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401k

Converting an Inherited 401(k) to Roth

Things to consider with an inherited 401(k) plan – such as, you can convert the plan to a Roth IRA, enjoying tax-free withdrawals afterward.

Required Minimum Distributions for IRAs and 401(k)s

There are differences in how Required Minimum Distributions are handled between an IRA and a 401(k). Here’s your primer.

401(k) – Good For Many, But Not Necessarily the Employee

The 401(k) plan is generally seen as a good thing – promoting retirement savings and providing incentives for saving. But it’s not all good.

401k Distributions Due to Coronavirus (CRDs)

Here’s all you need to know about 401k distributions due to coronavirus. This includes the penalty abatement, tax payment, and payback provisions.

Required Minimum Distributions for 2020

How are required minimum distributions for 2020 changed by the CARES Act? There are a few “gotchas” to consider, depending on your situation.

Beyond 401(k) and IRA

You’re contributing as much as you’re allowed to a 401(k) or other employer-sponsored retirement plan. If your income allows it, you’re also contributing the maximum annual amount to your Roth or traditional IRA. But you still want to set aside more money beyond 401(k) and IRA, to make sure your retirement is everything you hoped for. What options do you have? Here are some things to consider… Before moving beyond – are you really maxing our your 401(k) and IRA? IRAs and employer-sponsored retirement plans like 401(k)s have some real advantages when it comes to saving for your retirement. So, before you go any further, make sure you’re really contributing all you can. In 2020, most individuals can contribute up to $19,500 to a 401(k) plan, and up to $6,000 to a traditional or Roth IRA (subject to income limitations). If you’re age 50 or better, though, you can make […]

16 Ways to Withdraw Money From Your 401k Without Penalty

There are several ways you can withdraw money from your 401k without penalty.

SECURE Act RMD Rules

With the passage of the SECURE Act, many changes have come into effect for retirement accounts. This article covers the SECURE Act RMD rules.

Inherited 401k plan

Distributions for an inherited 401k plan can be complicated, because there are many factors to consider – your age, the age of the original owner, etc.

Don’t Leave Money On The Table!

Many individuals are offered an employer-sponsored savings plan though work such as a 401(k) or 403(b). Employers who offer these plans may provide a company match. This means that the employer will add money to the employee’s account, if the employee saves a certain percentage of income. Some employers will even provide money even if the employee is not saving. If you’re employer offers a match on your contributions, take full advantage of it. Don’t leave money on the table! This is free money – and it’s unwise to not take it. Let’s look at an example. Sam and Betty (both age 45) have a 401(k) and their employer offers a 50% match on employee contributions up to 5% of their salary. They both earn $80,000 annually. Sam decides to save 1% of his salary and Betty decides to save the maximum she can for 2019 of $19,000. Since the […]

You’re Not (necessarily) In Control

You may think you’ve got control over your 401k account. But it’s not necessarily so – your employer can make changes that affect your results.

Roth or Pre-Tax 401(k)?

As an employee of a company you may have access to a 401(k). A 401(k) is an employer-sponsored (offered) retirement plan that allows you to save money for retirement. Sometimes your employer may provide a match based on a percentage of your contributions. Your employer may give you the option of saving to a pre-tax account or a Roth account. A pre-tax contribution means that your contributions are made to your account before federal and state taxes are applied to your paycheck. A Roth contribution means that taxes are taken first, then the contribution goes to your account. This is also known as an after-tax contribution. If you make pre-tax contributions, you avoid tax now, but then are taxed when withdrawals are made in retirement. If you make Roth contributions now, you’re taxed today, but withdrawals in retirement are tax-free. It can make a lot of sense to contribute to […]

Problems and (proposed) Solutions for 401k Plan

The 401k plan takes the blame much of the time for the problems individual investors are facing. But maybe adjusting the 401k plan is the real

Not So Fast! 9 Special Considerations Before Rolling Over Your 401(k)

If you are leaving an employer you may think it’s a no-brainer to rollover your 401k to an IRA or a new employer plan. Not so.

Converting Directly From a 401(k) to a Roth IRA

Converting directly from a 401k to a Roth IRA used to be a two-step process. But since 2008, this type of conversion has been very straightforward.

Early Withdrawal from Retirement Plans

If you’re considering an early withdrawal from your retirement plan, there are tax consequences that you need to be aware of.

New Deadline for Rollover of 401k Loan Distributions

TCJA allows an extended period of time to rollover 401k loan distributions. This will help folks who have left a job with outstanding 401k loans

Your 401k and IRA in 2018

Recently, the IRS just announced the contribution limits for 401k plans (including 403b and 457 plans) as well as IRAs. Additionally, the IRS also announced changes to the income phase-outs for traditional IRA deductibility and Roth IRA eligibility. Let’s start with the 401k plans. For 2018, the IRS increased the contribution limits to $18,500, up $500 from $18,000 last year. The catch-up contribution for those age 50 or over remains unchanged at $6,000. $500 may not seem like much, but think of it this way – you get to give yourself a $500 raise! For those interested in maxing out their 401k plans in 2018, here’s the breakdown depending on whether you’re paid monthly, 24 weeks per year or 26 weeks per year. If you’re paid monthly, the contribution is $1,541.66. This brings you just eight cents under the $18,500 max annually. If you’re paid 24 weeks per year, then […]