401(k) Help for Individuals and Small Businesses in Santa Clarita

Your 401(k) may be one of the largest assets you own, yet most people get little one-on-one help with it. Your plan’s website can’t tell you whether your mix still fits your goals, what to do with the account from your last job, or how your 401(k) fits the rest of your financial life.

That’s where Virtue Wealth Management comes in. If you’re looking for a 401(k) advisor in Santa Clarita, we work with small business owners who want to start or improve a company 401(k), and with employees and self-employed people in Santa Clarita, Stevenson Ranch, Valencia, and across the U.S. who want a second set of eyes on their 401(k). We are an advisor with a fiduciary standard for our clients, and we explain things in plain English.

401(k) Plans for Small Businesses

If you own a business with fewer than 50 employees, we can help you start a 401(k) or review the one you have. We are an advisor with a fiduciary standard, and we help owners:

• Start a new plan: compare plan types and providers, and design choices such as eligibility, employer contributions, and automatic enrollment.
• Review or fix an existing plan: look at plan design, investments, and administration, and work with your providers on what needs attention.
• Understand costs: walk through the fee disclosures your providers must give you, so you can judge whether fees are reasonable.
• Understand your fiduciary duties: as a plan sponsor, you’re responsible under federal law (ERISA) for how the plan is run and how its investments are chosen and monitored.
• Explore startup tax credits: under the SECURE 2.0 Act, eligible employers with 100 or fewer employees may qualify for credits toward startup costs (up to $5,000 a year for three years) and employer contributions (up to $1,000 per eligible employee, phasing down over five years), plus $500 a year for three years for adding automatic enrollment. Eligibility rules apply; consult your tax advisor.

In California, employers with at least one employee and no qualified retirement plan generally must register for CalSavers, the state’s automatic-enrollment IRA program, or certify an exemption. A 401(k) is one way to meet that requirement. It allows employer contributions and higher contribution limits than CalSavers, but also brings plan costs and fiduciary responsibilities.

Request a small business 401(k) review

What a 401(k) review with Virtue covers

A 401(k) review is a structured look at your account and how it fits your retirement plans. We look at:

• Investment choices and allocation — whether your mix across the plan’s fund menu matches your time horizon and comfort with risk.
• Fees and expenses — what your funds and plan cost, in plain terms.
• Contributions — how much you’re saving, any available employer match, and your Roth and traditional choices.
• Beneficiaries — whether the people listed are still the ones you intend.
• Old accounts — 401(k)s or IRAs from previous jobs.
• The bigger picture — how your 401(k) connects with your other savings and retirement timing.

You’ll leave with a clear sense of what’s working, what may need attention, and your options for next steps.

How often should you check your 401(k)?

The short answer: less often than you might think, but more deliberately.

• Daily or weekly: Usually adds stress without insight. Short-term market moves are normal, and reacting to them can backfire.
• Quarterly: A quick look at your statement to confirm contributions are going in.
• At least once a year: A thorough review of allocation, contributions, fees, and beneficiaries.
• After a life change: A new job, marriage, divorce, a new child, or a retirement date coming into view.

The annual and life-event reviews are where an advisor can help most. Markets can shift your allocation away from where you started, and your goals change. A periodic 401(k) review with an advisor gives you a scheduled moment to look at the whole picture and make changes on purpose rather than in reaction to headlines.

Roth vs. traditional 401(k) contributions

Many plans let you choose traditional (pre-tax) contributions, Roth (after-tax) contributions, or a mix. In general:

• Traditional contributions go in before income tax, which can lower your taxable income now. Withdrawals in retirement are generally taxed as ordinary income.
• Roth contributions go in after tax, so there’s no upfront deduction. Qualified withdrawals, including earnings, can be tax-free if certain age and holding-period requirements are met.

People often weigh their current tax bracket against what they expect in retirement, their time horizon, and whether they want both taxable and tax-free income later. There isn’t one right answer, and the choice can change over a career. In a review, we walk through how each option fits your broader plan. Please consult your tax advisor about your specific situation.

Changing jobs? Your options for an old 401(k)

If you’re weighing a 401(k) rollover in Santa Clarita after a job change, start with the full picture. A plan participant leaving an employer typically has four options (and may engage in a combination of these options), each choice offering advantages and disadvantages:

• Leave the money in his/her former employer’s plan, if permitted;
• Roll over the assets to his/her new employer’s plan, if one is available and rollovers are permitted;
• Roll over to an IRA; or
• Cash out the account

No single option is right for everyone. Here’s how they compare:

Details worth comparing before you decide:

• Fees, investment options, and services: Compare fund expenses, administration and advisory fees, the range of investments, and the guidance or tools that come with each option.
• Creditor protection: Employer plans covered by federal law (ERISA) generally have broad creditor protection. IRA protection outside bankruptcy depends largely on state law. Consult an attorney if this is a concern.
• Required minimum distributions (RMDs): RMDs generally begin at an age set by federal law, which has changed in recent years. If you’re still working, your current employer’s plan may let you delay RMDs from that plan; IRAs don’t offer that exception.
• The age 55 rule: If you leave your job in or after the year you turn 55, withdrawals from that employer’s plan may avoid the 10% additional federal tax. That generally doesn’t carry over to an IRA.
• Employer stock: If your plan holds company stock, special tax rules may apply.

