- Can You Have a 401(k) and an IRA?
You can have a 401(k) plan and an individual retirement account (IRA) at the same time. In fact, you can contribute up to the annual limit to each account, thereby maximizing your retirement savings. However, your ability to take a… read more…
- 5 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…
- How Much Should You Contribute to Your 401(k)?
Most retirement experts recommend you contribute 10% to 15% of your income toward your 401(k) each year. The most you can contribute in 2023 is $22,500 or $30,000 if you are 50 or older (that’s an extra $7,500). Consider working with… 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…
- How Safe Harbor 401(k) Plans Work
A 401(k) plan is a widely used type of employer-sponsored retirement plan that allows employees to set aside pre-tax dollars for their retirement. Safe harbor 401(k) plans are a special type of 401(k) plan that small businesses use. Though there… read more…
- How 401(k) Plans Work: Company Matches, Tax Rules and More
Of the different kinds of employer-sponsored retirement savings plans, 401(k) plans are the most common. Indeed, an estimated 80 million Americans actively participate in defined contribution plans such as 401(k)s. But you can expect to see this number rise, thanks to… read more…
- 401(k) Tax Rules: Withdrawals, Deductions & More
If you’re building your retirement saving, 401(k) plans are a great option. These employer-sponsored plans allow you to contribute up to $22,500 in pretax money in 2023 or $20,500 in 2022. Some employers will also match some of your contributions,… read more…
- 401(k) Investments: What’s the Right Option for You?
401(k) plans are one of the most popular retirement plans in the U.S., having blown past pensions as the primary employer-sponsored plan. And unlike pensions, 401(k)s require participants to choose where to invest their savings. While the options in most 401(k)s are… read more…
- How to Roll Over Your 401(k) to a Roth IRA
Rolling over your 401(k) plan to a Roth IRA is a taxable event. You’ll have to pay income tax on your contributions, your employer-match contributions and all earnings. Depending on the size of your account, this could push you into a much higher… read more…
- 401(k) Plan Rules for Highly Compensated Employees
One of the benefits that make tax-deferred retirement accounts like 401(k) plans so attractive is their high contribution limits. This becomes especially appealing when your company offers a 401(k) employer match. However, some plans restrict highly compensated employees (HCEs) from… read more…
- How to Roll Over Your 401(k) to an IRA
There are many reasons why you may have decided to make a 401(k)-to-IRA rollover. You may have left your job for a position at a new company, you may have been laid off or you may have decided to take… read more…
- Roth IRA vs 401(k): What’s the Difference?
When it comes to saving for retirement, you have a ton of options to choose from. Do you open a traditional IRA or a open a Roth IRA? Both can help you save for retirement, but while a 401(k) is… read more…
- How to Convince Your Employer to Add 401(k) Plans
Participating in a 401(k) plan is one of the simplest ways to start planning for retirement. Unfortunately, not all employers offer this tax-advantaged savings plan. If you don’t have the opportunity to invest in a 401(k), you may need to… read more…
- IRA vs. 401(k)
In the showdown of IRA vs. 401(k), which wins? That depends on your retirement savings needs. Just because you have access to a 401(k) through work doesn’t mean you should necessarily max it out. Consider what a 401(k) and an IRA can do… read more…
- 5 Things to Know About Splitting Up a 401(k) in a Divorce
One of the most difficult aspects of ending a relationship is often figuring out how to divide your assets. While splitting up a checking or savings account may be fairly straightforward, figuring out who gets what with regard to a… read more…
- 3 Places to Save After Maxing Out Your 401(k)
Saving using your employer’s 401(k) plan is generally seen as a wise financial move in order to help you prepare for retirement. But believe it or not, it’s not your only avenue for growing a healthy retirement nest egg. If you’re… read more…
- What Is a 401(k) and How Does It Work?
A 401(k) is a common tax-advantaged retirement savings plan that’s available to employees through their employer. These accounts come in traditional and Roth variations, with each having their own tax benefits according to IRS tax laws. Because 401(k)s are integrated… read more…