401k rollover to annuity When you leave a job where you had a 401(k) it’s important to understand what your options are for rolling over your tax-advantaged plan. Cashing out is another option but can result in significant taxes. Many choose to roll their money into a new 401(k) or an IRA, but an annuity […]
The total average 401(k) savings rate reached a record high of 14.2%, Fidelity said. – Getty Images/iStockphoto The number of 401(k) millionaires surged 43% from a year ago, boosted by market gains and steady contributions. But those millionaire success stories were an average of 26 years in the making, according to Fidelity Investments. The first […]
It’s a wise move to plan ahead for the taxes you’ll pay on retirement income, including eventual required minimum distributions (RMDs). Instead of waiting until the RMD deadline to start thinking about tax planning, starting the process at age 60 gives you the luxury of time to weigh all of your options and adjust your […]
shapecharge / Getty Images In an effort to be prepared for the increasingly higher costs of retirement, it’s possible to save too much money in your 401(k) account, thus tying up liquid funds. Learn More: Retirement Savings: I Lost $400K in a Roth IRA Check Out: 4 Genius Things All Wealthy People Do With Their […]
Here’s how much the average American has in their 401(k) — in their 40s, 50s, 60s and 70s. How do you compare? Retirement can seem far away when you’re starting your working life. But, by the time you hit 40 you’re officially middle aged and suddenly the day you’ll leave work for good doesn’t seem […]
“He thinks I could use the money from his 401(k) to either buy a house or use some as a down payment.” (Photo subjects are models.) – Getty Images/iStockphoto Dear Quentin, My husband no longer wants to be married to me. I am 61 and he is 51. In 2006, I left a job and […]
Dave Ramsey, a vocal advocate for living debt-free, recently addressed the financial concerns of Aaron from Richmond, Virginia, during a call on his show. Aaron and his wife, currently focused on Ramsey’s Baby Step two — paying off all debt — faced a dilemma about pausing their 401(k) contributions due to an unexpected tax bill. […]
DNY59 / Getty Images/iStockphoto Gone are the days when a person got hired by a company and spent their entire career there. Instead, people are moving from company to company for many different reasons. For some, it’s because they’re looking for a change in career path. For others, wage stagnation is causing them to look […]
Was The 401(k) A Mistake?’ Here’s What People On Social Media Think A New York Times (NYT) article recently sparked a discussion on Reddit about whether the shift from traditional pensions to 401(k) plans was a mistake. The debate captured a range of opinions reflecting the complexities of retirement savings in the U.S. The Reddit […]
The 401(k) has become king of the retirement industry, knocking down its competition in pensions and overshadowing the contribution limits of the IRA — but it could use some improvement. In the last 40 years, the 401(k) plan has emerged as the most common way for employers to offer a retirement benefit to their employees. […]
meshaphoto / Getty Images Figuring out how to balance and strategize the right kinds of retirement accounts to bring you the best tax benefits and income in retirement can be challenging. Be Aware: Here’s Exactly How Much Savings You Need To Retire in Your State Find Out: 5 Unusual Ways To Make Extra Money (That […]
With retirement planning and taxes, there are often two ways to look at a question: First, can you do something, and then, should you do it? For example, let’s say we have a household planning for retirement. Would it be wise for them to convert their 401(k) into a Roth IRA 20% at a time […]