A direct (trustee-to-trustee) rollover generally avoids mandatory withholding. Because rollovers and distributions have tax consequences, consult your tax advisor before deciding.

In the interest of transparency: if you roll money into an IRA that Virtue manages, we would be paid for managing that account. That is a conflict of interest, and it’s why we lay out all four options. For more background, read our article on what happens to your retirement plan when you switch jobs.

Getting closer to retirement

The years before retirement bring new questions: when and how to start withdrawals, how your 401(k) works alongside other accounts, and how your investment mix may change as you shift from saving to spending. A review in those years can show where you stand and what decisions are coming, and our retirement income planning connects your 401(k) to the rest of your plan.

Self-employed? Solo 401(k) and SEP IRA basics

If you’re self-employed or own a business with no employees other than a spouse, two common options are:

• Solo 401(k) (also called a one-participant 401(k)): Designed for owner-only businesses. You can contribute both as the “employee” (salary deferrals) and as the “employer” (profit-sharing contributions). Depending on the provider, Roth contributions and loans may be available. Once plan assets pass an IRS threshold, an annual filing is generally required.
• SEP IRA: Funded with employer contributions based on a percentage of compensation. Setup and administration are generally simple. If you have eligible employees, you generally must contribute the same percentage for them.

Contribution limits for both are set annually by the IRS; see the IRS pages on one-participant 401(k) plans, SEP plans, and 401(k) contribution limits for current figures. Which option fits depends on your income, whether you plan to hire, and how much administration you want. Consult your tax advisor about deductions. If you’re considering a solo 401(k) in Santa Clarita, our solo 401(k) page has more detail.

For companies with 50 or more employees

If your company has 50 or more employees and you want to set up a 401(k), 403(b), or deferred compensation plan for your employees, or improve the plan you already have, visit our related firm, Retirement Partners of California, which focuses on retirement plans for companies with 50 or more employees. If your business has fewer than 50 employees, see 401(k) Plans for Small Businesses above.

How Virtue helps

Our services for individuals include financial planning, investment management, retirement income planning, and 401(k) advisory. A 401(k) review is a simple way to start:

1. Request your review — Share a few details, and we’ll follow up to schedule a time.
2. Look at the details — We review your statements, your plan’s investment menu, and your goals.
3. Talk it through — We explain what we see and your options, in plain English, with no pressure.
4. Ongoing help, if it’s a fit — Periodic reviews as your life changes.

FAQs

How often should I check my 401(k)?

For most people, a quick look at quarterly statements is enough to confirm contributions are going in. Plan on a thorough review at least once a year and after major life changes, such as a new job or an approaching retirement date. A periodic review with an advisor can help you make changes deliberately rather than in reaction to market swings.

What happens during a 401(k) review with Virtue?

We look at your investment choices and allocation, fees, contributions, beneficiaries, and any old accounts, then talk through how your 401(k) fits your retirement goals. You come away with a clear picture of where you stand and your options for next steps.

What are my options for an old 401(k) when I change jobs?

Generally four: leave it in your former employer’s plan, move it to your new employer’s plan, roll it to an IRA, or cash out. Each has trade-offs in fees, investment choices, services, creditor protection, required minimum distributions, and taxes. Consult your tax advisor before deciding.

Should I make Roth or traditional 401(k) contributions?

It depends on factors like your current and expected future tax brackets and how long until you need the money. Traditional contributions can lower your taxable income now; qualified Roth withdrawals can be tax-free later. Many people use a mix. Consult your tax advisor about your situation.

What’s the difference between a solo 401(k) and a SEP IRA?

Both are retirement plans for self-employed people. A solo 401(k) is for owner-only businesses and allows both employee and employer contributions, and may offer Roth contributions and loans depending on the provider. A SEP IRA is funded only by employer contributions and generally must include eligible employees. The IRS sets contribution limits for both each year.

Do you only work with people in Santa Clarita?

No. We’re based in Stevenson Ranch / Santa Clarita and work with clients in Valencia and throughout the Santa Clarita Valley, as well as across California and the U.S.

Does Virtue Wealth Management follow a fiduciary standard?

Yes. We are an advisor with a fiduciary standard for our clients.

Ready for a second opinion on your 401(k) or your company’s plan?

Whether you own a small business, you’ve just changed jobs, you’re a few years from retirement, or you haven’t looked closely in a while, request a 401(k) review with Virtue Wealth Management. We’ll help you understand where you stand and your options.

Request your 401(k) review

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. This page is for educational purposes and is not personalized investment advice.

Before deciding whether to keep assets in an employer-sponsored plan, move them to a new employer’s plan, roll them to an IRA, or take a distribution, consider all of your options and the fees, expenses, services, and investment choices of each. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.