From the category archives:

401k limits

401K Loans-Only When You Are In a Financial Pinch

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Buffer

Buffer Before you get all excited about the possibility of taking money out of your 401K without penalty, consider these facts: For a loan to not be treated as a taxable distribution it has to be repaid within 5 years and it can’t exceed the lesser of $50,000 or the greater of 1/2 of the [...]

401K Calculator-Calculate What? Why use one?

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Buffer

Buffer I am not a big fan of 401K calculators because people freak out when they see how much they need to meet their goals and most of the time they are not very accurate. Let’s face it. We live in a world that is changing rapidly and what tax rates and goals and rates [...]

When NOT to do a 401K Rollover

Buffer

Buffer Everyone talks about doing a rollover of your 401K plan assets into an IRA and the wonderful advantages of that. Why do so many people do rollovers— because the receiving firm WANTS YOUR MONEY. But there are some times when it is appropriate to just leave it with your ex-employer. Here are 4 criteria [...]

401K – what is it? and why should you care?

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Buffer

Buffer The 401K plan is a defined contribution pension plan that is offered to employees of a company. It is used for participants to save over the long term for retirement. It is used as a supplement to social security for some people and for some it is used as an investment for retirement. You [...]

401K withdrawal

401k withdrawal
Buffer

Buffer When it comes to 401K withdrawals- just say no! Step away from the 401K account and find money somewhere else. You will find that taking money out have severe penalties — not just the 10% that you hear about but also federal income taxes and state income taxes too (depending on the state that [...]

5 Tips on How to Manage Your Own 401K and Save on Financial Advisor Fees

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Buffer

Buffer Don’t know if you should contribute to your 401K or not? You are not alone. Many people find the information overwhelming. Stop wondering if you can do better somewhere else. The 401K account is there to help you grow money that will supplement your social security. Take full advantage of it by following these [...]

Are You on the 401K Plan Escalator?

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Buffer

Buffer Most employers now enroll you automatically in the company’s 401K plan. Now employers may include a default escalator feature that will automatically periodically increase your 401K contribution without your affirmative election according to the “Savings Initiative” guidance (IRS Revenue Ruling 2009-30). Some plans will allow you to contribute your unused paid time off (PTO), [...]

401K Investment? No, 401K Plan

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Buffer

Buffer It really irks me when people call their 410K plan an investment. Let’s get the facts straight. A 401K is the name of a type of an account. Just like IRA, Roth IRA, 4013b, etc. It is a type of account. What you put into that account is an investment. It could be a [...]

Inherit a 401K? Great! Now How Will You Pay the Taxes??

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Buffer

Buffer Only spouses have been able to avoid a large tax bill when they inherit a 401K. The new tax law now allows non-spouses (children and other family members) opportunities to avoid taxes on inherited 401K money. Typically the spouse is allowed to take the lump sum distribution from a 401K and roll it over [...]

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Fern Alix LaRocca CFP® 2012. All Rights Reserved