401 k rules The 401 k rules that are in place today are created by the Department of Labor and the IRS – not your plan administrator. So do not be too hard on your plan administrator if they deliver a message to you about the 401 k rules that you do not agree with. … Read more
When you leave your job, you do have a few options on how to handle your 401k account. Although the 401k rollover options available to plan participants are somewhat limited. One option available to you is a 401k rollover option: which includes a 401k transfer or a 401k rollover. Or your other option is a … Read more
You have some control over when you start taking your distributions at retirement. The 401k rules stipulate certain dates that you must follow, but the flexibility comes in between 59 ½ and 70 ½. To avoid unnecessary taxation and penalties it is recommended that you start distribution after age 59 ½. You do not have … Read more
When you are reviewing your 401k investing, your 401k advisor should help you with making the best investment choices within the 401k plan. Your 401k advisor should review your investment choices based on your personal time lines and risk tolerance levels. Your 401k advisor should help you determine if you are investing enough for your … Read more
401k distributions: As an added value service to plan participants, many 401k plans offer a personal financial advisor for participants to work with. The advisor should help you to understand your options for 401k distributions when you leave employment. You have several distribution alternatives available. 1) you can choose to not make any 401k distributions … Read more
The 401k distribution rules are also set by the DOL and IRS not your employer. A 401k distribution is generally included in your taxable income since that money has never been taxed. Your 401k contributions were pre-taxed monies. You can generally receive your 401k distribution in an annuity payment, periodic installment payments or a lump … Read more
Bonuses – raises – tax refunds: Before you received your bonus, raise or tax refund you were living without that extra money. So after you receive that extra money, keep living within that same budget. And use the bonus, raise or tax refund to make your 401k contribution. If your employer matches your 401k contribution, … Read more
Contribution limits. These limits may change every year to keep up with inflation. Check with your employer or your 401k provider to stay current. A 401k loan. Most 401k plans are customized in design. With that in mind, not every 401k plan is set up to allow for a 401k loan. You will have … Read more
401k laws were established to protect you as an investor. The laws spell out the rules and regulations that must be followed on 401k investments, 401k contribution limits and 401k withdraw rules. It’s because of 401k laws that you can feel confident when investing in a 401k. The 401k laws help to make the 401k … Read more
Your 401k pension guide is usually available from your 401k plan administrator. Most plan administrators make available to employers some type of guide that benefits the employer as well as the plan participants. This guide can help promote the 401k plan, show participants how to use the 401k plan tools and how to make a … Read more
A solo 401k is just another name for an individual 401k. These special 401k plans were created by EGTRA in 2001 to benefit the small business owners who may only have a single participant for the plan – the entrepreneur themselves. A solo 401k or individual 401k is for a self-employed business owner plus his/her … Read more
401k to ira Beneficiary ira 401k fund taxable 401k cashing out 401k A 401k to ira rollover is very common in these tough economic times with all the job changes and downsizing. When you do a 401k to ira rollover be sure to check: 1) your beneficiary ira 2) the 401k fund and 3) if … Read more
Even though a roth 401k and a safe harbor 401k are both set up as 401k retirement investment vehicles, each plan has a different tax structure. ROTH 401K With this type of 401k, contributions are made with after tax money, so your withdrawals are tax free. The withdrawals are tax free if the account has … Read more