- Can You Have a 401(k) and an IRA?
You can have a 401(k) plan and an individual retirement account (IRA) at the same time. In fact, you can contribute up to the annual limit to each account, thereby maximizing your retirement savings. However, your ability to take a… read more…
- How Much Do I Need for an Interest-Only Retirement?
For an interest-only retirement, you’ll need to have a large nest egg. How big a nest egg depends on your target income and the interest rate. For example, an annual income of $48,000 would require a nest egg of $1.6… read more…
- 5 Disadvantages of Saving With a 401(k) Plan
For most, the advantages of 401(k) plans outweigh the disadvantages. But there are some people who would benefit from steering their retirement savings to other investment vehicles. Could you be one of them? This roundup of 401(k) disadvantages will help… read more…
- 401(k) Loans vs. Hardship Withdrawals
For the most part, the money you place in your retirement accounts is untouchable during your working years. If you follow these rules, the IRS affords you various tax benefits for saving for retirement. However, there may come a time when… read more…
- How Deferred Retirement Option Plans (DROPs) Work
Deferred retirement option plans (DROPs) are of benefit to both employees and employers. In exchange for continuing to work past your eligible retirement age, an employer will set aside annual lump sum payments into an interest-bearing account. Upon retirement, the… read more…
- What Is the Pension Benefit Guaranty Corporation (PBGC)?
From a retiree’s perspective, the biggest risk with defined benefit retirement is that you are at the mercy of your former employer. That could put your retirement at risk if the employer or its pension fund runs into trouble. The… read more…
- Types of Pension Payouts: Lump Sum vs. Monthly
A lump sum pension payout allows retirees to receive their entire pension balance upfront rather than in ongoing monthly payments. This option provides flexibility, enabling individuals to invest, spend or manage their funds as they see fit. However, taking a lump sum means assuming responsibility for financial planning, tax implications and potential market risks. In… read more…
- SIMPLE IRA vs. SIMPLE 401(k): What’s the Difference?
If you work for a small business (one with 100 or fewer employees) you may not think much of your retirement savings options. In fact, a recent study from LIMRA found that only 42% of small businesses offered retirement benefits.… read more…
- How Does a Systematic Withdrawal Plan (SWP) Work?
If you’re ready to start taking income from your retirement accounts or investment portfolio, you might consider setting up a Systematic Withdrawal Plan (SWP). SWPs are a way to set up regular payouts from your investments, either monthly, quarterly, semi-annually, or annually. They are commonly used during retirement but can also be utilized at other… read more…
- What Is the Difference Between Medicare and Medicaid?
Medicare and Medicaid are two health insurance programs run by the government. Despite their similar names, they differ in some key respects. Medicare is available to most Americans over the age of 65, whereas Medicaid is exclusive to lower-income individuals… read more…
- What Constitutes Early Retirement Age?
Getting the timing right for retirement matters for your financial well-being. While many people relish the idea of starting their retirement ahead of schedule, retiring too early could leave you without enough savings to maintain your lifestyle over the long… read more…
- How Much Should You Contribute to Your 401(k)?
Most retirement experts recommend you contribute 10% to 15% of your income toward your 401(k) each year. The most you can contribute in 2023 is $22,500 or $30,000 if you are 50 or older (that’s an extra $7,500). Consider working with… read more…
- Is a Solo 401(k) a Good Choice When You’re Self-Employed?
The sole proprietor 401(k) is a retirement plan designed for small-business owners who don’t have any employees or only a spouse as their sole employee. It allows participants to invest more money than they could through a traditional 401(k). As… read more…
- All About Catch-Up Contributions
Catch-up contributions allow people age 50 or older to save more in their 401(k)s and individual retirement accounts (IRAs) than the usual annual contribution limits set by the IRS. The idea is to make up for the years you didn’t… read more…
- Ways to Protect Your Retirement Savings in a Divorce
Protecting your retirement savings during a divorce may not be at the top of your mind when you are going through the process of splitting up with your spouse. The emotional toll on you and your family, after all, likely… read more…
- A Guide to 457(b) Retirement Plans
A 457(b) plan is an employer-sponsored, tax-deferred retirement savings vehicle available to some state and local government employees. It works like a 401(k) in that employees can divert a portion of their pay to their retirement account. This provides an immediate tax… read more…
- What Are the Costs of Living on a Cruise Ship as a Retiree?
The first step in planning for retirement involves forming a clear vision of the lifestyle you want to enjoy. Often that means pulling up stakes and moving to another location in the United States or abroad – choosing your new home… read more…
- IRA Withdrawal Rules
When you’re ready to take withdrawals from your IRA, you’ll find there are plenty of rules to follow. Failure to stick to these guidelines could have serious ramifications. The most notable among these is a 10% penalty tax on IRA withdrawals made before age 59 ½. Beware, though, as traditional and Roth IRAs have two distinct… read more…
- What Is a Gold IRA?
A gold IRA is one way to save for retirement. As its name suggests, instead of stocks or bonds, it holds gold in the form of bars, coins and bullion. It can also hold other precious metals like platinum and silver.… read more…
- How to Make Withdrawals From Your 401(k)
Regardless of when you do it, making a withdrawal from your 401(k) requires you to follow a handful of rules. That’s because you’re tapping your tax-deferred retirement savings, which means the IRS keeps a close eye on it. During retirement, these withdrawals are also known as distributions. Perhaps the most important age when it comes… read more…
- What Is a Non-Deductible IRA? Definition and Contribution Limits
A nondeductible IRA is a retirement plan you fund with after-tax dollars. You can’t deduct contributions from your income taxes as you would with a traditional IRA. However, your non-deductible contributions grow tax-free. Many people turn to these options because… read more…
- A Guide to the 5 Stages of Retirement
Retirement planning is a lifelong process that takes ample organization, forethought and effort to do successfully. The easiest way to manage this sometimes overwhelming venture is to split your retirement planning into different sections. Lucky for you, there are already… read more…
- What Is Indexed Universal Life (IUL) Insurance, and Is It a Good Investment?
In exchange for paying premiums, life insurance provides beneficiaries with a large payment upon the insured’s death. It’s a way to protect your family after you pass, especially if that happens when they still depend on you financially. But there are… read more…
- What Is a Qualified Domestic Relations Order (QDRO)?
Not to be confused with a divorce decree or property settlement, a qualified domestic relations order (QDRO) specifically recognizes an ex-spouse’s, or soon-to-be-ex-spouse’s, interest in the other spouse’s qualified retirement plan. A QDRO can also recognize the rights of the… read more…
- Is a Variable Annuity a Good Idea?
Variable annuities offer strong growth potential and considerable risk all at once. Because the returns you earn through a variable annuity are based on the performance of an investment portfolio, you stand the chance of losing money. However, there are… read more…