- Can You Lose Your 401(k)?
Employer-sponsored retirement plans are one of the best ways for working Americans to build wealth. They offer tax advantages, allow your money to grow over time and many employers even match your contributions. But the job market is changing and… read more…
- How Your Employer Can Protect $150K of Your Retirement Savings
Borrowing money from your 401(k) can seem like a fast, efficient and low-cost alternative to taking out a personal loan or a line of credit. Since you’re both the borrower and lender, repaying a 401(k) loan means you earn interest from yourself. But 401(k) loans come with a considerable risk: the possibility of a costly… read more…
- Can Your Spouse Empty a 401(k) Without Your Consent? Senators Call on Government to Investigate
Saving for retirement is one of the most pressing concerns for many Americans, and how to safeguard those funds is an equally important consideration. Private employer-sponsored defined contribution plans have become the primary retirement account vehicle, with more than 90% of eligible workers contributing to a retirement plan this past year. However, unlike the traditional… read more…
- New Bill May Allow Penalty-Free 401(k) Withdrawals for This Retirement Expense
When planning for the future, health care ranks as one of the highest concerns for both savers and retirees alike. Not only are health care costs rising by more than 5% every year, but rampant inflation and volatile market performances have also added extra pressure to retirement savings, making many older Americans wonder if they… read more…
- Can You Have More Than One 401(k)?
Wondering if you can have more than one 401(k)? The answer is yes, but with some qualifications. You can contribute to multiple 401(k) plans if you work for different employers. You may also do so if your employer offers both traditional and Roth options. However, the IRS sets combined contribution limits across all your 401(k)… read more…
- Here’s Why Crypto May Threaten Your 401(k)
Given Bitcoin’s meteoric rise and enduring popularity, many investors might be interested in investing in cryptocurrencies as part of their portfolios. Nowadays, retirement savers can even take advantage of tax-leveraged accounts like self-directed IRAs and invest in cryptocurrencies and other alternative investments. However, the U.S. Department of Labor (DOL) recently released a report recommending against… read more…
- Does Your Net Worth Include Your 401(k)?
Your 401(k) and other retirement accounts often make up a large portion of your net worth. And net worth is one of the most important benchmarks for appraising your financial health. Growing your retirement accounts can improve your financial outlook and support your long-term goals. A financial advisor can help you build a financial plan to grow your… read more…
- Did You Know Alternative Investments Could Be Putting Your 401(k) at Risk?
Retirement savings plans have included alternative investments for more than 30 years. Plan sponsors view alternatives as complementary to traditional stock investments and annuities — but most plan participants don’t even know their 401(k) savings include these asset classes. A study released in February 2022 aims to shed light on these under-the-radar investments. Is it… read more…
- Is a 401(k) Worth It?
Until the 1980s, most of America used pensions to plan for retirement. Offered by employers, these defined-benefit plans set up a fund on behalf of workers in order to calculate each employee’s retirement benefits individually. This put all the responsibility and associated risks on the pension fund and the employer. Therefore, they were responsible for… read more…
- Here’s Why Your 401(k) Savings Are Mysteriously Increasing
The data is in: 401(k) savings have hit record levels. Profit-sharing and 401(k) plans enjoyed more participation than ever before–all despite the negative impact of the COVID-19 pandemic. The reason? The impact of a government program leads to higher contributions, even if the saver isn’t always aware of it. A financial advisor could help you… read more…
- 408(k) Plans vs. 401(k) Plans
The 401(k) retirement plan is the most widely known and used employer-sponsored retirement plan. The 408(k) is another type of employer-directed retirement plan in which small business employees can participate. It is also called the simplified employee retirement plan (SEP-IRA). Both the 401(k) and the 408(k) refer to sections of the Internal Revenue Service Tax… read more…
- How to Rebalance Your 401(k)
A 401(k) can be a fundamental part of your retirement savings plan. Knowing when – and how – to rebalance 401(k) assets is important for managing risk and achieving your investment goals. Rebalancing simply means selling securities periodically to stay aligned with your preferred asset allocation. This is something that may be done for you… read more…
- Should You Max Out Your 401(k)?
