- Are Roth IRA Contributions Tax Deductible? Rules and Exceptions
With a Roth IRA, you contribute after-tax dollars, so there is no tax deduction when you put money in. The benefit comes later because your investments grow tax-free and qualified withdrawals in retirement are also tax-free. This differs from traditional IRAs, which give you a tax break upfront but require you to pay taxes when… read more…
- How to Withdraw Money From Your 401(k) Before Retirement
Tapping into your retirement savings early may seem like a risky idea, but there are many reasons why you may have to take money from your 401(k) before retirement. These accounts are meant to support you in your later years, yet unexpected financial challenges can force your hand at using your funds sooner. Before doing… read more…
- Should You Roll Over Your 401(k) to an IRA or a Roth?
When you leave a job or retire, you need to decide what to do with your 401(k). If it’s a traditional 401(k), you can move it to a traditional IRA, where taxes are paid when you withdraw, or to a Roth IRA, where you pay taxes now but withdrawals in retirement are tax-free. If it’s… read more…
- How Much Should I Have in My 401(k) at Age 55?
By age 55, you’re about a decade away from retirement. Many financial experts suggest having seven to eight times your annual salary saved by this age if you want to maintain a comfortable retirement. By 55 you still have time to benefit from compounding and catch-up contributions, but not much. Knowing the benchmarks, the potential… read more…
- How Much Should I Have in My 401(k) at Age 45?
Financial planners often recommend aiming for roughly three times your annual salary in retirement savings by the time you reach 45. At the same time, your mid-forties are a turning point when compounding can still work in your favor. The decisions you make now, whether you’re on track or catching up, will affect your nest… read more…
- I’m 67 With $870k in a 401(k), $120k in an IRA and a $2,200 Social Security Check. What’s My Retirement Budget?
Deciding how much to withdraw from your retirement accounts means finding a balance between enjoying life and making your money last. Taking too little leaves you with unused savings, while taking too much risks running out of money later. Taxes also affect how much you can actually spend. To help you create a retirement budget,… read more…
- ESOP vs 401(k): Key Differences and How Each Plan Works
An Employee Stock Ownership Plan (ESOP) gives employees an ownership stake in the company. It does this at no direct cost by allocating shares of company stock to their retirement accounts. In contrast, a 401(k) allows employees to save and invest a portion of their paycheck. These plans often offer employer matching for extra savings,… read more…
- I’m 63 With $1 Million in an IRA. Should I Convert $100,000 a Year to a Roth to Avoid RMDs?
If you’re 63 years old with $1 million in a traditional IRA, you may wonder whether converting $100,000 per year to a Roth IRA makes sense. Doing so may help you avoid required minimum distributions (RMDs) later on. It may also reduce your future tax burden and give you more control over your retirement withdrawals. … read more…
- Trump 401(k): Investment Options to Include Alternative Assets
President Donald Trump is paving the way for a significant shift in retirement investing by permitting 401(k) plans to include alternative investments like private equity, real estate and digital assets. Trump’s recent executive order aims to provide 401(k) participants with greater access to diversified investment opportunities, potentially enhancing retirement outcomes. However, these alternative investments come… read more…
- Can a Couple Retire With $1 Million?
Retiring with $1 million is a common goal for couples, but how long it lasts depends on where they live and the lifestyle they want. For some, low housing costs, manageable healthcare expenses, and reliable Social Security benefits can help make $1 million last. Investment returns also influence how far the money will go. Others… read more…
- How to Collect a Pension From a Former Employer
Many people leave behind pension benefits when they change jobs, and claiming them later can feel complicated. Fortunately, with the right information and preparation, collecting your pension is usually straightforward. The process involves confirming your eligibility, tracking down your plan if it has changed hands and selecting the best payout option for your needs. Knowing… read more…
- How Much Should I Have in My 401(k) at 25?
Figuring out how much you should have in your 401(k) at 25 depends on your income, savings rate and when you started contributing. A common benchmark from financial planners is to aim for one year’s worth of salary saved by age 30, which could translate to about 50% of your annual income by 25. Factors… read more…
- I Have $500k in a Roth IRA and Will Receive $3,000 Monthly From Social Security. Can I Retire at 70?
