401(k) Companies in Westwood, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Westwood, MO. Setting up a 401(k) plan with dependable 401(k) advisors is a great way for small and mid-sized companies in Westwood, MO to attract and retain 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 Westwood, MO for over 20 years. Call us today at 314-930-401(k) or contact us online to learn more about how Correct Capital can help your Westwood, MO business and your employees thrive.
As of 2020, defined-contribution (DC) plans such as 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 50% of all employers in the United States with under 50 employees offer a retirement plan as an employee benefit, and more than one-third have no present aim to do so. An additional study found that a 401(k) plan is the only avenue many Americans have for setting money aside for retirement.
The J.P. Morgan survey stated that the most frequent incentive for employers to research 401(k) companies and offer a plan was to encourage their employees to set money aside responsibly for retirement. In order to do this successfully for your prized employees, it is critical to turn to a trusted, independent retirement planning advisory firm like Correct Capital based in Westwood, MO.
There are numerous benefits to using Correct Capital's 401(k) services. Correct Capital partners with many dependable and secure 401(k) companies to put forward for you and your employees the retirement solutions that work for your best interests and unique situation. Certain plans are more apt for certain businesses, and our Westwood, MO 401(k) advisors help recognize 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 connect you to . From offering financial planning education, advising individual employees on retirement planning, and helping 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 facet of any 401(k) program.
Advantages of Offering a 401(k) Plan | Westwood, MO 401(k) Companies
The advantages of offering retirement planning to workers through 401(k) companies are apparent. Thirty-nine percent of employers who did not offer 401(k) plans said that their reason was that their business was not generating sufficient income. But there are countless reasons why implementing a 401(k) plan for your employees could wind up being best for your bottom line. The 401(k) consultants at Correct Capital will compile an all-inclusive guide to the various advantages certain programs will have for you. Among them are:
Attracting and Retaining Talent | Westwood, 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 feel 45% more at-ease about their retirement when their employer offers a 401(k) plan. What better way to hold on to your best employees than letting them know their financial security matters to you, even after they've moved on?
Incentivizing Employees | Westwood, MO 401(k) Companies
Many Westwood, MO companies offer increased contributions when their employees achieve certain performance goals. Incentivizing a 401(k) plan, for instance, offering a Profit-Sharing Contribution Plan, can be an effective way to keep your employees' motivation high and to continue their performance.
Plan Startup Tax Credits | Westwood, MO 401(k) Companies
Small and medium companies can obtain a tax credit for plan startup expenses if they meet three requirements dictated by the IRS:
- You had 100 or fewer workers who received at least $5,000 in compensation from you the previous year.
- You had at least one plan participant who was a non-highly compensated employee.
- Your business did not already have a retirement plan covering substantially the same employees during the three years preceding the year for which you are claiming credit.
The tax credit is obtainable for up to three years, and there is a different tax credit for attaching an automatic enrollment feature to a new 401(k) plan or one you already had.
Additional Tax Advantages
Besides the startup tax credit, the IRS offers two extra tax benefits for having a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not exceed the limits stipulated by Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and benefit from tax deferral until distribution.
One of the features that sets Correct Capital apart from other 401(k) consultants in Westwood, MO is that we offer financial planning as a benefit to plan participants. With group education meetings, we'll make sure your employees know the ideal investment options for themselves, understand how your 401(k) plan functions, and recognize how it's helping them. We can also have one-on-one meetings to discuss financial portfolio and asset management with individual employees. When a new employer joins your team and they had a 401(k) plan with their previous company, we can offer assistance with their 401(k) rollover.
Types of 401(k) Plans | Westwood, MO 401(k) Companies
The Westwood, MO 401(k) advisors at Correct Capital can help your business set up several different plans through several different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that includes a range of investment options. Employers are able to equal what their employees put in. Taxes are taken out when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, except that contributions are made with after-tax dollars. Income obtained 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 exist specifically for small businesses who need a cost-effective way to offer their staff retirement benefits. Similar to a traditional 401(k) plan, you can take money out of an employee's paycheck as their contribution. However, the employer must make either:
- A matching contribution of up to 3% of an employee's pay; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are analogous to regular 401(k)s, except that they must include employer contributions that are fully vested when made. In exchange for 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 Westwood, MO company and your employee's retirement needs to find the ideal type of 401(k) plan for you.
Other services we offer in Westwood, MO include:
- Financial Advisor
- Asset Management
- Retirement Consultant
- Financial Portfolio Management
- 401(k) Rollover
- Financial Advice
- Retirement Planning Services
The Correct Capital Difference | Westwood, MO 401(k) Companies
Correct Capital is unique among Westwood, MO 401(k) advisors because we offer the level of personalized attention as smaller financial firms, but pair 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 connect employers to 401(k) companies for more than two decades and presently represent over $230 million in total plan assets across the United States. Call us at 314-930-401(k) or contact us online to go over your 401(k) needs today.