401(k) Companies in Westwood, MO
A Great 401(k) Plan Benefits You and Your Employees
401(k) Companies in Westwood, MO. Establishing a 401(k) plan with trusted 401(k) advisors is a great way for medium and small companies in Westwood, MO to appeal to and retain employees, incentivize great production, and receive those much-desired tax breaks. Correct Capital Wealth Management has been connecting businesses with dependable 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 what Correct Capital can do for your Westwood, MO business and employees.
As of 2020, defined-contribution (DC) plans such as 401(k)s made up $9.9 trillion of the total $32.3 trillion in retirement plan funds 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 businesses in the United States with less than 50 employees offer a 401(k) plan as an employee benefit, and more than one-third have no current intentions to do so. An additional 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 frequent incentive for employers to explore 401(k) companies and offer a plan was to encourage their employees to set money aside conscientiously for retirement. In order to do this effectively for your valued employees, it is essential to consult a trusted, independent retirement planning advisory firm like Correct Capital based in Westwood, MO.
There are a great deal of benefits to using Correct Capital's 401(k) services. Correct Capital partners with many reliable and safe 401(k) companies to put forward for you and your employees the retirement solutions that are in your needs and individual circumstances. Certain plans work better 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 restriction to which 401(k) companies we can connect you to . From offering financial planning education, counseling individual employees on retirement planning, and helping you navigate how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) consultant services are an invaluable aspect of any 401(k) plan.
Advantages of Offering a 401(k) Plan | Westwood, MO 401(k) Companies
The benefits of offering retirement planning to staff through 401(k) companies are evident. Almost 40% of employers who did not offer 401(k) plans stated that their business was not bringing in enough earnings. But there are many reasons why initiating a 401(k) plan for your employees might be best for your bottom line down the road. The 401(k) consultants at Correct Capital will put together an extensive guide to the various benefits certain plans 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 stated that 55% of Americans thought they would search for a new job in 2021 and 2022. Workers feel 45% more assured about their retirement when their employer has a retirement plan. What better way to keep your favorite employees than letting them know their financial well-being is important to you, even after they've left the workforce?
Motivating Employees | Westwood, MO 401(k) Companies
Many Westwood, MO companies give greater contributions when particular performance goals are met. Incentivizing a 401(k) plan, such as offering a Profit-Sharing Contribution Plan, can be an effective way to keep your best employees motivated to continue their performance.
Plan Startup Tax Credits | Westwood, MO 401(k) Companies
Small and medium companies can collect a tax credit for plan startup expenses if they meet three requirements dictated by the IRS:
- You had less than 100 workers who received 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.
- In the three years prior, you did not already have a retirement plan in place that benefited substantially the same employees.
The tax credit is accessible for a maximum of three years, and there is a different tax credit for adding an automatic enrollment feature to a new or extant 401(k) plan.
Further Tax Advantages
Apart from the startup tax credit, the IRS offers two additional tax benefits for sponsoring a 401(k) plan:
- Employer contributions are tax-deductible to the extent that the contributions do not go over the limits set out in Section 404 of the Internal Revenue Code.
- Elective deferrals and investment gains are not taxed and enjoy tax deferral until distribution.
One of the features that sets Correct Capital apart from other 401(k) advisors in Westwood, MO is that we offer financial planning as a service to your participating staff. Through group education gatherings, we'll make certain your employees understand the ideal investment opportunities for themselves, understand how your 401(k) program works, and understand how it's serving them. We can also have one-on-one sessions to go through financial portfolio and asset management with individual staff. When a new member joins your team and they had a 401(k) plan with their old employer, we can help them 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 many different plans through many different 401(k) companies. The most frequently used plans are:
- Traditional 401(k) Plans: This is an employer-sponsored plan that offers a wide array of investment options. Employers may equal their employees' contributions. Taxes are paid when the savings and earnings are withdrawn.
- Roth 401(k) Plans: Roth plans are analogous traditional plans, with the exception contributions are made with after-tax dollars. Gains obtained 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 at least 59-½ years old.
- SIMPLE 401(k) Plans: These plans exist specifically for small businesses looking for a cost-efficient way to offer their workers retirement benefits. 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 pay; or
- A non-elective contribution of 2% of a worker's pay.
- Safe Harbor 401(k) Plans: Safe Harbor plans are similar to 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 conduct its yearly nondiscrimination tests.
When we first meet with you, we'll gain an understanding of your Westwood, MO business and your employee's retirement needs to offer the best type of 401(k) plan for you.
Other services we offer in Westwood, 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 | Westwood, MO 401(k) Companies
Correct Capital is unique among Westwood, MO 401(k) advisors because we offer the level of individualized care as smaller advisory firms, but pair it with the same knowledge, professionalism, and connections as larger firms. We offer independent and objective direction, always with your best interest in mind; as an Accredited Investment Fiduciary®, it's our legal and ethical duty to do so. Our retirement consultants have been trusted to introduce businesses to 401(k) companies for more than 25 years and presently 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.