Waiting until age 70 to retire can offer you some clear financial advantages, including maximum Social Security payments and more time for your investments to grow. But even with those benefits and a half-million-dollar nest egg, determining whether you have enough to retire at age 70 will depend on your lifestyle, health, investment strategy and… read more…
- How to Move Money From a Roth IRA into Stocks
If you have money in a Roth IRA, you may be wondering how to move some of it into stocks to maximize your investment potential. This is an important consideration. Choosing to save in a Roth IRA provides significant tax advantages. However, the way you allocate the funds within the account may have a larger… read more…
- How to Calculate the RMD for an Inherited IRA
Inheriting an individual retirement account (IRA) comes with specific tax obligations that can feel overwhelming during an already difficult time. One of the most important requirements to understand is the required minimum distribution (RMD) for an inherited IRA. This determines how much money you must withdraw each year. Unlike traditional IRAs, where distributions typically begin… read more…
- These Are Americans’ Top Questions About Retirement. Do You Know the Answers?
Many Americans are unsure how to approach retirement planning, and new data helps explain why. In Northwestern Mutual’s 2025 Planning & Progress Study,1 43% of adults said that one of their top questions is how much money they’ll need to retire comfortably. Others worry about the future of Social Security, inflation during retirement and the… read more…
- Cash Balance Plan vs. 401(k): Key Differences for Retirement
Cash balance plans and 401(k)s are both employer-sponsored retirement options, but they work differently. A cash balance plan is a type of pension that promises a set payout at retirement based on a formula, while a 401(k) depends on how much you contribute and how your investments perform. The choice between both affects your savings… read more…
- Provisional Income: What Is It and How Is It Taxed?
Your Social Security benefits may be taxable depending on your provisional income. This is calculated by adding your adjusted gross income (AGI), any tax-exempt interest and half of your Social Security benefits. The IRS compares this total to set income limits to decide if 0%, up to 50%, or up to 85% of your benefits… read more…
- Trump Obamacare Changes: Requirements and Coverage
Under the One Big Beautiful Act, sweeping reductions to Medicaid and modifications to Affordable Care Act enrollment rules have been enacted. The alterations promise to reshape federal healthcare requirements and change who qualifies for coverage. These shifts could impact millions of Americans, especially those in affordable care markets. Here’s what’s changing and how it may… read more…
- Roth 401(k) vs. After-Tax 401(k) Contributions
Contributions to Roth 401(k) accounts and after-tax contributions to regular 401(k) accounts both involve after-tax dollars, but they follow different tax and distribution rules. Roth 401(k) contributions grow tax-free and allow tax-free withdrawals of both contributions and earnings in retirement if conditions are met. After-tax 401(k) contributions, by contrast, may be withdrawn tax-free but earnings… read more…
- Can You Retire at 35 If You’ve Saved $1 Million?
The idea of retiring early with $1 million by age 35 is appealing. But, whether that is enough depends on how long you will need it to stretch your nest egg and how you plan to live. If you withdraw around 3% to 4% annually, that gives you between $30,000 and $40,000 each year. This… read more…
- Does Contributing to a 401(k) Reduce Taxable Income?
If you have a retirement account, you are probably wondering, does a 401(k) reduce taxable income? The short answer is yes, contributing to a traditional 401(k) plan does indeed reduce your taxable income for the year of contribution. When you make contributions with pre-tax dollars, the money goes into your retirement account before calculating income… read more…
- How Much Should I Have in My 401(k) at Age 60?
By age 60, retirement is no longer a distant goal, it is just around the corner. For many, it begs the question: how much should I have in my 401(k) at age 60? Many financial experts recommend having saved eight times your annual salary by this point to help support a comfortable retirement. At this… read more…
- I Have $1.2 Million in an IRA and Will Receive $2,000 Monthly From Social Security. Can I Retire at 67?
If you’re sitting on $1.2 million in a traditional IRA and expect to receive $2,000 per month from Social Security, you may be wondering if that’s enough to retire at age 67. The answer, as always, depends on several factors, such as how long you expect to live, how much you’ll spend and how you… read more…
- How Much Should I Have in My 401(k) at Age 40?
By age 40, many people begin to evaluate whether their retirement savings are on track. While there’s no single benchmark that fits everyone, national data offers a reference point. Factors like income, years in the workforce and access to retirement plans all influence how much someone may have saved by this stage. However, according to… read more…