- Where Does Interest on a 401(k) Loan Go?
Deciding to borrow from your 401(k) is a decision that shouldn’t be taken lightly. Before moving forward you should understand the full picture of what happens when you do and what your potential risks are going to be. One major aspect of borrowing from your retirement is the topic of where the interest goes. That… read more…
- Ask an Advisor: Should I Delay Social Security and Rely on My 401(k) for 8 Years? I Have $750k in Savings and a Pension
Is it a viable plan to use my 401(k) for the eight years between retirement (age 62) and the max payout age for Social Security (age 70)? I have about $750,000 and I’m planning to take about $1,700 per month. I already have a pension of about $1,500 per month. –Lynne Waiting to file for… read more…
- Spouses May Soon Need to Agree on 401(k) Withdrawals Under This Proposed Law
Congress could soon change how spouses access their retirement accounts. A pair of Democratic bills recently introduced in the House and Senate would require spouses to consent before either one can make any withdrawals from their 401(k) accounts. The bills, sponsored by Rep. Lauren Underwood, D-Illinois, and Sen. Tammy Baldwin, D-Wisconsin, seek to amend the… read more…
- What Is the Interest Rate on a 401(k) Loan?
If you borrow from your 401k account, your employer’s retirement account plan documents will determine how much interest you’ll pay on the loan. Adding 1% to the prime rate is a common approach to setting this rate. It usually will be lower than the interest charged on a personal loan, credit card cash advance or… read more…
- Does Your Employer Know If You Take a 401(k) Loan?
Your employer technically will always know when you borrow money from your 401(k). One of the tricky parts about managing a 401(k) loan is that, even though this money belongs to you, your employer can set terms and conditions around taking… read more…
- How Much You Can Borrow From Your 401(k)
If you contribute to a 401(k) retirement account, you may be able to take a loan from the plan. The maximum amount you can borrow is limited to the lower of $50,000 or up to 50% of your vested account… read more…
- How Much Your 401(k) Grows If You Stop Contributing
It can be satisfying to watch your 401(k) plan balance grow over time as you contribute to it. But what happens when those contributions stop? The amount your account will grow depends on how much money you have in it… read more…
- How to Open a 401(k) Without an Employer
Employer-sponsored 401(k) plans are a popular way for workers to save for retirement, but they’re not the only way. If you’re self-employed or your employer doesn’t offer a 401(k), there are retirement savings vehicles out there that will work for… read more…
- Can Your 401(k) Lose Money?
Investing in a 401(k) account offers the potential for long-term growth and financial security. However, it’s crucial to understand that this retirement savings vehicle is not immune to losses. Your 401(k) is investing in the stock market, so it’s possible… read more…
- How Roth 401(k) Matching Works With Your Employer
Changes to federal law governing retirement savings plans allow employers to make matching contributions to employees’ 401(k) accounts using after-tax dollars as with a Roth 401(k). Employees get to choose whether contributions will be made after-tax or pretax. However, the… read more…
- How to Check Your 401(k) Balance
If you started a 401(k) and then forgot about it, you may be wondering how you can check back in on the account and see how it’s doing. In this article, we’ll cover how to check your 401(k), how often… read more…
- How to Convert After-Tax Dollars From 401(k) to IRA
Contributing after-tax dollars to a 401(k) might appeal to you if you’d like to be able to withdraw funds tax-free in retirement. Should you decide to leave your job you might be wondering if it’s possible to roll over an… read more…
- How 401(k) Automatic Enrollment Works
If your employer’s 401(k) plan has auto-enrollment, you’ll automatically start making contributions to your account once you’re eligible. Under a federal law enacted in 2022, most new 401(k) plans must auto-enroll all eligible employees starting in 2025. Existing plans don’t… read more…
- Survey Shows Plan Sponsors Are Looking at 401(k) Fees
Saving for retirement is a key part of financial planning for most people. Unless you have a vast inheritance coming your way or you’re OK working until your very last day, you’ll need to start squirreling away money so you… read more…
- Can the IRS Take Your 401(k)?
A 401(k) plan can help you build wealth for retirement while enjoying some significant tax benefits. You might assume that your retirement assets are untouchable, but that’s not always true. For instance, can the IRS take your 401(k)? You might… read more…
- How to Roll Over Your 401(k) Into An Annuity
When you leave a job where you had a 401(k) it’s important to understand what your options are for rolling over your tax-advantaged plan. Cashing out is another option but can result in significant taxes. Many choose to roll their… 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…