Qmulate provides plans that give the participants flexibility to contribute to either or both a Roth and a Traditional 401(k), at no extra cost to the company. A Roth 401(k) allows participants to contribute funds on a “after-tax” basis, compared to “pre-tax” contributions for a Traditional 401(k).

Roth could make sense for employees if their tax bracket will be the same or higher in retirement than it is currently. This usually applies to younger employees who are early in their careers. Income contributed to a Roth 401(k) is taxable the year in which it is earned, while earnings and interest gains remain untaxed even upon withdrawal.

Employers are allowed to match a Roth plan; however, employer contributions cannot receive Roth tax treatment and must be allocated to a pre-tax account, usually a Traditional 401(k).

IRA stands for Individual Retirement Account and is available regardless of employment status, including to those who are unemployed or self-employed. Anyone who has earned income and is below the age of 72 can contribute to a traditional IRA.

A 401(k) is a benefit that can only be offered through an employer. Once an employee is enrolled in a company-sponsored plan, a 401(k) is easy and passive—automatic deductions are taken from each paycheck. There is no income restriction for contribution to a 401(k), but IRA has an income cap and far lower contribution maximum.

The annual contribution limit for a 401(k) in 2021 is $19,500/year versus $6,000/year for an IRA for those under the age of 50, and $25,500/year versus $7,000/year for those over the age of 50.

If employees decide that they want to make their own investment decisions, they can simply elect to manage their own portfolio via the core fund lineup or through the Self Directed Brokerage Account.

Yes, if you decide to opt out of our investment advice, you are free manage and choose from the available funds in the plan lineup consisting of all the major asset classes and risk categories, pre-determined by your employer.

Your plan supports rollovers, and we will help you with the process. We can help you with the process when and if you would like to do that. Note that the IRS prohibits rolling over a Roth IRA into a 401(k).

If you would like to rollover an old 401(k) or 403(b) into either a ROTH or Trad IRA outside of the 401(k) plan, contact us for assistance: support@qmulatecapital.com We would be happy to discuss your options and the process.

Yes, however it is typically inadvisable and uncommon for employees to take out loans from their retirement plan. They can usually get a better rate on loans from almost any other source.

The biggest issue for employees is that they would be paying loans back with after-tax dollars, which is effectively double taxation, as they pay taxes again once the money is withdrawn from the 401(k). The government tries to dissuade people from dipping into their nest eggs, just as they try to incentivize contributions into a 401(k).

In addition, the employee would pay interest rate of prime plus 1%, along with an origination fee and annual maintenance fee- both fees are determined and charged by the Third Party Administrator.

The loans must be repaid within 5 years and are subject to other restrictions. If the employee leaves the company, the loan is due in full within 60 days.