- 71% of People Think Social Security Will Run Out – Are They Right?
Young and middle aged adults are particularly pessimistic about the future of Social Security, but their greatest fears will likely never come to fruition. The Nationwide Retirement Institute’s 2021 Social Security Survey found that 71% of people worry Social Security will run out of funding in their lifetimes, while a considerable percentage of Millennials and… read more…
- Missing Retirement Funds? Proposed “Lost and Found” Could Help
There might be missing money out there with your name on it. A pair of bills in Congress could make it easier to find it. The two bills introduced earlier this year call for the creation of an Office of the Retirement Savings Lost and Found within the federal Pension Benefit Guaranty Corporation. The new… read more…
- Why Is Gen Z Saving More for Retirement Than Their Parents?
A 2021 survey from TransAmerica says that the youngest generation of American adults is getting a jumpstart on retirement by saving a lot earlier than older generations. Financial experts will point out that this is in part due to the decline of pensions and the rise of defined contribution plans like 401(k)s, which allow employees to… read more…
- Where Your Social Security Could Go Further Under Projected Massive COLA Increase
As inflation continues to soar, senior citizens next year could receive their largest increase in Social Security benefits in nearly four decades. The Senior Citizens League, a nonpartisan senior advocacy group, projected the annual Cost-of-Living Adjustment (COLA) could be a whopping 6.2% in 2022. That would constitute the largest year-over-year hike in Social Security benefits… read more…
- Are IRA Contributions Pre-Tax?
There are many ways to save for retirement, but one of the best is to get an individual retirement account (IRA). These are especially useful if you don’t have access to a workplace retirement account, like a 401(k) or 403(b).… read more…
- What Is a Money Purchase Plan?
Employees covered by company retirement plans are familiar with defined-contribution plans like 401(k), 403(b) or SEP-IRA accounts. A money purchase plan is another such employer-sponsored plan that can help you save for retirement. It is similar to these other accounts, except that the contributions are typically made by the company instead of the employee. In… read more…
- Eligible Designated Beneficiary Requirements
A designated beneficiary is an individual or entity chosen to inherit assets from a retirement account, such as an IRA or 401(k), after the account holder’s death. Under the SECURE Act, eligible designated beneficiaries include surviving spouses, minor children of the account holder, disabled or chronically ill individuals, and those who are less than 10… read more…
- One-Third of American Workers Are Leaving Free Money on the Table
A 401(k) plan, and other workplace retirement plans like a 403(b) plan, is the most common way for American workers to save for retirement. With Social Security simply not enough to cover expenses for most people and traditional pension plans rarely used anymore outside of the public sector, taking full advantage of your 401(k) is… read more…
- How Do Mega Backdoor Roths Work?
A mega backdoor Roth is a unique 401(k) rollover strategy that’s designed for people whose incomes would ordinarily keep them from saving in a Roth Individual Retirement Account. The advantage of using a Roth IRA to save for retirement is… read more…
- Types of Retirement Explained
The prospect of retirement sparks a myriad of questions about how much you have saved up, where you want to live and when you plan to start. Retirement used to connote a post-work life of leisure on the front porch or golf course, with some travel thrown in. But that might not be the type… read more…
- Retirees Can Beat Inflation With This Investment Technique
When managing your nest egg in retirement, there are a number of decisions to make surrounding which withdrawal rate to use and how to rebalance your portfolio. Perhaps the most key, though, is answering what types of investments should you make after you’ve left the workforce. A major strategic decision in this regard hinges on… read more…
- How to Become a 401(k) Millionaire
The number of 401(k) and IRA millionaires reached an all-time high in the first quarter of 2021, according to Fidelity Investments. Retirement account balances have been steadily recovering in the year since COVID first emerged, even surpassing pre-pandemic levels. Today, more… read more…
- Who Qualifies for a Widow’s Pension?
Surviving spouses are not the only ones eligible for survivor benefits—also known as a widow’s pension—under the 1939 amendments to the Social Security Act. Other parties close to the deceased may also be able to claim Social Security benefits on their record. The Social Security Administration sets specific rules for widow’s pension payments. Below is… read more…
- How Does Government Pension Offset Work?
One of the most valuable perks of working for the government is the pension. Previously, government pensions could reduce or eliminate spousal or survivor benefits from Social Security due to a policy known as the Government Pension Offset (GPO). These reductions often caused financial concerns for retirees who expected to receive both incomes in retirement.… read more…
- How to Retire With $5 Million
Even with $5 million saved, managing your retirement nest egg wisely is essential to ensure it supports both your needs and lifestyle goals throughout your retirement years. Proper planning can help that wealth last for 20 to 30 years or more. To make the most of your savings, consider strategies that balance income generation, growth… read more…
- The 60-Day Rollover Rule for Retirement Plans
If you have more than one retirement account, it’s possible to extend a short-term loan to yourself when you need cash in an emergency. This involves initiating an indirect rollover from one retirement account to another. But there’s just one… read more…
- Retirement Plan Options to Consider
Having one or more retirement accounts can help you realize your long-term financial goals, including growing wealth and securing a comfortable retirement. Workplace plans, Individual Retirement Accounts and self-employed retirement accounts are just some of the ways you can save.… read more…
- 401(k) Rollovers: The Complete Guide
A 401(k) rollover is the process by which you move the funds in your 401(k) to another retirement account—usually either an IRA or another 401(k). A 401(k) rollover typically happens when you leave your employer, either to retire or to start a new job. There are certain regulations you need to follow when rolling over your assets,… read more…
- How an In-Service 401(k) Rollover Works
If you’ve ever changed jobs, chances are you’ve considered rolling over your old 401(k) to an individual retirement account. But can you roll over your 401(k) even if you haven’t changed jobs? The answer lies in what’s known as an in-service… read more…
- How to Roll Over an IRA to a 401(k)
Rolling over your 401(k) to an individual retirement account is common practice when starting a new job. But what about doing the opposite: moving IRA assets into a 401(k) plan? While not nearly as common, these “reverse rollovers” do exist… read more…
- How to Set Up a 401(k) Account
Since their inception in 1987, 401(k)s have become the private sector’s most common employer-sponsored retirement plan — the Investment Company Institute says that there are roughly 60 million active participants in 2020. Participating in your company’s 401(k) is a key component of… read more…
- How to Withdraw Money From Your 401(k)
The 401(k) has become a staple of retirement planning in the U.S. Millions of Americans contribute to their 401(k) plans with the goal of having enough money to retire comfortably when the time comes. Whether you’ve reached retirement age or… read more…
- Comparing Different Types of 401(k) Plans
A 401(k) plan can be a simple and effective way to save money for retirement on a tax-advantaged basis. While employers increasingly favor these defined contribution plans in lieu of traditional pensions, they aren’t all alike. There are different types… read more…
- Basic Facts About FERS Disability Retirement
The Federal Employees Retirement System (FERS) provides retirement and disability benefits to eligible workers. If you become disabled, you may be eligible to receive FERS disability retirement payments which are different from regular retirement benefits. There are specific requirements that… read more…
- How Is the Rule of 85 Applied to Retirement?
In place of a 401(k) plan, your employer may offer a defined benefit pension plan for retirement savings. These plans follow different guidelines for withdrawals, including the rule of 85, which governs what type of payment you’re eligible for should… read more…