401(k) - The American Retiree

Crucial Facts to Understand About 401(k) Hardship Loans

If you are experiencing an “immediate and substantial financial need,” the IRS may grant permission for a 401(k) hardship withdrawal. When facing financial difficulties, you may have contemplated tapping into your 401(k) plan for assistance. While there are situations in which current employees can make 401(k) withdrawals, certain conditions must be met to avoid penalties associated with early withdrawals from your retirement account. To gain insight into the process of obtaining a 401(k) hardship withdrawal, …

IRS Unveils Surprising 401K and IRA Contribution Limits for 2024

As 2024 unfolds, retirees and soon-to-be retirees must stay abreast of the significant alterations in retirement account contributions announced by the Internal Revenue Service (IRS). These modifications are poised to be pivotal in shaping retirement savings strategies, especially concerning 401(k) plans and Individual Retirement Accounts (IRAs). Increased Contribution Limits for 401(k) Plans A critical development for 2024 is the elevation in the employee contribution limit for 401(k) plans. You’re now empowered to contribute up to …

Struggling to max out your 401(k) – Try this instead

For many workers, the idea of maxing out their 401(k) contributions can seem like an unattainable goal. With the generous annual contribution limits and the need to prioritize living expenses, it’s no wonder that most individuals fall short of reaching the maximum allowable amount. There’s no need to fret. A more realistic alternative exists that can still help you maximize your retirement savings. Rather than aiming to reach the maximum contribution limit, experts suggest focusing …

How much should you be contributing to your 401(k) in 2024

As we enter the new year, many 401(k) plan savers are wondering how much they should contribute to their retirement plan in 2024. Although the answer depends on individual circumstances, there are specific steps that can be taken to optimize contributions and maximize retirement savings. First and foremost, it’s important to be aware of the 2024 contribution limits set by law. The cap on employee elective deferrals for 401(k) plans is $23,000, with an additional …

Your IRA and the Bankruptcy Shield: What You Need to Know

Since 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) has provided substantial protection for individual retirement accounts (IRAs). This law has been a positive step towards safeguarding people’s retirement savings. Different types of IRAs offer different types of protection. For instance, traditional IRAs and Roth IRAs are currently protected up to a value of over $1.5 million. Meanwhile, SEP IRAs, SIMPLE IRAs, and most rollover IRAs enjoy complete protection from creditors in bankruptcy, …

Employee Benefits: The Surprising Benefits Beyond Retirement You Can’t Afford to Overlook

Inflationary pressures have begun to manifest themselves within the workplace, extending beyond the mere demand for salary increases. Many employees are now turning to their employers for assistance in grappling with the escalating cost of living, resulting in a transformation of the types of benefits both sought after and provided. While conventional retirement plans and health/dental insurance continue to serve as the fundamental pillars of corporate benefits, assisting employees in achieving their long-term financial aspirations, …

How Safe Is Your Retirement in a World at War? The Startling Truth Revealed

Tensions in Ukraine and Israel have raised significant concerns about the potential for widespread conflict. The situation in Ukraine, particularly with Russia’s actions in Crimea and the Eastern regions, has been a flashpoint for East-West tensions. Meanwhile, Israel’s longstanding conflicts with neighboring entities, especially regarding the Palestinian territories, exploded last month. The intersection of regional and global powers in these disputes, coupled with the intricate web of alliances and interests, can potentially escalate local conflicts …

401(k) Contribution: How Much Is Enough?

When embarking on a new job and enrolling in your company’s 401(k) plan, you’ll face a pivotal decision – how much to contribute to this account. Although it may initially seem straightforward, this choice significantly influences various aspects of your financial life, including the deductions from your paychecks, your annual income tax bill, and the nest egg you’ll amass for your retirement years. Here’s a guide to help you determine the ideal amount to save …

Retirees Avoid Costly RMD Mistakes in 2024

The recent modifications to the required minimum distributions (RMDs) from retirement accounts have introduced a layer of complexity and uncertainty, particularly for retirees. Over the past four years, Congress has enacted two significant changes to the RMD regulations, leaving financial advisors with the task of clarifying these changes to their clients. As this tax year approaches its end, there is less than a quarter left, and financial advisors are diligently working to provide clarity and …

Is Your 401(k) Underperforming? Find Out Why and How to Fix It Today

A well-performing 401(k) is vital when it comes to securing a comfortable retirement. It is important to ensure that your 401(k) is performing well to have a stress-free and relaxed retirement life. Employer-sponsored retirement plan offers tax advantages and the potential for growth, making it an invaluable tool for future financial stability. However, not all 401(k) plans are created equal, and it’s crucial to regularly assess their performance to ensure they are on track. Here’s …