When it comes to saving for retirement, a 401(k) is one of the best options available. This type of account offers tax breaks and allows you to save money on a pre-tax basis. Cetera is one of the largest providers of 401(k) plans in the United States.
In this article, we will provide an overview of Cetera 401(k)s, including reviews, benefits, fees and ratings.
Cetera 401(k) - Reviews, Benefits, Fees & Ratings Table of Contents
What is a Cetera 401(k)?
A Cetera 401(k) is a retirement savings plan offered by Cetera Financial Group. It is available to employees of Cetera-affiliated firms and provides a way to save for retirement with pretax dollars.
How Does a Cetera 401(k) Work?
A Cetera 401(k) works by allowing employees to save and invest for their future retirement. Employees can contribute to their 401(k) with each paycheck, and the money is then invested into a variety of different investment options.
What Are The Key Features of a Cetera 401(k)?
There are a few key features that make a Cetera 401(k) stand out from other retirement plans. First, there is no vesting period. This means that you can start taking distributions immediately upon leaving your job.
Additionally, Cetera offers a wide variety of investment options and the ability to self-direct your account. This means you have a lot of control over how your money is invested and can choose from a variety of different asset classes.
Finally, Cetera has low fees relative to other 401(k) providers. This is important because it means more of your money will stay in your account and grow over time.
What Commissions and Management Fees Does a Cetera 401(k) Come With?
There are three different types of fees that a Cetera 401(k) can come with: commissions, management fees, and investment fees.
Commissions are the fees that are charged by the broker in order to buy or sell investments on behalf of the account holder. These fees can range from $0 to $100 per trade, depending on the broker.
Management fees are charged by the investment manager in order to manage the account. These fees can range from 0.25% to 0.50% of the account value per year.
Investment fees are charged by the investment itself and can include things like expense ratios and 12b-fees. These fees can range from 0.25% to over 0.50% of the account value per year.
What Are The Advantages of a Cetera 401(k)?
There are several advantages of having a Cetera 401(k). One advantage is that it can help you save for retirement. Another advantage is that it can provide you with tax breaks.
Additionally, a Cetera 401(k) can also help you diversify your investment portfolio. Finally, a Cetera 401(k) can provide you with peace of mind knowing that your retirement savings are taken care of.
What Are The Disadvantages of a Cetera 401(k)?
The biggest disadvantage of a Cetera 401(k) is the fees. The annual fee for a Cetera 401(k) is $120, which is high compared to other options. Additionally, there is a $30 account closing fee if you close your account within the first year.
Another downside of a Cetera 401(k) is the customer service. There have been many complaints about the customer service being unresponsive and difficult to work with.
Finally, the investment options offered by Cetera are limited. If you're looking for a wide variety of investment options, you'll likely be disappointed with what Cetera has to offer.
What Are Some Alternatives to a Cetera 401(k)?
There are a few alternatives to a Cetera 401(k).
One is called a 403(b), which is offered by many nonprofit organizations.
Another option is the 457 plan, which is offered by state and local governments.
Lastly, there are Roth IRA accounts, which are individual retirement accounts that have after-tax contributions.
How Do You Open a Cetera 401(k)?
You can open a Cetera 401(k) online or by visiting one of their branch locations. The process is pretty simple and straightforward. You'll need to provide some personal information and then choose how you want to fund your account. You can do this via payroll deductions or by making a one-time deposit.
Once your account is open, you'll need to decide how you want to invest your money. Cetera offers a variety of investment options, so you can choose the one that best fits your needs and goals. You can also change your investments at any time, so don't worry if you're not sure what to do at first. Just take your time and research the options before making a decision.
Once you've made your investment choices, all you need to do is sit back and watch your money grow. Cetera will automatically reinvest your dividends and make sure that your account stays on track to reach your goals. You can also login to their website to check on your account balance and performance anytime.
What is The Minimum Amount Required to Open a Cetera 401(k)?
The minimum amount required to open a Cetera 401(k) account is $25. This is a very low minimum compared to other investment firms.
What Are The Cetera 401(k) Contribution Limits?
The Cetera 401(k) contribution limits are pretty standard when compared to other 401(k) providers. The employee contribution limit for 2019 is $19,000, with a catch-up contribution of $6000 for employees aged 50 and over. The employer contribution limit is also standard at $56,000 per year.
What Are The Eligibility Requirements for a Cetera 401(k)?
To be eligible for a Cetera 401(k) plan, you must be at least 21 years old and have worked for your employer for at least one year. You also must have earned at least $600 in the calendar year prior to enrolling in the plan.
Do You Pay Taxes On a Cetera 401(k)?
The answer to this question is a little complicated. For the most part, you will not have to pay taxes on your Cetera 401(k) until you withdraw the money. However, there are some exceptions to this rule.
If you withdraw money from your Cetera 401(k) before you reach the age of 59 ½, you will likely have to pay a penalty. Additionally, you will have to pay taxes on the money that you withdraw.
The best way to avoid having to pay taxes on your Cetera 401(k) is to wait until you reach retirement age before withdrawing any money. At that point, you will only have to pay taxes on the money that you withdraw.
When Can You Withdraw Money From a Cetera 401(k)?
You can withdraw money from your Cetera 401(k) at any time, but there may be penalties for early withdrawal. You will also have to pay taxes on the money you withdraw. Withdrawals are not taxed if they are used to pay for qualified medical expenses, or if they are taken after age 59 ½.
How Does a Cetera 401(k) Compare to a 401K?
The average Cetera 401(k) account balance is $70,825. This is compared to the $91,626 that the average 401K account balance was in 2019. This puts Cetera at 23% below the industry average.
However, when looking at fees, Cetera’s are much higher than the industry average. Cetera has an annual fee of $120 compared to the industry average of $48. This means that Cetera’s fees are 250% higher than the industry average!
What Assets Are Available With a Cetera 401(k)?
Cetera offers a wide variety of assets to choose from when investing in a 401(k). Some of the asset classes available include:
- Domestic stocks
- Foreign stocks
- Mutual funds
- Commodities .
Why Do People Use a Cetera 401(k)?
People use a Cetera 401(k) because it offers a number of advantages. For example, it allows you to save for retirement on a tax-deferred basis. This means that you won't have to pay taxes on your investment earnings until you withdraw them in retirement.
Another advantage of a Cetera 401(k) is that it offers employer matching contributions. This can be a great way to boost your retirement savings.
Finally, a Cetera 401(k) can provide you with access to professional money management services. This can be helpful if you're not sure where to invest your retirement savings.
Does a Cetera 401(k) Accept Rollovers?
Cetera 401(k) plans do accept rollovers from other eligible retirement plans, such as a traditional IRA or another employer's 401(k) plan. To initiate a rollover, you will need to contact Cetera directly.
How Long Does It Take to Transfer to a Cetera 401(k)?
It can take up to two weeks for your old 401(k) provider to transfer your account to Cetera. During this time, you will not be able to make any changes to your account.
Once the transfer is complete, you will be able to access your account online and start making changes.
How Do You Put Money Into a Cetera 401(k)?
You can set up a Cetera 401(k) by contributing to it through payroll deductions from your paycheck. If your employer offers matching contributions, you may also be able to receive employer contributions.
Can You Open a Cetera 401(k) For a Child?
Cetera 401(k) plans are available for children as well. This can be a great way to start saving early and take advantage of compounding interest.