SMEED CPA, Inc | 201 Sand Creek Road, Suite F | Brentwood, CA 94513 | Phone: 925-634-2344

       

 

 

Michael Uadiale, CPA, ACA, CGMA

SMEED CPA, Inc.

 

Call our Testimonial Hotline & give us your feedback at:

 

800-609-9006 extension 3638

 


 

Other Articles

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This Month's Feature Articles

- Paying Off Debt the Smart Way
- Travel & Entertainment: Maximizing Tax Benefits
- Tips for Safeguarding Financial Records
 

Tax Tips

- Managing Tax Records After You File
- Best Filing Status for Married Couples
- Injured or Innocent Spouse Relief: The Facts

 


 

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Changing Jobs? Don't Forget to Roll Over Your 401(k)

Statistics show that we change jobs an average of 10 times throughout our careers. It's always a bit of a stressful process, even if you're leaving your previous position by choice.

 

Unfortunately, I have one more thing to put on your long list of things to do the next time you swap employers, but you'll thank me later: Roll over your 401(k).

Why? Well, first of all, you don't want to make the mistake I did in my 20s, which was to cash out my 401(k) and hit the stores for a few nice outfits.

 

And, in most cases, you don't want to leave it with your former employer. Rolling your money over into an IRA gives you more control, and very likely more investment options, fewer fees, and overall better performance.

It's a bit of a tricky process, but nothing to shy away from. Here's the low down:

Determine whether you want to roll over. As I said, the times when it doesn't make sense to roll over are few and far between. Most 401(k) plans have minimal investment options and higher costs, making an IRA a better option.

"It's very rare that an individual would leave an employer and want to keep the money in their 401(k). The only time this happens is if the 401(k) plan has many different investment choices -- meaning usually 30 or more -- the investment performance has been very good, and expense ratios are very low


There is one thing to keep in mind: Generally speaking, if you retire at or after age 55, the IRS allows you to take money out of a 401(k) without incurring an early-withdrawal penalty. If you've rolled your money into an IRA, you're out of luck until you're 59 1/2. If you're early in your career, this probably isn't a consideration for you, because once you get another job, you'll likely be able to roll your money into your new company's 401(k). If this is a concern, though, talk to your current plan's administrator.

Note: Whether you can leave money in an old employer's 401(k) -- and whether you can roll money from an IRA into a new employer's 401(k) -- is completely up to the employer. You may not have a choice in the matter.

Decide where you want to put your money. You have to roll into an IRA, but who houses that IRA is up to you.

When you leave, you're going to roll over to either a bank, credit union, insurance company, mutual fund company, or big brokerage firm. It's important that you find a custodian that will give you a whole host of investment options, that are fair in cost or low-cost, and that has had decent investment performance. You also obviously want someone who can answer the phone, answer your questions, and give you good service.

Once you're in that IRA, you have the option to convert it to a Roth IRA. In 2010, anyone can convert a traditional IRA to a Roth IRA, regardless of income. A Roth allows your money to grow tax-free forever. There are, however, a few downsides: You're required to pay taxes on the amount converted, and, if you make more than $176,000 as a married couple filing jointly or $120,000 as a single filer, you're not eligible to make the maximum contribution to the account. That means while you can convert the cash you currently have saved, you'll have to find a new account, like a 401(k) or another traditional IRA, to continue saving more.


Ask for a direct rollover. As you likely know, withdrawing from a 401(k) early costs you big time: 10% right off the top, plus the amount you pulled out is treated as income for tax purposes. If your old 401(k) plan cuts you a check, you're responsible for getting it to the new IRA within 60 days. If you're a day late, or there's a mistake with your paperwork, you could be out of luck.

I hope you all find this information helpful. Please contact me if you have any question regarding your 401k and or any other financial question.  Pablo Blanco.

 


 

SMEED CPA Adds Financial Services To Help Clients With Investments & Insurance Needs

So often we here at SMEED CPA are asked about financial issues that impact our clients investments and their portfolios. 

We always offered our opinion and suggestions but in order to help our clients actually execute the changes we suggest, SMEED has created a Financial Services division.

 

SMEED Financial Services, Inc. will be able to work with both individual and business clients on their investment portfolios and manage assets on their behalf.

 

SMEED Financial will include Michael Uadiale, ACA, CPA, CGMA; and Pablo Blanco who has recently joined SMEED and comes with over 18 years of financial sales and advising experience with affluent investors.

Watch your inbox and mail boxes for more specific information on services SMEED Financial Services, Inc will make available to you.

 


 

Would You Give Me Your Feedback & Testimonial on Our Hotline?

 

Hello its Michael Uadiale, CPA of SMEED CPA Inc.  Weve just installed a toll-free number that I would like for you to call and tell me how you think we are doing as your CPA firm.

 

Just dial 800-609-9006 extension 3638 and follow the instructions.  If weve done a good job please let me know.  And if we can improve on anything, please mention that too.

 


 

Help Us Be Found on Yelp & Google!

 

Also as we expand our business, we find more and more people are using YELP and Google to look for us by searching Brentwood accountant or Brentwood CPA.

 

When they do this we want to be FOUND on GOOGLE.  One way you can help us is to give us an ONLINE REVIEW on our Google Maps/Places listing --->

or on our YELP local listing below.

 

Just click here to go to our Google Listing for SMEED CPA and click on the YELP link to go there.  Scroll down to the Review area.

 

On either site it may say:  Been here? Rate and review

You will click on the Rate and review link and then log in, then give us a review!

 

You can choose between 1 and 5 STARS and write in what you think about the tax or accounting work we have done for you.

 

It's that simple.  Thank you in advance for your help and cooperation!

 


 

As always you can call our offices if you have any questions about these or any other accounting related issues, at 925-634-2344. 

 

Regards, Michael Uadiale, CPA, ACA, CGMA

Managing Partner, SMEED CPA, Inc.

 
 

 

SMEED CPA, Inc | 201 Sand Creek Road, Suite F | Brentwood, CA 94513
The Next Frontier CPA Firm | www.SmeedCPA.com | info@smeedcpa.com
Phone: 925-634-2344 | Fax: 925-634-2346 | Cell: 925-207-6771