- How to Roll Over a 401(k) to a 403(b)
Rolling over your 401(k) to a 403(b) is only an option if you start a job that offers a 403(b) plan. These plans are typically available through public schools, nonprofits and certain government organizations. If you do become eligible, transferring your retirement savings from a 401(k) to a 403(b) can help consolidate your funds and… read more…
- How to Withdraw From Your 401(k) After Age 60
Reaching age 60 is a major financial milestone, particularly when it comes to your 401(k) retirement savings. While you can access your 401(k) without penalties after age 59 ½, there are important rules, strategies and tax implications to keep in mind. As you near or enter retirement, you’ll likely begin to consider how and when… read more…
- Can 401(k) Participants Also Make SEP IRA Contributions?
Many people who contribute to a 401(k) wonder if they can also make SEP IRA contributions. The answer depends on factors like employment status, income sources and how the SEP IRA is structured. Business owners and self-employed individuals often have more flexibility, while traditional employees generally cannot contribute directly to a SEP IRA unless they… read more…
- What Is the Average 401(k) Balance for Retirees?
For many Americans, the 401(k) is the cornerstone of their retirement savings strategy. Knowing where your 401(k) balance falls compared to others in your age range can help you determine whether you’re on track, ahead of the curve or falling behind when it comes to preparing for a comfortable and secure retirement. It can also… read more…
- I Inherited My Husband’s 401(k) With $615k. How Do Handle This Money to Reduce Taxes?
Inheriting a retirement account can be complicated. With a retirement account that you opened, you’re referred to as the original owner. You can contribute to this portfolio, manage it as you see fit, and leave the money in place subject only to required minimum distributions (RMDs) in some cases. When you inherit a retirement account,… read more…
- I Have $920k in My 401(k). What Should I Do With It When I Retire?
Retirement is about balance. In retirement, many households generate a fixed income from personal savings and Social Security benefits. Retirees rarely have dependents or long-term saving needs (although of course estate planning is a factor), so they may be able to focus more on their monthly numbers. Allocating your income streams, planning for taxes and… read more…
- Aged 60 to 63 With a 401(k)? Here’s How New Contribution Rules Could Impact Your Retirement Savings
The IRS now allows a narrow, specific window for accelerated catch-up contributions. Between the ages of 60 and 63, you can make additional catch-up contributions to tax advantaged retirement accounts. Per the SECURE 2.0 Act, at ages 60, 61, 62 and 63, individuals with an employer-sponsored retirement plan may contribute an additional $11,250 per year… read more…
- How Long Does It Take to Withdraw From Your 401(k)?
Generally, you should only make 401(k) withdrawals as you enter retirement, but there are certain situations in which you may do so earlier in life. Generally, withdrawing money from a 401(k) can take two to three business days for a direct transfer and roughly a week for a check, but the context in which you… read more…
- I Have $620k in My 401(k). What Should I Do With It When I Retire?
When it comes to retirement savings you have, essentially, three phases: saving, distribution and estate. Your saving phase is the one that people pay the most attention to. This is the era in which you build wealth during your working life and prepare for retirement. Your estate phase is the one that most people pay… read more…
- Super Catch-Up Contribution Limits for 401(k)s in 2025
The SECURE 2.0 Act introduced a new provision known as the “super catch-up” for individuals aged 60 to 63, allowing them to contribute more to their 401(k) accounts starting in 2025. Specifically, participants in this age range can now contribute an extra $11,250 to their 401(k) or a similar workplace plan. This enhanced catch-up contribution… read more…
- Can You Roll Over Your 401(k) When You Get a New Job?
You can move your 401(k) to another company when you get a new job. In the event of a job change or termination, you typically have several options for managing your old 401(k): leave it with your previous employer, transfer it to your new employer’s plan, or roll it into an IRA. A 401(k) to… read more…
- How to Use Your 401(k) to Invest in Real Estate
Most 401(k) plans invest in mutual funds, stocks, bonds, and other financial instruments, but you can also use these funds to invest in real estate. Real estate investing can diversify your retirement savings and potentially boost returns. To invest in real estate with a 401(k), you need to follow specific rules and choose the right… read more…
- Is Spousal Consent Required to Change 401(k) Beneficiary?
Changing the beneficiary of a 401(k) plan can involve specific requirements, particularly when it comes to spousal consent. In many cases, to protect your spouse’s financial interests, you need spousal consent to change your 401(k) beneficiary designation. This rule stems from federal regulations under the Employee Retirement Income Security Act (ERISA), which mandates that a spouse… read more…
- What Are the Rules for Late 401(k) Deferral Deposits?
