401(k) Archives

The Power of 401(k)s – How to Build Wealth for Retirement.

The 401(k) plan has emerged as a cornerstone of retirement planning for many Americans. With its tax advantages and potential for employer matching, it’s no wonder that by September 2024, 401(k) plans boasted a staggering $6.3 trillion in assets, marking a twofold increase from a decade ago. Understanding the 401(k) Landscape Employers offer 401(k)s as retirement savings plans. It allows employees to save a portion of their paycheck before taxes are taken out. The benefits …

Learn How to Maximize Your 401(k) Like a Pro

It can be challenging to reach the maximum contribution limit for a 401(k). but there are ways to achieve this goal. Many individuals prefer 401(k) accounts over IRAs for a specific reason: the potential for receiving employer matching contributions, which can result in ‘free money.’ Additionally, 401(k) plans typically offer higher annual contribution limits compared to IRAs, allowing you to save more for retirement in a tax-advantaged manner. Contribution limits For the current year, 401(k) …

IRS Shifts Gear on New Roth 401(k) Rule Implementation – What You Need to Know

Higher-income earners affected by updated catch-up contribution regulations for Roth 401(k) accounts can now breathe a sigh of relief thanks to the new measure introduced by the IRS. Here is what you should be aware of regarding this development. There has been recent attention on the proposed changes to regulations regarding catch-up contributions in 401(k) retirement plans. Originally scheduled to take effect in 2024, these revisions require individuals with higher incomes to make catch-up contributions …

Retirement Crisis Alert: Why Millions Are Raiding Their 401(k) Early

Recent findings from the Bank of America Q2 2024 Participant Pulse Report have highlighted a concerning trend: many Americans are making early withdrawals from their retirement savings. The data reveals a 36% year-over-year spike in 401(k) participants opting for hardships distribution. This surge is attributed to the current economic climate, marked by escalating inflation rates and living costs. The Debt Dilemma: A Nation’s Struggle The economic pressures are palpable. With a staggering 60% of the …

No 401(k)? No Problem; Here are Some Alternative Ways to Secure Your Future

When a 401(k) isn’t available, multiple alternatives exist for preparing financially for retirement. The options include individual retirement accounts, brokerage accounts, annuities, real estate, and small business investments. Understanding the purpose, structure, and risks of each option is crucial. Although 401(k)s and 403(b)s are commonly used employer-sponsored retirement plans, they are not the sole pathways toward securing your retirement. Discover various strategies to effectively work towards your retirement savings objectives without relying on a 401(k). …

The Looming 401(k) Catastrophe No One’s Talking About

Recent data reveals an alarming trend: more Americans are prematurely tapping into their retirement savings. In the second quarter, there was a 12% increase in hardship withdrawals from 401(k) accounts compared to the first quarter. This figure has surged by 36% year over year, as per a survey conducted by Bank of America. Borrowing from Retirement Funds Not only are withdrawals on the rise, but borrowing from these retirement accounts is also increasing. The data …

6 Critical Factors to Weigh Before Tapping Your 401(k) Funds

Deciding to cash out a 401(k) can be a difficult and emotional process due to the various factors involved. On the one hand, immediate access to a substantial sum of money can be enticing, especially when faced with pressing financial needs or unexpected emergencies. It might seem like a lifeline, providing the means to cover mounting bills, medical expenses, or crucial debts, alleviating immediate financial stress. Moreover, if one is facing job loss or a …

Find Out Why Fortune 500 Companies Want A 401(k) Rule Delay And What It Means To You

The forthcoming changes to 401(k) catch-up contributions for 2024 have stirred up a lot of confusion and concern among older adults planning their retirement. During the previous year, the retirement account regulations underwent significant amendments due to the SECURE 2.0 Act. While some of these changes have already taken effect, they have not been without their challenges, leading to uncertainty and apprehension among individuals seeking clarity on crucial retirement planning aspects, such as required minimum …

401(k) Rollover Warning: 4 Things You Must Consider

Retiring and navigating the complexities of a lifetime’s worth of retirement savings is an endeavor of paramount importance. Numerous individuals grapple with a critical and weighty question: “How should one wisely handle the diligently amassed funds residing within their employer’s 401(k) plan?” Undoubtedly, the decisions made at this juncture carry significant ramifications, making it imperative to tread cautiously and consider key factors to safeguard your financial future. Below are the top four factors that warrant …

Three Effective Strategies for Organizing Your Retirement Accounts

Getting your retirement accounts organized and optimized is crucial for building a sustainable and secure financial future. Despite the significance of streamlining your investments and gaining control over your money, many Americans tend to prioritize amassing a large retirement fund rather than organizing it effectively. However, without proper organization, achieving the retirement you desire can become challenging. If you’re like most pre-retirees, you likely have retirement accounts scattered across various employers, along with your own …