- Is My Spouse Entitled to My Pension in a Divorce?
A divorce is an unfortunate time in anyone’s life, as it signifies the end of a likely long-term relationship and marriage. However, it’s important to understand the financial ramifications of a divorce as you’re going through one. So if you’re… read more…
- What’s the Difference Between 401(a) and 403(b) Plans?
If you work for a public school or some kind of non-profit organization, you may have access to a 401(a) or a 403(b) plan. Both are retirement savings vehicles that offer major tax breaks. However, they are structured a bit… read more…
- Can You Lose a Vested Pension?
Once a pension has vested, you should be entitled to keep those funds, even if you’re fired. However, you aren’t always entitled to all the money in your pension fund. In some cases, you might lose some, or even all,… read more…
- What Happens to Your Pension When You Die?
If you worked in a job with a pension, this means you will receive ongoing benefits once you retire. A critical part of estate planning, then, will be figuring out what happens to that money when you die. The answer… read more…
- How to Avoid Taxes on Lump Sum Pension Payout
When your pension matures, there are multiple distribution options that you can choose from. Unfortunately, many of these distribution methods result in a tax liability that reduces your payout. However, you can avoid taxes on a lump sum by rolling… read more…
- Pension vs. Social Security: Key Differences
Most retired workers depend on multiple streams of income during their retirement. Two of the most common such income streams are Social Security and pensions. If we look at pension vs. Social Security income, we find significant differences. Retired workers need to understand the key differences between the two programs. They are funded, structured and… read more…
- What Is Pension Risk Transfer?
A pension risk transfer (PRT) occurs when a company ends its pension program. Usually in the process it tries to stop paying its existing benefits under pension programs for past and present employees. While it’s illegal for companies to unilaterally rescind pensions that employees have already earned (whether current workers or retirees), there are several… read more…
- How to Invest a Lump Sum Pension Payout
A pension plan promises to pay a defined benefit for the length of an employee’s retirement. Depending on your financial circumstances, you may consider taking a lump sum instead of a lifetime monthly payment. Let’s take a closer look at… read more…
- 403(b) Loans: Can You Borrow From Your Account?
When an unexpected expense comes up, you might consider borrowing from your retirement account. Most qualified retirement plans, such as 401(k) and 403(b) plans, offer employees the option to borrow from their own retirement savings and repay that amount plus interest over time. Borrowing from a retirement account is a big decision, though, potentially impacting… read more…
- Investing in Cryptocurrency With a Self-Directed IRA
Cryptocurrency can add diversification to your portfolio. Your brokerage may allow you to trade digital currencies through a taxable account but you could also use a self-directed IRA to invest in crypto for retirement. A self-directed IRA doesn’t follow the same rules as a traditional or Roth IRA. If you’re considering a self-directed IRA for… read more…
- Who Qualifies for a Widow’s Pension?
Surviving spouses are not the only ones who can qualify for a widow’s pension under the Social Security Act of 1935. When we dig down into the details, there are others who can receive it besides the widow or widower. Other parties close to the deceased may also have a claim. There are specific rules… read more…
- How Does Government Pension Offset work?
One of the most valuable perks of working for the government is the pension. However, your government pension may reduce or eliminate survivor or disability benefits from Social Security in certain situations due to what’s called Government Pension Offset. These unexpected cuts can cause financial concerns when your retirement plan assumed that you’d receive both… read more…
- Pension Protection Act of 2006
The Pension Protection Act (PPA) of 2006 was signed by President George W. Bush on August 17, 2006. The PPA is the most significant legislation having to do with pension plans since the Employee Retirement Income Security Act of 1974 (ERISA). The PPA looks to strengthen the traditional private pension system by offering incentives to… read more…
- What Are 414(h) Plans and How Do They Work?
A 401(k) is the most common type of employer-sponsored retirement plan, but certain employees may have access to a 414(h) plan instead. A 414(h) plan, also called a pick-up plan, offers people who hold government jobs a tax-advantaged way to… read more…
- What Is a Spousal IRA?
We all know that saving for retirement is a good thing. We often think of retirement savings in terms of a percentage of our paychecks, but what about when someone doesn’t work? The IRS has a solution that allows a… read more…
- What Is the Pension Benefit Guaranty Corporation (PBGC)?
From a retiree’s perspective, the biggest risk with defined benefit retirement is that you are at the mercy of your former employer. That could put your retirement at risk if the employer or its pension fund runs into trouble. The… read more…
- Types of Pension Payouts: Lump Sum vs. Monthly
Pension plans are becoming less and less common in the private sector, though the public sector still uses them regularly. If you have a pension, you’ll likely have to make a decision whether to opt for monthly pension payouts or one lump sum payment. Both options have their pros and cons, and there are several… read more…
- What Is a Non-Deductible IRA? Definition and Contribution Limits
A nondeductible IRA is a retirement plan you fund with after-tax dollars. You can’t deduct contributions from your income taxes as you would with a traditional IRA. However, your non-deductible contributions grow tax-free. Many people turn to these options because… read more…
- Hawaii Retirement System
A retirement system is a network of pension plans that states use to help public employees save for retirement. Each state has at least one retirement system and an organization that administers the program. The systems vary greatly from state… read more…
- Maine Retirement System
A retirement system is a pension plan that a state or other local government uses to help its public employees save for retirement. The systems requires members to contribute during their careers so that when they retire, there is a… read more…
- Nevada Retirement System
Saving for retirement is certainly a financial priority for everyone. For Nevada state employees, it’s comforting to know that your retirement savings are automatic. Once you start working for the state, you’ll begin making contributions to your pension through the Nevada retirement systems. Most employees are covered by the Public Employees’ Retirement System of Nevada… read more…
- Georgia Retirement System
The Employees Retirement System of Georgia (ERSGA) provides a range of pension plans that mostly come with lengthy eligibility requirements. While each of its systems and plans serve different employees, some systems consist of more components than others. In addition,… read more…
- Michigan Retirement System
Though Michigan’s pension fund is not one of the 10-15 largest in the country, that doesn’t stop it from offering its employees an array of retirement plans from which to select. The state of Michigan’s Office of Retirement Services (ORS)… read more…
- Oregon Retirement System
Each state has its own retirement system. This is an organization that helps state and local employees save for retirement. The individual pension plans that these organizations administer (also called retirement systems) vary in size and complexity by state. Some… read more…
- Missouri Retirement System
The state retirement system of Missouri covers the multiple types of employees working on behalf of the state. The Missouri State Employees’ Retirement System (MOSERS) was established in 1957. Under the management of a board of trustees, it currently provides retirement benefits to most state public employees. MOSERS delivers those retirement benefits through pension trust funds.… read more…