- This Lucrative Retirement Tactic Dodged Biden’s Axe
President Biden signed the Inflation Reduction Act into law in August 2022. This is a trimmed-down version of the Build Back Better Act, a $1.75 trillion social spending initiative that had struggled to get votes in Congress. The expanded bill… read more…
- How to Roll Over a Pension Into an IRA
Private sector employers that once offered workers traditional pensions, typically defined benefit plans, have been encouraging people to roll over their pensions into tax-advantaged plans like individual retirement accounts (IRA) and 401(k)s. If you’re considering such a move, it’s important… read more…
- What Is a Self-Directed 401(k)?
Self-directed 401(k) plans let savers decide how to invest their pre-tax retirement contributions. Rather than being limited to the pre-approved funds typically offered by traditional 401(k) plans, self-directed 401(k) plans allow you to choose exactly where you’ll invest your money.… read more…
- How the Employer Match Works With the 401(k) Limit
A 401(k) is an employer-sponsored, tax-advantaged retirement plan. You fund this account by contributing a set percentage of your paycheck into the account. One of the biggest perks of a 401(k) plan is that employers have the option to match your… read more…
- How to Take Money Out of a 401(k) Plan
Taking money out of a 401(k) is a big decision. The specifics of how to take money out of a 401(k) plan depend on your age, employer plan, whether you’re still working for the company that sponsors your 401(k) plan… read more…
- The Average 401(k) Balance by Age
It can be hard to know if your retirement savings are on track, but comparing your balance to where others similar in age are can help. In particular, taking a look at the average 401(k) balance by age is a good place… read more…
- 401(k) Vesting and What It Means for You
Any money that you put into your 401(k) is yours. But when it comes to employer match contributions, things work a little differently. To own any portion of your employer’s contributions, you’ll need to vest in your employer’s match contributions.… read more…
- 403(b) vs. 401(k): Comparing Retirement Plans
If you’re starting a new job, there’s a good chance you’re going to have the option to join an employer-sponsored retirement plan, and it’ll probably be one of two types of plans: a 403(b) or a 401(k). Both are defined… read more…
- Everything You Need to Know About 401(k) Fees
Since pensions have become less common, many Americans now rely on employer-sponsored, defined contribution plans like 401(k)s or 403(b)s to cover much of their retirement needs. In fact, the Investment Company Institute says that 401(k) plans held roughly $7.3 trillion… read more…
- How to Execute a 401(k) to Gold IRA Rollover
Rolling over a 401(k) plan into a traditional or Roth IRA is a fairly common practice. You’ll often do this when you’ve left your former employer and want to keep your retirement savings all in one place. But you may… read more…
- What Are 401(a) Plans?
Saving for retirement is one of the most important financial steps you can take. If you don’t, you could end up entering what should be your golden years struggling to make ends meet. One of the most common ways to… read more…
- How Does 401(k) Matching Work?
One of the easiest ways to save for retirement is to contribute to your 401(k). Set up through your employer, a 401(k) allows you to set aside a certain amount of each paycheck before income taxes apply. Sometimes, your employer… read more…
- How Are 401(k) Assets Split in a Divorce?
Going through a divorce can be one of the most difficult experiences you’ll ever undergo. But it doesn’t have to ruin your financial future. There are certain steps you can take to protect your nest egg during divorce proceedings, and… read more…
- Annuity vs. 401(k): Which Is Better for Retirement?
Choosing the right way to save for retirement based on your personal needs is easier said than done. There are many options available, with annuities and 401(k) plans being some of the most prominent. While these two popular retirement savings… read more…
- How to Roll Over a Roth 401(k) to a Roth IRA
Saving through a Roth 401(k) can help you grow a nest egg that you can then tap into in retirement without having to pay taxes. If you leave your job or you’re ready to retire, you may be wondering what… read more…
- What Is the Average Monthly Retirement Income?
Wondering how your retirement savings stack up to other Americans’ nest eggs? Or whether your income in your post-work years will be enough to keep you afloat? It’s normal to be curious about the average retirement income in the U.S.… read more…
- Age Limits for IRA Contributions
When it comes to retirement savings, your age can have a major effect on things. Depending on which type of retirement account you have, your age may define both when you can access your funds and how much money you can… read more…
- What Is the 401(k) Tax Rate for Withdrawals?
One of the most attractive features of a 401(k) plan is that you can contribute pretax dollars throughout your career. This reduces your taxable income and allows you to contribute more to your retirement with each paycheck. That said, you’re… read more…
- Average 401(k) Return: What You Can Expect
Many retirement planners suggest the typical 401(k) portfolio generates an average annual return of 5% to 8% based on market conditions. But your 401(k) return depends on different factors like your contributions, investment selection and fees. And sometimes broader trends… read more…
- Does Disability Pay More Than Social Security?
Applying for Disability benefits has a reputation as a time-consuming and inefficient process. Consequently, many people entering their 60s who could potentially qualify for disability benefits may opt to just elect for Social Security a couple of years early to… read more…
- How Nonqualified Deferred Compensation (NQDC) Plans Work
A nonqualified deferred compensation (NQDC) plan is an arrangement that an employer and employee agree to where the employer accepts to pay the employee sometime in the future. Executives often utilize NQDC plans to defer income taxes on their earnings. They differ… read more…
- Gift Tax Limits: How Much Can You Gift?
For 2023, the annual gift tax exemption is $17,000, up from $16,000 in 2022. This means you can give up to $17,000 to as many people as you want in 2023 without any of it being subject to the federal… read more…
- The Average Salary by Age in the U.S.
The answer to how your earnings compare to others in your age group largely depends on where you live and what you do. But knowing the median salary of people the same age can tell you if you’re generally keeping… read more…
- What Is the Rule of 55 and How Does It Work?
Employer-sponsored, tax-deferred retirement plans like 401(k)s and 403(b)s have rules about when you can access your funds. As a general rule, if you withdraw funds before age 59 ½, you’ll trigger an IRS tax penalty of 10%. The good news… read more…
- How to Calculate Your Social Security Break-Even Age
Deciding when to take Social Security retirement benefits is important because it can directly affect your benefit amount. While you can technically start taking benefits as early as 62, you’d receive them at a reduced amount. On the other hand,… read more…