- What Is Considered Earned Income for IRA Contributions?
Understanding what qualifies as earned income for IRA contributions is essential for effective retirement planning. If you’re looking to build your nest egg through an Individual Retirement Account, knowing which types of income allow you to make contributions can help maximize your savings potential. Earned income typically includes wages, salaries, tips, professional fees, bonuses and… read more…
- This New Rule Will Bring a Big Change to Your Retirement Plan Rollover
Billions of dollars are moved annually from 401(k) plans to IRAs. And starting in July, the U.S. Department of Labor (DOL) will mandate that all financial advisors and brokers comply with a higher fiduciary standard for retirement plan rollovers. Under… read more…
- Rising Interest Rates Mean Annuities Are Hot
Annuities can be a useful part of a retirement plan. They provide guaranteed retirement income, effectively replicating the monthly checks that workers with a defined benefit plan like a traditional pension plan receive. Fewer workers than ever have defined benefit… read more…
- SIMPLE IRA vs. Traditional IRA: Key Differences
Investing for retirement is critical for your long-term financial stability. But which of the several available tax-advantaged investment accounts should you choose? SIMPLE IRAs and traditional IRAs are two options. Let’s explore the details of a SIMPLE IRA and traditional IRA. If you need help sorting out the best option for your unique situation, a financial… read more…
- The IRS Is Changing How Your Beneficiaries Receive Your Retirement Funds
In an effort to streamline the regulation that governs how retirement accounts can be used, the IRS has proposed a change for 403(b) plans — a type of workplace retirement plan used mostly by public and non-profit employees. Employer-sponsored plans… read more…
- The IRS Just Boosted How Much You Can Contribute for Retirement
Healthcare ranks as one of the most pressing concerns for retirees, and with medical expenses rising every year, two out of three Americans worry about high healthcare costs in retirement. Models estimate that a retired couple at age 65 will need roughly $200,000 saved for healthcare alone–exceeding the average American’s total savings. As part of… read more…
- Can You Have More Than One HSA Account?
It is common for people to have more than one health savings account (HSA.) Changing jobs can lead to someone having multiple HSAs. Having more than one HSA offers some potential advantages, such as the opportunity to take advantage of employer matches with one HSA while enjoying expanded investment options with another HSA. However, fees… read more…
- Who Should Not Buy an Annuity?
An annuity can provide a steady stream of income for retirement. This type of insurance contract allows you to pay a premium upfront, then receive payments from the annuity company at a later date. Annuities offer some financial advantages, but… read more…
- HSA Beneficiary Rules
Health savings accounts (HSAs) allow you to save money for healthcare expenses while enjoying some tax breaks. This type of tax-advantaged account is associated with high deductible health plans (HDHPs). If you have an HSA, you can name a beneficiary to receive the money in your account should something happen to you. There are some… read more…
- What Is Pension Risk Transfer?
A pension risk transfer (PRT) occurs when a company ends its pension program. Usually in the process it tries to stop paying its existing benefits under pension programs for past and present employees. While it’s illegal for companies to unilaterally rescind pensions that employees have already earned (whether current workers or retirees), there are several… read more…
- Alternatives to the Eliminated Stretch IRA
Whether you’ve amassed a small fortune during your working career or have a five-figure IRA you’d like to pass on, one popular way to do so has been the stretch IRA. This strategy will allow you to pass your IRA onto your heirs without many of the limitations that normally apply to these accounts. However, the… read more…
- Could Target-Date Funds Imperil Your Retirement?
For years, target-date funds have been one of the go-to options for retirement investors. The appeal is clear; when you invest in a target date fund, you put your money in the hands of a manager who will adjust your… read more…
- What You Need to Know About Fidelity’s New Bitcoin Offering for Your 401(k)
Roughly 80 million U.S. investors own or have invested in digital currencies, and with a growing appetite for such alternative investments, retirement savers can now benefit from yet another way to invest. Financial firm Fidelity Investments has announced an expansion… read more…
- Can Social Security Be Grossed Up?
If you’re a retiree who depends on Social Security, in some cases you can gross up your Social Security income on financial paperwork. You would do this to make your income more accurately represent the equivalent amount of earned income when it comes to qualifying for loans or other financial programs. This depends entirely on the… read more…
- Does Rebalancing Your 401(k) Cost Money?
When you first opened your account, you hopefully thought long and hard about how to allocate your money, putting a certain percentage towards riskier stocks and other money towards safer investments like bonds. But have you thought about rebalancing since… read more…
- American Seniors Must Prepare For Mental Health Costs in Retirement
As you get older, healthcare becomes increasingly important — between preventative care and trips to the doctor to fix the aches and pains that come with age, having a good health insurance plan is key to both personal health and financial health. While the focus is often on physical health and the care that accompanies… read more…
- Average HSA Balance By Age
Health savings accounts or HSAs help offset your out-of-pocket healthcare costs when you have a high-deductible health plan (HDHP). HSAs offer tax advantages that make them useful for covering medical costs in retirement. Taking a look at the average HSA balances by age can help you see how you stack up. While it’s wise to… read more…
- This Type of Senior Is Struggling to Afford Retirement
Amid an economic environment marked by inflation, single seniors are having a harder time in retirement compared to married seniors, a new survey has found. The results of the American Advisors Group survey suggest unmarried seniors have less money than they thought they would have in retirement, expressed a desire to increase their monthly cash… read more…
- Here’s How Catch-Up Contributions Can Grow Your 401(k) Over Time
Catch-up contributions were first introduced in 2002 as a way for people to save more money for retirement starting at age 50. While the government initially permitted savers to contribute an extra $1,000 to their 401(k), the limits on catch-up contributions have gradually increased in the years since. In 2022, savers can contribute an extra… read more…
- How to Invest a Lump Sum Pension Payout
A pension plan promises to pay a defined benefit for the length of an employee’s retirement. Depending on your financial circumstances, you may consider taking a lump sum instead of a lifetime monthly payment. Let’s take a closer look at… read more…
- Social Security Disability Rules After Age 50
Workers of any age who become disabled may be able to qualify for monthly cash payments from the federal government. However, people older than 50 may find it easier to be declared disabled and eligible for Supplemental Security Income (SSI) benefits. SSI is similar to but separate from regular Social Security benefits, which are based… read more…
- Do I Need a Financial Advisor for My 401(k)?
With the demise of company pensions, 401(k) plans have become the de facto retirement plan for the majority of American workers. These company retirement plans make it easy for employees to save for the future through payroll deductions. However, most… read more…
- How Much Should I Have in My 401(k) at 50?
Most Americans have less in their retirement accounts than they’d like, and much less than the rules say they should have. If that describes you, you’re not alone. Now, most financial advisors recommend that you have between five and six times your annual income in a 401(k) account or other retirement savings account by age 50.… read more…
- How Much Interest Does $3 Million Pay?
Living off the interest of $3 million dollars depends on how the money is invested and how much risk you’re willing to take. A portfolio held entirely in high-yield savings might generate under $120,000 per year, while higher-yielding assets like dividend stocks, REITs or annuities could produce significantly more. Each option carries trade-offs in liquidity,… read more…
- Is Social Security Taxed After Age 70?
Millions of older Americans live solely on a Social Security check. And while other Americans rely mostly on workplace retirement plans like a 401(k) or an individual retirement account (IRA), these monthly benefits from the government can make or break your… read more…