401(k) Companies in Westwood, MO
401(k) Companies in Westwood, MO. Establishing a 401(k) plan with dependable 401(k) advisors is a wonderful way for small and mid-sized businesses in Westwood, MO to draw and hold onto employees, incentivize great production, and receive those much-needed tax breaks. Correct Capital Wealth Management has been introducing employers to trusted 401(k) companies in Westwood, MO for more than 20 years. Call us today at 877-930-4015 or contact us online to find out more about what Correct Capital can do for your Westwood, MO business and employees.
As of 2020, defined-contribution (DC) plans like 401(k)s made up $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 companies in the United States with under 50 employees offer a 401(k) plan as an employee benefit, and more than a third have no current aim 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 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 valued employees, it is crucial to turn to a trustworthy, 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 stable 401(k) companies to bring you and your employees the retirement solutions that serve your best interests and unique situation. Specific plans work better for certain companies, and our Westwood, MO 401(k) advisors help determine the preferred 401(k) company and plan for you and your employees. As independent retirement consultants, 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 assisting you understand how to best carry out a great 401(k) policy as an employer, Correct Capital’s 401(k) advisory services are a crucial aspect of any 401(k) program.
Benefits 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. Thirty-nine percent of employers who did not offer 401(k) plans said that their company was not bringing in enough earnings. But there are a lot of reasons why setting up a 401(k) plan for your employees may be best for your bottom line down the road. The 401(k) advisors at Correct Capital will put together an all-inclusive guide to the various advantages certain programs will have for you. Among them are:
Recruiting and Retaining Talent | Westwood, 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 feel 45% more at-ease about their retirement when their employer has a 401(k) plan. What better way to hold on to your hardest working employees than assuring them that you care about their financial security, even after they've moved on?
Incentivizing Employees | Westwood, MO 401(k) Companies
Many Westwood, MO businesses offer greater contributions when particular performance goals are met. Incentivizing a 401(k) plan, for example, offering a Profit-Sharing Contribution Plan, can be a successful way to keep your employees' motivation high and to keep up their performance.
Plan Startup Tax Credits | Westwood, MO 401(k) Companies
Small and medium companies are able to get a tax credit for plan startup costs if they meet three requirements stipulated by the IRS:
- You had less than 100 workers who collected at least $5,000 in compensation from you the year prior.
- You had a minimum of one plan participant who was a non-highly compensated employee.
- Your business 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 available for a maximum of 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.
Further Tax Benefits
Apart from the startup tax credit, the IRS offers two added tax benefits for sponsoring a 401(k) program:
- Employer contributions are tax-deductible to to the point that they do not go over the limits dictated by 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 Westwood, MO businesses. We'll strive to decrease your tax liability as part of our 401(k) services.
Employee Education
One of the aspects 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 employees. With group education meetings, we'll make certain your employees recognize the ideal investment opportunities for themselves, are aware of how your 401(k) plan functions, and see 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 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) consultants at Correct Capital can help your business initiate many 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 includes a wide array of investment options. Employers may equal their employees' contributions. Taxes are paid when the savings and gains are withdrawn.
- Roth 401(k) Plans: Roth plans are similar to traditional plans, but 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 continuing the account for 5 years and they are 59-½ years old or older.
- SIMPLE 401(k) Plans: These plans are specially for small businesses looking for a cost-effective 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:
- A matching contribution of up to 3% of a staff members earnings; or
- A non-elective contribution of 2% of a staff members earnings.
- Safe Harbor 401(k) Plans: Safe Harbor plans are much the same to regular 401(k)s, with the exception the employer must make contributions that are fully vested when made. In consideration of for required contributions, the IRS does not perform its annual nondiscrimination tests.
When we first meet with you, we'll get to know your Westwood, MO business and your employee's retirement needs to identify the ideal type of 401(k) plan for you.
Other services we offer in Westwood, MO include:
- Succession Planning
- Fiduciary Financial Advisor
- Company 401(k) Plans
- ESOP Advisor
- Self-Employed Retirement Plans
- 401(k) For Small Business
- Small Business Retirement Plans
- Tax Planning
The Correct Capital Difference | Westwood, MO 401(k) Companies
Correct Capital is unique among Westwood, MO 401(k) advisors because we provide the degree of personalized care as smaller advisory firms, but pair it with the same knowledge, experience, and connections 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 ethical obligation to do so. Our retirement consultants have been trusted to connect businesses to 401(k) companies for over two decades and at present we represent over $230 million in total plan assets nationwide. Call us at 877-930-4015 or contact us online to go over your 401(k) needs today.
