- How to Avoid the Early Withdrawal Penalty on Your 401(k)
The IRS has strict rules regarding when you can withdraw money from a tax-deferred retirement account like a 401(k). Doing so before age 59 ½ can trigger an early withdrawal penalty on top of income taxes. However, the IRS has designated specific situations in which a 401(k) account owner can qualify for penalty-free early withdrawals,… read more…
- I’m 55 With $1.2 Million in My 401(k). Would Catch-Up Contributions Be Worth It?
Catch-up contributions are designed to help people save extra money in tax-advantaged retirement accounts once they hit age 50. For many savers who are behind on their retirement savings goals, catch-up contributions represent a not-to-be-missed second chance at securing a more comfortable retirement. A financial advisor can help you plan and save for retirement. Connect… read more…
- 401(k) vs. Roth 401(k): Key Differences
An employer-sponsored 401(k) plan offers a tax-advantaged way to grow retirement savings, along with the potential for matching contributions. These plans come in two flavors: The traditional, tax-deferred kind, which lets you contribute pre-tax dollars, or a Roth 401(k), which is funded with after-tax dollars but lets you realize tax free growth and retirement income. So… read more…