401(k) Planning Services in Charlotte, NC

No, you are not required to use a financial advisor to manage a 401(k), but most Salem Lakes professionals benefit from one. A 401(k) advisor helps you choose the right investments inside your plan, capture your full employer match, decide between Roth and Traditional contributions, and coordinate your 401(k) with the rest of your retirement plan. For high earners, an advisor is especially valuable for advanced strategies like the mega backdoor Roth that are easy to get wrong alone. Serenity Wealth Management is a fee-based fiduciary firm in Salem Lakes.

The cost of a 401(k) advisor in Salem Lakes varies by advisor and how your assets are managed, with common models including a percentage of assets under management, a flat fee, or hourly billing. Serenity Wealth Management is a fee-based fiduciary firm in Salem Lakes, which means we are legally obligated to act in your best interest, and we explain exactly how we are compensated during your free initial consultation so there are no surprises.

The IRS employee contribution limit for a 401(k) is $24,500 for 2026, up from $23,500 in 2025. If you are age 50 or older, you can make additional catch-up contributions on top of that limit. High earners who max out the standard limit may be able to save even more through a mega backdoor Roth, if their plan allows after-tax contributions and in-plan conversions. Tax and contribution figures are current as of 2026 and may change; verify before acting.

Yes, Wisconsin taxes 401(k) and traditional IRA withdrawals as ordinary income across its graduated brackets, which run from about 3.5% up to 7.65% for 2025, while fully exempting Social Security and military retirement. Starting with 2025 returns, a new state law lets residents who are 67 or older subtract up to $24,000 of qualified retirement income ($48,000 for certain joint filers), though claiming it disqualifies you from certain other Wisconsin income tax credits that year. Because Wisconsin's rates climb with income, spreading withdrawals across years and coordinating them with this subtraction can meaningfully lower what you owe over retirement. Tax figures are current as of 2026 and may change; verify before acting.

A Roth 401(k) is funded with after-tax dollars, so qualified withdrawals in retirement are completely tax-free. A Traditional 401(k) is funded with pre-tax dollars, which lowers your taxable income now, but withdrawals are taxed as ordinary income in retirement. Because Wisconsin uses graduated brackets up to 7.65% and offers a retirement income subtraction for those 67 and older, the Roth-versus-Traditional choice for Wisconsin residents is worth modeling carefully, which is something we do with you.

When you leave a job, you generally have four options for your 401(k): leave it with your former employer, roll it into your new employer's plan, roll it into an IRA, or cash it out (usually the least favorable, due to taxes and penalties). This matters more in Wisconsin than in some neighboring states because Wisconsin taxes retirement distributions as ordinary income across graduated brackets, so a large cash-out can land in a higher state bracket on top of federal tax and a likely 10% penalty. A direct rollover into an IRA or new plan avoids that and often provides more investment choices and lower fees.

A mega backdoor Roth is a strategy that lets you contribute after-tax dollars to your 401(k) beyond the standard limit and then convert them to Roth, dramatically increasing your tax-free retirement savings. It only works if your employer's plan allows after-tax contributions and in-plan Roth conversions, and it is best suited to high earners who have already maxed out their other tax-advantaged accounts. It is a common fit for well-compensated professionals across southeastern Wisconsin and the Milwaukee area.

Rolling an old 401(k) into an IRA often gives you more investment choices, lower fees, and a single place to manage your retirement savings, but it is not the right move for everyone. Reasons to keep a 401(k) where it is can include strong low-cost institutional funds, broader creditor protection, or access to a mega backdoor Roth. The best choice depends on your specific plan, fees, and goals, which is why we compare all four options with you before recommending a rollover. A rollover, done correctly as a direct transfer, is not a taxable event.

At a minimum, you should contribute enough to capture your full employer match, since that is effectively free money. From there, many savers aim for 10 to 15 percent of income, and high earners often work toward the full IRS limit of $24,500 in 2026 plus catch-up contributions if eligible. The right target depends on your income, goals, and timeline, so we build a contribution plan around your actual numbers rather than a one-size-fits-all rule.

Serenity Wealth Management is a fee-based fiduciary financial advisory firm. Our office is located at 23042 75th Street, Salem Lakes, WI 53168, and we can be reached at (262) 382-3290. We help professionals across Salem Lakes, southeastern Wisconsin, and the greater Milwaukee area plan, manage, roll over, and maximize their 401(k) and overall retirement, working with clients both in person and virtually.