When you leave an employer for non-retirement reasons, for a new job, or just to be on your own, you have four options for your 401(k) plan: Roll the assets into an individual retirement account (IRA)...
Tag: 401k
Roth IRA vs. 401(k): What’s the Difference?
Roth IRA vs. 401(k): An Overview Both Roth IRAs and 401(k)s are popular tax-advantaged retirement savings accounts that allow your savings to grow tax free. However, they differ where tax treatment, i...
The Rules of a 401(k) Retirement Plan
Since its inception in 1978, the 401(k) plan has grown to become the most popular type of employer-sponsored retirement plan in America. Millions of workers depend on the money they invest in these pl...
At This Size, Your Retirement Portfolio Is Too Big For Mutual Funds
getty You’ve learned why it’s important to avoid investment products once you enter your retirement. If you’re lucky, you can, and maybe you should, begin transitioning your investments to individual ...
You May Have Old 401(k) Accounts. Here’s How to Find Them
SmartAsset: How to Find Old 401(k) Accounts It is not uncommon to lose track of an old 401(k) account after you change jobs. It’s easy for people to assume their 401(k) contributions continue when the...
I am 60 and plan to retire in March. I have $113K in my 401(k) and no other savings, but I will get an early retirement package of 9 months salary. Should I get a pro to help me?
Question: I am accepting an early retirement offer from my long-term employer of 24 years. In March of 2023, I will retire and receive nine months of salary as well as my benefits. During this time I ...
Investors who did this one thing survived the markets in 2022
Forget inflation. Forget oil prices. Forget Vladimir Putin’s invasion of Ukraine. Forget layoffs in the tech sector. Forget the yield curve. When I sat down to write about what worked for investors in...
Fund a Roth 401(k) if You’re in a Low Tax Bracket. Here’s Why.
If you’re not earning big bucks this year, consider saving money in a Roth 401(k) instead of a traditional 401(k). Roth contributions make sense when your current tax rate is less than your rate in re...
What’s In The Secure 2.0 Act? What The Government Spending Bill Means For Investors And Retirement
| Getty Images Key takeaways SECURE 2.0 comes on the heels of the original SECURE Act passed three years ago, expanding retirement account types and eligibility. There are new rules for those approach...
Congress just approved 401(k) and IRA changes that affect workers across generations. Here are the key points to know
Saving for retirement just got a little bit easier. Congress approved big changes that can help 401(k) and IRA savers put a little more money away for their futures. A series of new laws—known collect...
Thrift Savings vs. 401(k) Plans
Thrift savings plans (TSPs) and 401(k) accounts are two vehicles used to save and invest for retirement. Both operate similarly in many ways, including tax advantages, caps on contributions and requir...
Yes, You Can Benefit From Rising Rates—Here’s How
Getty Images The Federal Reserve finished the year with yet another interest rate hike. If inflation slows as expected, analysts still expect further increases of at least 75 basis points. You know ho...
401(k) auto-enrollment and other big changes to retirement plans in omnibus bill for 2023
A package of proposed changes to help Americans save more for retirement could soon be the law. The changes, part of the Secure Act 2.0, are included in the sweeping end-of-year spending bill that law...
Big Changes to 401(k) Retirement Plans Move Ahead in Congress
Listen to article (2 minutes) Congress is on the verge of passing a bill that aims to help Americans save more for retirement and leave their retirement savings untouched and untaxed for longer. The b...
401(k) Contribution Limits for 2022 vs. 2023
If your employer offers a 401(k) plan, it can be one of the easiest and most effective ways to save for your retirement. But while a major advantage of 401(k) plans is that they let you put a portion ...
401(k) and IRA Contributions: You Can Do Both
Do you have a 401(k) plan through work? You can still contribute to a Roth IRA (individual retirement account) and/or traditional IRA as long as you meet the IRA’s eligibility requirements. You ...
How Do Federal Reserve Interest Rate Hikes Hurt Your Retirement Savings?
getty The Federal Reserve just raised interest rates again and continues to take an assertive stand against historically high inflation numbers. What’s that doing to your investment portfolio? “Intere...
This U.S. Senator discloses vast Bitcoin holdings while talking of 401k plans
Senator Cynthia Lummis believed that everyone should make Bitcoin part of their retirement savings However, BTC’s volatility made the plan contentious Cynthia Lummis, Wyoming’s United States Senator, ...
You May Have Unclaimed 401(k) Benefits. Here’s How to Find Them
SmartAsset: What to Do With an Orphaned 401(k) U.S. workers have left more than $1 trillion in 401(k)s with former employers. That might not be all bad, especially if those plans are doing well. Howev...
Strategies for Your Roth 401(k)
More and more companies today are offering a Roth 401(k) option as part of their retirement plans. If your employer is among them, and you’ve decided to go the Roth route, here are six ways to maximiz...
Can you still retire on $1 million? That’s what today’s millionaires want to know.
OK, so a million dollars isn’t what it used to be. That’s the worry among a surprising number of America’s millionaires. So, at least, reports money-management giant Natixis, which owns bond shop Loom...
I’ve Finally Retired! What Happens With My 401(k) Now?
After retirement you can start withdrawing the money you have accumulated over the years in your 401(k). However, a number of rules govern retirees’ 401(k) distributions. For instance, in most cases t...
What to do with your 401(k) plan when you quit or retire to make the most of your savings
When moving from one employer to another or leaving the workforce entirely for retirement, you may have an employer-sponsored 401(k) account that needs to be moved as well. There are several options f...
Tax deadlines for retirees: do this before the year ends
It’s the most wonderful time of the year for holiday cheer – and last-minute tax tips. Retirement Tip of the Week: As we approach the new year, look for tax-advantageous strategies to cut your tax bi...
Should I Withdraw From My 401(k) to Buy a Home?
SmartAsset: Making a 401(k) Withdrawal for a Home Purchase Buying a home is an important financial milestone. In fact, it’s most likely one of the largest purchases you’ll make in your lifetime. You m...
Should I Use An HSA as a Backup for My 401(k)?
HSA vs. 401(k) Two of the most common vehicles for building savings are the 401(k) and the health savings account, or HSA. While the HSA isn’t a traditional retirement account, at least not formally, ...
Hardship withdrawals from 401(k)s reach ‘concerning’ all-time high, Vanguard says
Amid stubbornly high inflation, a record-breaking share of Americans are turning their 401(k) accounts into emergency piggy banks, according to Vanguard. Dissecting data from a sample of the approxima...
Should You Pause 401(k) Contributions in a Bear Market? Morningstar Compares Alternatives
piggy-bank-on-lifebuoy-3d-render-SmartAsset Morningstar recently compared the numbers on different scenarios for investors who may be thinking of pausing their 401(k) contributions. The result was not...
Can You Have Both a 401(k) and an IRA?
The quick answer is yes, you can have both a 401(k) and an individual retirement account (IRA) at the same time. Actually, it is quite common to have both types of accounts. These plans share similari...
This ‘crazy’ retirement portfolio has just beaten Wall Street for 50 years
You could call it crazy. You could call it genius. Or maybe you could call it a little of both. We’re talking about a simple portfolio that absolutely anyone could follow in their own 401(k) or IRA or...