 or fewer staff who collected a minimum of $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 obtainable for a maximum of three years, and there is another tax credit for adding an automatic enrollment feature to a new or extant 401(k) plan.
Further Tax Benefits
Other than the startup tax credit, the IRS offers two extra tax benefits for implementing 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.
Correct Capital's financial advisors also offer comprehensive tax planning services to Wentzville, MO businesses. We'll work to lower your tax liability as part of our 401(k) services.
Employee Education
One of the facets that sets Correct Capital apart from other 401(k) advisors in Wentzville, MO is that we offer financial planning as a service to plan participants. Through group education meetings, we'll make sure your employees understand the ideal investment options for themselves, know how your 401(k) program functions, and see how it's helping them. We can also use one-on-one meetings 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 | Wentzville, MO 401(k) Companies
The Wentzville, MO 401(k) consultants at Correct Capital can help your companies initiate many 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 offers numerous investment options. Employers can match their employees' contributions. Taxes are deducted when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, except 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 withdraws money after maintaining 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 who want a cost-efficient way to offer their employees retirement benefits. Like a traditional 401(k) plan, you can take money out of an employee's paycheck as their contribution. However, the employer must make either:
- An equal contribution of no more than 3% of an employee's pay; or
- A non-elective contribution of 2% of an employee's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same 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 perform its yearly nondiscrimination tests.
In our initial meeting, we'll gain an understanding of your Wentzville, MO business and your employee's retirement needs to identify the best type of 401(k) plan for you.
Other services we offer in Wentzville, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
The Correct Capital Difference | Wentzville, MO 401(k) Companies
Correct Capital is unique among Wentzville, MO 401(k) advisors because we offer the level of individualized attention as smaller advisory firms, but couple it with the same knowledge, professionalism, and partnerships as larger firms. We offer independent and objective advice, 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 employers to 401(k) companies for over two decades and at present we represent over $230 million in total plan assets throughout the United States. Call us at 877-930-4015 or contact us online to talk over your 401(k) needs today.