A 401k is a company/employer sponsored retirement plan that allows workers to take out a portion of money from their daily paycheques, store it on a retirement plan account and earn interest tax-deferred. Tax-deferred means this saved income is not taxable until you withdraw it at the age of 65 or more. A 401k retirement …
If you are nearing your retirement or changing your employers, should you take the 401k cash distribution and roll it over to an IRA (individual retirement account)? Apart from that, there is another attractive option, and it is making a lump sum rollover to your company’s stock. Lump sum rollovers to a company’s stock plan …
A study carried out by 2 Washington DC state organizations revealed that 401k participants who contributed payments towards their employer sponsored 401k retirement plans over the past 7 years have seen growth rates of over 50%. This is inspite of the tech boom bust of 2000 and market declines in 2002. Here is some data …
401k retirement plans are meant to grow tax-deferred continuously (without any withdrawals) up until you hit retirement age. However, we don’t live in a financially perfect world. Things may come up in your life that require you to have immediate emergency funds for example death of spouse, big medical bill, etc. In such an event, …
If you read our article on benefits of a 401k plan, we said: “You have full control over your retirement savings. You can choose to invest in stocks, bonds, short term money market instruments, etc. This is unlike a pension plan where you are limited in choosing what type of investments best suit you.” In …
If your loved one passes away and leaves behind a 401k retirement savings balance, and if you are the legal beneficiary of that 401k account, there are certain things you need to know in order to properly manage that money. This is known as 401k tax planning. Treatment of 401k Inheritance for Taxes Upon the …