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Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Cornerstone Building Brands-sponsored plan. You may also gain more investment options than what may have been available in your Cornerstone Building Brands-sponsored plan. You may also gain oversight of managing these important retirement assets from your trusted Advisor.
If you roll your retirement plan assets over into an IRA account that you already own through your Advisor, you also receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.
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Some of the benefits of rolling your money into an IRA include:
Tax-deferred growth potential: This generally avoids current income tax and distribution penalties when removed from a Cornerstone Building Brands-sponsored retirement plan.
More investment choices: This allows for additional contributions, if eligible. IRAs can be combined and handled by one provider, thereby reducing trustee costs and consolidating statements. Protection from creditors in federal bankruptcy proceedings. The combined amount of your required minimum distributions (RMDs) can be taken from any of your Traditional, SEP or SIMPLE IRAs.
However, there are also some important considerations that Cornerstone Building Brands should make before rolling over their money into an IRA, these include:
- Internal management fees might be higher than in a Cornerstone Building Brands-sponsored retirement plan.
- Fees and expenses depend largely on the investments you choose.
- Loans from an IRA are not allowed.
- Early distributions may be subject to a 10% IRS tax penalty in addition to income tax.
- RMDs begin April 1 following the year you reach 70½ and annually thereafter; leaving the money in the former Fortune-500 plan may allow RMDs to be delayed until separation from service.
- IRAs are subject to state laws governing malpractice, divorce, creditors (outside of bankruptcy), and other lawsuits; leaving the money in the former Cornerstone Building Brands-plan may provide additional protection against creditors.
- Net unrealized appreciation (NUA) is the difference between what you paid for employer securities and their increased value. You lose favorable tax treatment of NUA if the funds are rolled into an IRA.
Hopefully, these insights will be helpful as you plan your retirement from Cornerstone Building Brands.
For more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/will-your-retirement-plan-retire-with-you-e-brochure-offer
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What is the 401(k) plan offered by Cornerstone Building Brands?
The 401(k) plan at Cornerstone Building Brands is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.
How can I enroll in the 401(k) plan at Cornerstone Building Brands?
Employees can enroll in the Cornerstone Building Brands 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
Does Cornerstone Building Brands match employee contributions to the 401(k) plan?
Yes, Cornerstone Building Brands offers a matching contribution to the 401(k) plan, which helps employees boost their retirement savings.
What is the maximum contribution limit for the 401(k) plan at Cornerstone Building Brands?
The maximum contribution limit for the Cornerstone Building Brands 401(k) plan is set according to IRS regulations, which may change annually.
Can I change my contribution percentage for the 401(k) plan at Cornerstone Building Brands?
Yes, employees can change their contribution percentage for the Cornerstone Building Brands 401(k) plan at any time through the HR portal.
What investment options are available in the Cornerstone Building Brands 401(k) plan?
The Cornerstone Building Brands 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, to suit different risk tolerances.
When can I start withdrawing from my 401(k) plan at Cornerstone Building Brands?
Employees can typically start withdrawing from their Cornerstone Building Brands 401(k) plan at age 59½, but there are specific conditions and options available.
Is there a loan option available through the 401(k) plan at Cornerstone Building Brands?
Yes, Cornerstone Building Brands allows employees to take loans against their 401(k) savings, subject to certain terms and conditions.
What happens to my 401(k) plan if I leave Cornerstone Building Brands?
If you leave Cornerstone Building Brands, you have several options for your 401(k) plan, including rolling it over to an IRA, leaving it with the plan, or cashing it out.
How often can I change my investment allocations in the Cornerstone Building Brands 401(k) plan?
Employees can change their investment allocations in the Cornerstone Building Brands 401(k) plan as often as they like, typically through the HR portal.
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