- This New Federal Proposal Could Give You a 5% Match on Your Retirement Contributions
Low- and middle-income workers who aren’t covered by a workplace retirement savings plan would get access to the federal Thrift Savings Plan, under a bipartisan bill introduced in the U.S. Senate recently. “Americans who work hard their entire lives deserve to retire with dignity,” Sen. John Hickenlooper, D-CO, said in a statement. “This bill helps… read more…
- Rules for Cashing Out Your IRA After Age 70
Cashing out an IRA after age 70 involves specific rules that depend on the type of IRA and the account holder’s age. Traditional IRA owners must begin taking required minimum distributions (RMDs) starting at age 73, while Roth IRAs don’t require RMDs during the original owner’s lifetime. The IRS taxes withdrawals as ordinary income unless… read more…
- How Much High-Income Earners Have Saved for Retirement
If you’ve got more money, you’ve got more retirement options. High-income earners have substantial resources at their disposal, presenting the potential for massive gains and crushing losses. However, practical strategies and careful financial decisions can help you retire as a multi-millionaire. High-income earners often have different retirement needs than others. Here’s how much high-income earners… read more…
- How the IRA Aggregation Rule Works
Individual retirement accounts (IRAs) are a popular and common way for Americans to save for retirement. However, not everyone is aware of a crucial component of IRA regulations called the “aggregation rule.” Essentially, if you have multiple IRAs, this rule treats them as a single IRA for tax purposes. This can be especially important to… read more…
- I’m 65 With an IRA Worth $250k and a $75k Mortgage. Should I Withdraw From My Investment to Pay Off My Debt Before Retiring?
Do you prioritize debt or investments? This is a common questions in personal finance, with debt positioned as investment’s evil twin. While your investments grow and make you steadily wealthier, growing debt can make you steadily poorer. You want to hold investments for as long as possible. You want to pay off debt as quickly… read more…
- I Have $250k in an IRA and Will Receive $3,000 Monthly From Social Security. Can I Retire in 5 Years at 70?
If you’re in your mid-60s and still working, it may be time to start seriously planning for retirement. That doesn’t mean you need to leave work immediately, but retirement is likely on the horizon. Imagine you’re 65 years old, you have $250,000 in an IRA and expect to receive $3,000 per month from Social Security.… read more…
- What Types of Fees Do You Pay With a Roth IRA?
A Roth IRA, or Individual Retirement Account, is a widely used tool for retirement savings. However, like other financial products, it can come with a variety of costs. These can range from transaction fees and account maintenance charges to early withdrawal penalties and fund expense ratios. Understanding these fees, and figuring out how to navigate… read more…
- Save More in Your 401(k) or IRA in 2024: IRS Announces New Contribution Limits Up to $23,000
Contribution limits for 401(k)s, IRAs and other retirement accounts are going up in 2024. The IRS, which regulates annual contribution limits on qualified and tax-advantaged retirement accounts, announced the 2024 contribution limits for various plans on Wednesday. A contribution limit demarcates the amount an employee can contribute to their respective retirement plan in a given… read more…
- What Is the Average Monthly Retirement Income in Every State?
The average retirement income varies widely across the U.S. In the state with the highest retirement income, the average retired household brings in more than twice as much as retirees in the state with the lowest retirement income. Differences stem from local variations in wages and salaries, cost of living, tax rules, the incidence of… read more…
- 8 Reasons Annuities Might Be a Bad Investment for You
You pay $1 million upfront and receive $5,000 a month after retiring. Simple, right? Unfortunately, annuities are rife with complexities that can prevent a clear understanding of their benefits and potential pitfalls. This insurance product is often considered a safe investment, but annuities have their own risks. Here’s why they might be a bad investment… read more…
- Solo 401(k) Contribution Limits
A solo 401(k) is a tax-advantaged retirement account designed for self-employed individuals and small business owners with no other employees. If you’re wondering how much you can contribute to a solo 401(k), the answer is up to $70,000 in 2025 (plus a catch-up $7,500 contribution if you’re 50 or older or $11,250 if you’re aged… read more…
- How to Account for Inflation in Retirement Planning
Retirement planning is a critical process that can help secure your financial future. And understanding economic factors, like inflation, is essential. While inflation impacts all consumers, it can significantly affect retirees’ purchasing power or what a given amount of money can buy. Retirees may struggle to maintain their financial stability when their purchasing power is… read more…
- How to Open a 401(k) for Yourself Without an Employer
Looking for a flexible retirement plan that meets your self-employment needs? A Solo 401(k) account can allow you to contribute both as an employee and employer, therefore increasing your potential savings to help make your retirement sustainable. If you need help deciding on a retirement plan, a financial advisor can walk you through the benefits… read more…
- What Is a Safe Harbor 401(k) Plan and When Should You Invest?
