This 401k glossary covers terms that are deemed important for any 401k retirement saver to know. Examples of glossary terms range from categories such as 401k investments (mutual funds, bonds, stocks, asset allocation), annuity payments, rollovers, withdrawal rules and more. 12b-1 Fees 12b-1 fee represents expenses used for marketing and promotion of the fund. 12b-1 …
While starting your own business can be an excellent way to secure your financial future, finding the cash you need to get that startup off the ground can be very difficult. One possible solution is to use the funds in your 401(k) plan, but you need to tread cautiously and examine the options before proceeding. …
What is a Direct IRA Rollover? A Direct IRA Rollover is when your 401k retirement savings (or 401k distributions) are transferred directly from your old employer’s account to your own Individual Retirement Account through a trustee-to-trustee transfer. This means the money never actually reaches your hands, it is wired from your old 401k administrator to …
The IRS (Internal Revenue Service) announced the cost of living adjustments to pension and 401k retirement plans for the upcoming tax year of 2020. These adjustments are carried out by the Commisioner under Section 415 of the Internal Revenue Code. The 401k max contributions for the tax year 2020 and previous years is detailed below: …
Many Corporations have learned from the fraud cases of Enron and WorldCom that they have to minimize their risk when most of their employees’ retirement savings are invested in company stock. What happens when the stock takes a deep plunge and employees lose a big chunk of their retirement savings? Million dollar lawsuits! Case in …
Most 401k investors rely on their month or year end 401k balance statements to see the financial position of their retirement plans. Most of them however do not understand the rules and regulations specified in the 401k document (you can request a copy of this document from your 401k administrator). Here are 5 things that …