Under the Department of Labor’s rules, employers must deposit employee deferrals into 401(k) plans as soon as administratively feasible, typically no later than the 15th business day of the following month. Late contributions to a 401(k) could therefore lead to penalties, interest charges and the need to file a Voluntary Fiduciary Correction Program (VFCP) application.… read more…
- How 401(k) Fee Disclosures Work
401(k) disclosures provide detailed information about the fees and expenses associated with your retirement plan. The costs associated with a 401(k) can significantly impact your retirement savings over time, so being aware of these fees can help ensure that you are maximizing your retirement savings and not overpaying for services you may not need. Reviewing… read more…
- How to Uncover Hidden 401(k) Fees
Many employees rely on 401(k) plans for retirement savings. But hidden fees in 401(k) plans, including administrative costs, investment fees and individual service fees, can significantly impact your retirement savings. Discuss fee structures with your plan administrator or financial advisor, who can help you optimize your investments. What Are Hidden 401(k) Fees? Hidden 401(k) fees… read more…
- Do 401(k) Contributions Automatically Stop When You Hit the Limit?
Your 401(k) contributions should automatically stop at the annual limit. For 2025, the IRS has set the contribution cap at $23,500, with an additional $7,500 catch-up contribution allowed for those over age 50. In most cases, payroll systems are designed to automatically stop 401(k) contributions once you reach the annual limit. However, not all employer… read more…
- 401(k) Beneficiary Rules for Non-Spouses
Understanding 401(k) non-spouse beneficiary rules is key for anyone planning their estate and retirement. When a non-spouse inherits a 401(k), the distribution options differ significantly from those available to a spouse. Non-spouse beneficiaries must follow specific guidelines regarding withdrawals, which can impact both taxes and the timeline for accessing the funds. Knowing these rules can… read more…
- Differences of Direct vs. Indirect Rollovers
Managing retirement savings effectively often involves rollovers, which allow investors to move funds from one retirement account to another without incurring taxes or penalties. In a direct rollover, the funds are transferred directly between accounts, while an indirect rollover requires the account holder to receive the funds before depositing them into a new retirement account.… read more…
- 401(k) Deferral Deposit Deadlines
Late 401(k) contributions can potentially lead to penalties and missed investment opportunities. Employers must adhere to strict deposit deadlines to comply with IRS regulations and ensure employees’ retirement savings grow as intended. Understanding these deadlines and the consequences of missing them is essential for both employers and employees to maintain the tax advantages associated with… read more…
- What Is the Solo 401(k) Contribution Deadline?
A solo 401(k) plan is a powerful retirement savings tool designed specifically for self-employed individuals and business owners without employees. These plans allow for both employee and employer contributions, providing flexibility and the potential for substantial tax advantages. To fully benefit from this retirement savings vehicle, however, it’s important to be aware of solo 401(k)… read more…
- What Is an Active Participant in a Retirement Plan?
Active participation in a retirement plan refers to an individual being involved in an employer-sponsored retirement program, like a 401(k) or pension plan, during a given tax year. This status affects eligibility for certain tax benefits, including the ability to deduct contributions to a traditional IRA. Knowing whether you are an active participant and understanding… read more…
- Why Is It Called a 401(k)?
The term “401(k)” comes from the section of the U.S. Internal Revenue Code that established this retirement savings plan. Introduced in 1978, Section 401(k) allows employees to defer a portion of their salary into individual accounts, which can be invested in various financial products. This tax-advantaged retirement plan gained popularity because it provides employees with… read more…
- How to Make a 401(k) Hardship Withdrawal
Facing financial hardship can be an overwhelming and stressful experience, especially when it feels like your options are limited. You may consider a 401(k) hardship withdrawal as a potential solution to your immediate financial needs if you’re younger than 59 ½. However, before making this decision, you’ll want to fully understand what a 401(k) hardship… read more…
- How to Max Out Your 401(k)
Approximately 86% of 401(k) participants don’t save the maximum allowed amount in their tax-advantaged employer-sponsored retirement plans, according to a 2022 study of retirement saving by Vanguard. If you’d like to max out 401(k) savings, techniques include automating contributions, increasing contributions over time, using catch-up contributions when available, taking full advantage of any employer matches,… read more…