- 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 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…
- 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…
- SIMPLE IRA vs. 401(k): What Is the Difference?
A 401(k) plan is one of the most flexible workplace retirement plan options available, while a SIMPLE IRA plan is less flexible but also less complex to use and administer. Each of these have their own distinct pros and cons,… read more…
- Who Should Make After-Tax 401(k) Contributions?
Your employer may allow you to make after-tax 401(k) contributions. These are not tax-deductible like your regular 401(k) contributions, but you can make after-tax deferrals beyond the annual 401(k) contribution limit. Plus, the earnings from these extra contributions grow tax-free.… read more…
- 401(a) vs. 401(k): What’s the Difference?
Interested in investing in your retirement? You know you should be socking money away for your golden years, but you need to understand the savings vehicle your employer offers. The 401(k) plan, which for-profit employers offer, is a popular way… read more…
- 401(k) Plans for Small Business Owners
Small business owners can boost employee recruitment and retention and help themselves and their workers save for retirement by establishing a 401(k) plan. These plans can only be set up by employers, and offer valuable tax benefits including tax-free growth… read more…
- What Is a 401(k) True-Up?
A 401(k) true-up is an end-of-year calculation that some employers use to make sure that they have contributed everything they owe to an employee’s retirement plan. True ups occur in retirement plans with matching contribution benefits. If your employer offers… read more…
- 401(k) Contribution Limits for 2025
Contributing to your 401(k) is a great way to prepare for retirement, allowing for tax-deferred growth and, in some cases, employer matching contributions. If you really want to boost your savings, you might even contribute the maximum to the account. For… read more…
- What to Do When You Overcontribute to Your 401(k)
Did you just find out that you overcontributed your 401(k) plan? If you act quickly, you can minimize the damage. But if you wait, the tax bill and inconveniences will multiply. So if you’ve overcontributed to your 401(k), the plan… read more…
- Responsibilities of a Fiduciary in a 401(k) Plan
Every 401(k) plan has at least one person who handles administering the plan and investing its assets. This role is known as plan fiduciary and it carries with it important responsibilities, including avoiding conflicts of interest, following good investment practices… read more…
- You Can Make a $10,000 Bonus Contribution to Your 401(k), But You Need to Fit Into This Narrow Age Window
If you’re behind on your retirement savings, you got some welcome news in December when President Biden signed the SECURE 2.0 Act into law. The landmark legislation establishes a higher limit on catch-up contributions for people between 60 and 63… read more…
- 10 Tips for Managing Your 401(k) Account
With automatic payroll deduction funneling in contributions without you lifting a finger and target-date fund managers making buy-and-sell decisions sight unseen, the typical 401(k) account can appear to be an ideal set-and-forget solution for retirement saving and investing. However, while… read more…
- How to Protect Your 401(k) From Inflation
When inflation rises above normal levels, protecting 401(k) accounts from inflation becomes an increasing focus of 401(k) owners. Diversifying your 401(k) portfolio, especially with value-priced shares of companies that make consumer staples value-priced and recently issued short-term bonds represents a… read more…
- Investing With a 401(k) vs. Index Funds
Index funds are low-cost mutual funds designed to track the performance of groups of stocks, while 401(k) accounts are tax-advantaged retirement accounts many businesses offer to workers. These two investing vehicles provide different benefits that generally complement each other, and both… read more…
- What Is a 401(k) Blackout Period?
From time to time an employer will have to make structural changes to their 401(k) plan. When that happens, they might need to freeze changes to the plan overall. This is called a “blackout period.” During black periods a 401(k)… read more…
- 401(k)s vs. Brokerage Accounts
Brokerage accounts and 401(k)s offer different advantages and disadvantages for investors and savers alike. Brokerage accounts are taxable, but provide much greater liquidity and investment flexibility. 401(k) accounts offer significant tax advantages at the cost of tying up funds until… read more…
- Morningstar Says This Brokerage Account Can Help You Save More for Retirement Than a 401(k)
Many Americans save for retirement through 401(k)s. These accounts offer tax-deferred benefits, which means that your money can grow tax-free until you make a withdrawal. But for those who don’t have access to an employer-provided retirement account, or simply want… read more…
- Is a 401k Considered an Asset?
Your 401(k), and any other retirement accounts, are financial assets. These are portfolios in which you hold securities and investment products that have either realized or potential value. This makes your 401(k) portfolio an asset in your name as long… read more…
- Why Maximize a 401(k) Without an Employer Match?
When an employer matches your contributions to a 401(k), it represents one of the best retirement savings opportunities around. Not only does the match effectively double the size of your contribution up to the employer’s matching limit, but employer contributions… read more…
- A Roth 401(k) Just Got a Lot More Attractive
A Roth 401(k) is a solid option for retirement savers, especially those who don’t anticipate finding themselves in a lower tax bracket when they retire. A Roth 401(k) works similarly to other retirement savings accounts — you put your money… read more…