The Safe Harbor 401(k) is a type of retirement plan designed to provide employers with a simple way to bypass annual nondiscrimination testing. This testing is a complex process that ensures contributions to retirement plans do not heavily favor highly compensated employees. It’s also required by traditional 401(k) plans. Understanding the Safe Harbor 401(k) plan,… read more…
- Eligibility Requirements to Open a Roth IRA
Unlike traditional IRAs, Roth IRAs offer tax-free growth and tax-free withdrawals in retirement. These unique tax advantages can lead to significant savings for the investor, making it an attractive retirement savings option. However, not everyone is eligible to contribute to a Roth IRA. In 2024, single filers with modified adjusted gross incomes (MAGIs) of $161,000… read more…
- Can You Cash Out Your Pension When Leaving a Job?
Cashing out a pension after leaving a job is an option in some cases, but the process can vary depending on plan rules, vesting status and tax implications. Some pensions allow a lump-sum cash-out, offering immediate access to funds – but at the cost of potential taxes and penalties. Others require the money to remain… read more…
- How Much Does It Cost to Open a Roth IRA
As you ponder over your retirement account choices, the Roth individual retirement account might stand out as an investment opportunity. However, before you take on any account you should understand the fees and other costs that come with it. While it typically doesn’t cost anything to open a Roth IRA account other than the initial… read more…
- 403(b) Retirement Plan Withdrawal Rules and Strategies
A 403(b) plan is a tax-advantaged retirement account that is specifically for public school employees and employees of some charities. Just like with a 401(k), both you and your employer can contribute to a 403(b). And in general, you can’t access the money until you are either approaching retirement age or legally disabled, and you… read more…
- My Wife and I Have $1 Million in a 401(k) and Fully Own a $500k Home. Can I Retire in 5 Years at 60?
With $1 million in a 401(k) and no mortgage on a $500,000 home, retirement at 60 may, in fact, be possible. However, retiring before eligibility for Social Security and Medicare mean relying more on savings. So deciding to retire at 60 calls for careful planning around healthcare, taxes and more. At any age, deciding whether… read more…
- Americans Are 3x Likelier to Take a Hardship Withdrawal. But Fidelity Says Doing This Can Protect Your Retirement Savings
Americans are, in growing numbers, relying on their retirement accounts to pay the bills. More specifically, hardship withdrawals from 401(k) and related plans are up. This is shown as a result of numerous studies conducted over 2023, including a new report issued by Fidelity. To address this, Fidelity urges employers to help their employees prepare for… read more…
- It’s Official: Your Social Security Benefits Will Increase This Much in 2024
Over 70 million Americans who receive Social Security or Supplemental Security Income (SSI) benefits will see a 3.2% cost of living adjustment (COLA) in 2024, the Social Security Administration announced recently. For instance, that means the September 2023 average retiree benefit of $1,793 will increase by $57 starting in January 2024. This increase is smaller… read more…
- 401(k)s Are Investing Your Retirement Money in This Asset – What It Means
Managers of 401(k) and similar workplace retirement plans are putting an increasing amount of money in private real estate investments, including commercial real estate funds and real estate investment trusts. This news comes according to a 2023 survey from the Defined Contribution Real Estate Council. In fact, as of Dec. 31, 2022, $59.1 billion was… read more…
- We’re 67, Have $2.5 Million Saved and $40k in Social Security Benefits. Can We Live on $100k Per Year?
Picture this scenario: You and your spouse are both 67, have $2.5 million in savings and collect $40,000 in annual Social Security benefits. Is that enough to support a $100,000 lifestyle in retirement? This question is really multi-pronged. It’ll depend on when you both plan to retire, if you can you generate $100,000 per year… read more…
- I’m 65 Years Old, Have $500k in Cash, $1 Million in an IRA and Social Security. Should I Retire Now?
Someone with $1.5 million in assets on top of Social Security income may be able to maintain a comfortable retirement starting at 65 with the right circumstances. While this is can be a relatively strong retirement profile depending on your needs, location and risk tolerance, you’ll need to plan carefully and make some critical decisions… read more…
- How Much Does It Cost to Open an IRA?
An individual retirement account (IRA) is a type of savings account that offers tax benefits for retirement savings in the U.S. It can play a critical role in strategic financial planning, providing significant tax advantages and bolstering your retirement savings over time. One of the major factors in deciding to invest in an IRA is… read more…