- 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…
- How to Become a 401(k) Millionaire
The number of 401(k) and IRA millionaires reached an all-time high in the first quarter of 2021, according to Fidelity Investments. Retirement account balances have been steadily recovering in the year since COVID first emerged, even surpassing pre-pandemic levels. Today, more… 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…
- How to Set Up a 401(k) Account
Since their inception in 1987, 401(k)s have become the private sector’s most common employer-sponsored retirement plan — the Investment Company Institute says that there are roughly 60 million active participants in 2020. Participating in your company’s 401(k) is a key component of… read more…
- How to Withdraw Money From Your 401(k)
The 401(k) has become a staple of retirement planning in the U.S. Millions of Americans contribute to their 401(k) plans with the goal of having enough money to retire comfortably when the time comes. Whether you’ve reached retirement age or… read more…
- Comparing Different Types of 401(k) Plans
A 401(k) plan can be a simple and effective way to save money for retirement on a tax-advantaged basis. While employers increasingly favor these defined contribution plans in lieu of traditional pensions, they aren’t all alike. There are different types… read more…
- Understanding Your 401(k) Rollover Options
You just landed a new job, and with it, an opportunity to move your career forward. Now comes an important decision: what should you do with your 401(k) from your former employer? While you can choose to leave your 401(k)… read more…
- An Overview of 401(k) Rollover Rules
When rolling over a 401(k) from a previous employer, there are several important rules to keep in mind to avoid costly taxes and penalties. Central to this transaction is choosing between a direct or indirect rollover, and then understanding your responsibilities as the account holder in either scenario. A financial advisor can help you pick the best… read more…
- Should I Roll Over My 401(k)?
There’s a lot to consider when deciding whether to roll over your 401(k) after a job change. The available options of keeping your account with your former employer or rolling it over into a new tax-deferred plan pose a number… read more…
- Indexed Universal Life (IUL) vs. 401(k)
When creating your personal retirement plan, there are a variety of tools you can use to fund your long-term savings goals. An employer-sponsored 401(k) is one of them while indexed universal life insurance (IUL) is another. A 401(k) allows you… read more…
- What Is a Qualified Retirement Plan?
Saving for retirement is an important financial goal to have and the sooner you begin, the better. Finding the right asset allocation for your portfolio is important, but it’s also helpful to consider asset location, meaning where you decide to… read more…
- Can You Have Both a 401(k) and a Roth IRA?
Investing in both a 401(k) and Roth IRA can be a powerful combo for any retirement savings plan. That is, if you’re eligible. Here’s what to know about qualifying for a Roth IRA and how opening one in addition to an… read more…
- A Guide to Inheriting a 401(k)
Inheriting a 401(k) on the death of the account owner isn’t always as straightforward as inheriting other types of assets. The IRS has certain rules that 401(k) beneficiaries must follow to determine when and how much tax they’ll pay to… read more…
- 401(k) vs. Roth 401(k): Key Differences
An employer-sponsored 401(k) plan offers a tax-advantaged way to grow retirement savings, along with the potential for matching contributions. These plans come in two flavors: The traditional, tax-deferred kind, which lets you contribute pre-tax dollars, or a Roth 401(k), which is funded with after-tax dollars but lets you realize tax free growth and retirement income. So… read more…
- 457(b) vs. 401(k) Plans: What’s the Difference?
When saving for retirement, your employer may give you a hand by offering a tax-advantaged savings plan. Your options might include a 401(k) plan or a 457(b) plan. Both plans allow you to contribute money towards retirement on a tax-deferred… read more…
- Which Companies Have the Best 401(k) Matching?
When deciding where to work, salary and perks often take center stage, but one of the most overlooked benefits can also be one of the most valuable: the 401(k) match. A strong employer-sponsored retirement plan has the power to supercharge your savings, sometimes adding thousands of dollars a year to your nest egg at no… read more…
- A Guide to 401(k) Hardship Withdrawals
A 401(k) hardship withdrawal is the action of taking money out of your workplace retirement plan early to deal with a life event that requires some money. You typically can’t withdraw money from your account until you reach age 59.5 –… read more…
- Vested: What It Means for Your Retirement Plan
While your contributions to your retirement plan belong to you from the get-go, your employer’s contributions need to vest first. Employers may follow an immediate vesting schedule, a cliff vesting schedule (where you are vested after a set number of years… read more…
- Should You Take Money From Your 401(k) to Pay Debt?
If you’ve been using a workplace retirement plan like a 401(k) — and you should be, to take advantage of compound interest and any employer match available — you may at some point find yourself looking at the stores of… read more…
- SEP IRA vs. Solo 401(k): Which Is Better?
SEP IRAs and solo 401(k)s are tax-deferred retirement savings vehicles for small business owners. They’re similar to each other but with one big difference. With a solo 401(k), a self-employed business owner can make contributions as both the employee and… read more…