401(k) Archives

IRS Drops Bombshell on High Earners’ Retirement Plans – Must-Read News

High-earning individuals will need to adjust their approach to 401(k) catch-up contributions, as there will be a change in how they work starting in 2024. Currently, 401(k) plans offer attractive benefits for retirement savings due to their employer-sponsored nature, hands-off management, and potential to lower taxable income. Additionally, their relatively high annual contribution limits make them an effective tool for building retirement income. For tax year 2024, the maximum contribution limit for a 401(k) is …

Retirees Rejoice: A Foolproof Guide to Outsmarting the IRS with Diversified Withdrawals

Retirement planning is a complex, multi-dimensional process that demands thoughtful planning and strategic decision-making. It’s not just about how much you accumulate during your working years but also how you manage those funds during retirement. Effective saving and strategic withdrawal from various accounts is the key to a financially secure retirement. Traditional Approach to Retirement Withdrawals The traditional wisdom for retirement account withdrawals suggests a sequential approach, starting with taxable accounts, progressing to tax-deferred accounts …

Don’t Gamble with Your Golden Years: Discover the Rollercoaster Ride of an IRA Rollover

Determining whether to roll over your retirement plan to an Individual Retirement Account (IRA) or keep it in your company plan when you retire requires careful consideration. There is no one-size-fits-all answer, as it depends on individual circumstances. Here are some factors to consider: Here’s why you would want to keep your company plan: 1. Early Retirement and Financial Needs: If you retire between 55 and 59½ and require funds from your retirement plan to …

The Retirement Game-Changers You’ve Been Ignoring: Move Beyond 401(k) and IRA Now

When planning for retirement, there’s more to consider than relying on traditional retirement savings accounts. Each person has a unique vision of retirement, and no single approach can fulfill all goals. Early retirement serves as a good example. Among millennial workers, 52% express a desire to bid farewell to work early. However, it’s important to note that conventional retirement plans such as 401(k)s and individual retirement accounts (IRAs) impose penalties on withdrawals made before age …

The Hidden Pitfalls of Maxing Out Your 401(k): Why It Might Not Be Your Best Move

In the absence of dwindling pension plans, 401(k) savings plans are generally considered the most favorable retirement option for the average investor.

Optimizing Your Retirement Accounts: A Mid-Year Guide

We delve into the optimal strategies for structuring retirement accounts, starting from the basics of diversification to leveraging the benefits of Roth accounts and Health Savings Accounts.

Maximizing Employer 401(k) Matches: A Graduate’s Guide

New to personal finance? Uncover the best strategies to maximize your employer’s 401(k) match in our comprehensive guide. Start your journey towards secure retirement savings today.

Smart Tax Planning: Top 5 Tips for Retirees

Smart Tax Planning: Top 5 Tips for Retirees is a comprehensive guide on effective tax strategies for retirees. The blog post covers understanding taxation on retirement income, tax-efficient withdrawal strategies, the use of deductions and credits, as well as estate planning.

How A U.S. Default Could Impact Your Financial Life

The failure to increase the debt limit, which determines the amount the US government can borrow to meet its financial obligations, could have far-reaching consequences for various aspects of American life. It could impact mortgage rates, paychecks for federal employees, and many other financial matters.

Power up Roth IRA: Smart Strategies for Retirees

Uncover smart strategies for maximizing the growth of your Roth IRA without compromising your cost of living adjustment (COLA). Learn how diversification, dividend-paying stocks, bond ladders, Roth conversions, and professional advice can bolster your retirement savings.