- Debt Limit Ceiling Crisis Could Hit Your 401(k), Social Security and Medicare
America’s debt ceiling was reached — again — on January 19, 2023 as the country exceeded its $31.4 trillion spending cap. The cap was raised to that amount in December 2021. As much terms like “ceiling” and “cap” are used… read more…
- How to Transfer a 401(k) to a New Employer
If you have been hired for a new job, you may have left your 401(k) behind and would like to bring it to your new place of employment. You can certainly do that, and the process isn’t difficult. But there… read more…
- What Is a 401(k) Deferral Contribution?
A 401(k) deferral contribution is the amount of an employee’s salary that they elect to put in an employer-sponsored retirement savings plan. The portion of the salary that is deferred is not subject to income taxes for the current year.… read more…
- Roth 401(k) Contribution Limits for 2025
Saving for retirement is a top financial priority for many. If you’re one of those who has prioritized retirement by opening a Roth 401(k), it’s crucial to use the account optimally to build tax-free retirement income. The IRS has raised… read more…
- What Is In-Service Withdrawal for 401(k) Plans?
You might be able to transfer a portion of your 401(k) to an individual retirement account (IRA) while still employed. This is known as an in-service withdrawal. While in-service withdrawals can be a good option, that isn’t always the case. Here… read more…
- Understanding the Roth 401(k) Withdrawal Rules
When it comes to retirement savings, there are different routes you could go. You may have your traditional 401(k). You could also have an individual retirement account (IRA) or a Roth IRA. But what if you have a Roth 401(k)?… read more…
- HSA vs. 401(k)
Two of the most common vehicles for building savings are the 401(k) and the health savings account, or HSA. While the HSA isn’t a traditional retirement account, at least not formally, it can provide you with significant value when your… read more…
- How to Find Old 401(k) Accounts
It is not uncommon to lose track of an old 401(k) account after you change jobs. It’s easy for people to assume their 401(k) contributions continue when they get a new job. Financial services company Capitalize estimated that 24.3 million… read more…
- Don’t Let Your Old 401(k) Become an Orphan: Here’s What to Do
U.S. workers have left more than $1 trillion in 401(k)s with former employers. That might not be all bad, especially if those plans are doing well. However, sometimes they aren’t, and these tax-advantaged accounts are neglected by their owners. Before… read more…
- What Happens to Your 401(k) When You Quit a Job?
If you’re quitting a job, you may be pleased to leave behind certain disgruntled coworkers and perhaps an overbearing workload. But one thing you may want to take with you is your 401(k). And yet, contrary to what you might… read more…
- How Does a 401(k) Work When You Retire?
After retirement you can start withdrawing the money you have accumulated over the years in your 401(k). However, a number of rules govern retirees’ 401(k) distributions. For instance, in most cases to avoid penalties you have to wait until after… read more…
- Should You Pause 401(k) Contributions in a Bear Market? Morningstar Compares Alternatives
Morningstar recently compared the numbers on different scenarios for investors who may be thinking of pausing their 401(k) contributions. The result was not favorable for those who opted to stop contributing to their retirement plans, and the data showed that… read more…
- Making a 401(k) Withdrawal for a Home Purchase
Buying a home is an important financial milestone. In fact, it’s most likely one of the largest purchases you’ll make in your lifetime. You may be tempted to make a 401(k) withdrawal for a home purchase, especially if you need… read more…
- Here’s Why 401(k) Balances Went Up During the Pandemic
The COVID-19 pandemic changed the world in more ways that most people can count, from the way kids go to school to how restaurants operate. One change that may not have been easy to predict — the pandemic has led… read more…
- How to Protect Your 401(k) From a Stock Market Crash
Despite what the 2010s may have felt like, the stock market cannot go up forever. Corrections typically happen every few years when stocks decline 10% or more from their most recent peak. These can even last several months at a time. Stock market… read more…
- IRA vs. Roth IRA vs. 401k: Key Differences
Many employers offer 401(k)s and match your contributions. Other workplaces, however, might not offer this retirement plan. And, if you are an independent contractor, you may also be looking for another retirement plan alternative. In these cases, individual retirement accounts (IRAs)… read more…
- Some Americans Can Now Contribute $30,000 a Year to Their 401(k)
The Internal Revenue Service has been keeping busy these past few weeks with alterations to next year’s standard deduction, a Social Security boost and now an increase in 401(k) and other retirement contribution limits — all of which directly result… read more…
- Vanguard, Fidelity Will Join a 401(k) Auto-Portability Network to Rescue $1.5 Trillion in Retirement Savings
Two top 401(k) companies — Fidelity Investments and Vanguard — have teamed up with two information technology and services companies — Alight Solutions and Retirement Clearinghouse — to create an auto-portability network. If auto-portability gets adopted nationwide, these companies say that it… read more…
- 401(k) Plan Participants Say They Need to Save This Much to Retire
If $1 million was once the consensus target for retirement savings in the U.S., that appears to be changing. A recent Schwab Retirement Plan Services survey found that 401(k) plan participants across the country now believe they must save $1.9… read more…
- There’s a New Way to Convert Your 401(k) into a Pension-like Stream of Income
Creating reliable streams of retirement income is one of the most important elements of a person’s financial plan. A retirement industry giant says it now has a new way for retirees to meet this vital challenge. Fidelity Investments plans to… read more…
- Does 401(k) Rollover Count as IRA Contribution?
If you have an old 401(k) at work, you might decide to roll it over to an individual retirement account (IRA). But does 401(k) rollover count as IRA contribution? The good news is that rolling money from a 401(k) into… read more…
- Senators Call Out Fidelity for Adding Bitcoin to 401(k)s. Are You at Risk?
Democrat senators sent a letter to Fidelity Investments questioning why the company would allow its 401(k) participants to be exposed to Bitcoin. Legislators called the crypto investment a “volatile, illiquid and speculative asset.” In April 2022, Fidelity Investments announced that… read more…
- TIAA Recommends Getting In-Plan Annuity to Cover Higher Life Expectancy
When it comes to saving for retirement, workers often choose between investing in a popular defined contribution (DC) plan like a 401(k) or an annuity. But the Teachers Insurance and Annuity Association (TIAA) says that you should consider investing in… read more…
- Pensions May Actually Be Cheaper For Employers Than 401(k) Plans
With a few notable exceptions, the age of pensions is largely over in the U.S. Traditional defined benefit plans have replaced largely by defined contribution retirement vehicles like 401(k) plans. A new study from the National Institute on Retirement Security, though, seems to suggest that the end of pensions may not actually be as beneficial… read more…
- Nearing Retirement? This New 401(k) Program Provides Hands-on Investment Management
Long-term financial planning can be difficult, and while new automatic enrollment and contribution escalation make it easier than before to save for retirement, actually reaching retirement can be even more stressful. Switching from saving mode to the active retirement phase… read more…