- 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…
- 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…
- 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…
- 6 Disadvantages of Saving With a 401(k) Plan
For most, the advantages of 401(k) plans outweigh the disadvantages. But there are some people who would benefit from steering their retirement savings to other investment vehicles. Could you be one of them? This roundup of 401(k) disadvantages will help… read more…
- 401(k) Loans vs. Hardship Withdrawals
For the most part, the money you place in your retirement accounts is untouchable during your working years. If you follow these rules, the IRS affords you various tax benefits for saving for retirement. However, there may come a time when… read more…
- SIMPLE IRA vs. SIMPLE 401(k): What’s the Difference?
If you work for a small business (one with 100 or fewer employees) you may not think much of your retirement savings options. In fact, a recent study from LIMRA found that only 42% of small businesses offered retirement benefits.… read more…
- Is a Solo 401(k) a Good Choice When You’re Self-Employed?
The sole proprietor 401(k) is a retirement plan designed for small-business owners who don’t have any employees or only a spouse as their sole employee. It allows participants to invest more money than they could through a traditional 401(k). As… read more…
- How to Make Withdrawals From Your 401(k)
Regardless of when you do it, making a withdrawal from your 401(k) requires you to follow a handful of rules. That’s because you’re tapping your tax-deferred retirement savings, which means the IRS keeps a close eye on it. During retirement, these withdrawals are also known as distributions. Perhaps the most important age when it comes… read more…
- What Is a Roth 401(k)?
A Roth 401(k) brings many of the benefits of a traditional employer-sponsored 401(k) retirement savings vehicle. But with a traditional 401(k), you save for retirement with pre-tax dollars and write off your contributions from your taxes. With a Roth 401(k),… read more…
- A Guide to SIMPLE 401(k) Plans
A Savings Incentive Match Plan for Employees, or SIMPLE plan, can come in the form of an IRA or a 401(k). While both SIMPLE plans are a lot alike, the 401(k) plan is a little easier to understand and put… read more…
- The Many Benefits of a 401(k) Plan
The main benefit of 401(k) plans is that they allow retirement savings to grow tax deferred. But there are more advantages, especially in comparison to individual retirement accounts (IRAs). Read on for these less-known 401(k) benefits – plus for info about… read more…
- 401(k) Withdrawal Age and Early Withdrawal Rules
Once you reach age 59.5, you may withdraw money from your 401(k) penalty-free. If you tap into it beforehand, you may face a 10% penalty tax on the withdrawal in addition to income tax that you’d owe on any type… read more…
- Roth 401(k) vs. Roth IRA: What Are the Differences?
Roth IRAs and Roth 401(k)s are retirement savings vehicles that allow you to entirely avoid taxes on your investment earnings when you withdraw in retirement. One may be better for you depending on your needs, so understanding the pros and cons of each can help you decide. Ultimately, while they work very similarly from a… read more…