Living comfortably in retirement is a crucial part of the traditional American Dream. But many Americans struggle to save enough before they leave the workforce. According to a 2021 survey from the Insured Retirement Institute, 51% of older workers don’t… read more…
- Cashing Out Your 401(k): What You Need to Know
You know the goal of your 401(k) plan is to save. But while you’ve been working hard to contribute part of your salary, life may get in the way. It may be dozens of unexpected medical bills or your house… read more…
- What Is the Average 401(k) Match?
Saving for retirement comes with its struggles. However, you may already know the rates that retirement guides recommend to you. For example, save 15% of your income per year. Or have such-and-such percentage saved by age 35. But maximizing your 401(k) savings takes a little more than contributing as you can. One opportunity waiting for… read more…
- Profit-Sharing Plan vs. 401(k)
Two of the most widely used employer-sponsored retirement plans are 401(k)s and profit-sharing plans. Both of these are tax-advantaged retirement plans, meaning that the IRS taxes contributions to these plans differently, if at all. Here’s how each of these plans work.… read more…
- HSA vs. 401(k): What’s the Difference?
Health savings accounts (HSAs) and 401(k) accounts are both savings vehicles that offer substantial tax benefits for people planning for retirement. Beyond that, there are significant differences between the two. HSAs are narrowly focused on paying for costs related to… read more…
- Thrift Savings Plans vs. 401(k) Plans
Thrift savings plans (TSPs) and 401(k) accounts are two vehicles used to save and invest for retirement. Both operate similarly in many ways, including tax advantages, caps on contributions and requirements for minimum withdrawals in retirement. However, TSPs are only… read more…
- Using a 401(k) vs. Stock Picking
Contributing to a 401(k) retirement account and investing in individual stocks outside a retirement account represent two drastically different approaches. A 401(k) account is part of many employer-sponsored retirement plans. They offer immediate tax savings and, sometimes, employer matching of… read more…
- Social Security vs. 401(k)
When planning for retirement, it’s important to consider what income streams you’ll have to cover living expenses. For many people, Social Security is a key part of the income puzzle though it may be accompanied by a 401(k) plan. If… read more…
- Congress Could Make Your Employer Offer You a 401(k)
While many companies offer their employers access to 401(k) plans, there is no requirement mandating them to do so. But this could soon change under a proposal that would require more employers to offer their workers 401(k) plans and other tax-advantaged retirement savings plans. A financial advisor can help you sort out your retirement accounts… read more…
- Eligible Designated Beneficiary Requirements
A designated beneficiary is an individual or entity chosen to inherit assets from a retirement account, such as an IRA or 401(k), after the account holder’s death. Under the SECURE Act, eligible designated beneficiaries include surviving spouses, minor children of the account holder, disabled or chronically ill individuals, and those who are less than 10… read more…
- 401(k) Rollovers: The Complete Guide
A 401(k) rollover is the process by which you move the funds in your 401(k) to another retirement account—usually either an IRA or another 401(k). A 401(k) rollover typically happens when you leave your employer, either to retire or to start a new job. There are certain regulations you need to follow when rolling over your assets,… read more…
- How an In-Service 401(k) Rollover Works
If you’ve ever changed jobs, chances are you’ve considered rolling over your old 401(k) to an individual retirement account. But can you roll over your 401(k) even if you haven’t changed jobs? The answer lies in what’s known as an in-service… read more…
- How to Roll Over an IRA to a 401(k)
Rolling over your 401(k) to an individual retirement account is common practice when starting a new job. But what about doing the opposite: moving IRA assets into a 401(k) plan? While not nearly as common, these “reverse rollovers” do exist… read more…