Retirement
Many Americans are looking for ways to stretch their savings and retire on a budget without compromising their quality of life. By focusing on practical tips you can create a sustainable retirement plan that allows you to live comfortably in your golden years. Here are 11 general tips that can…
Changing the beneficiary of a 401(k) plan can involve specific requirements, particularly when it comes to spousal consent. In many cases, to protect your spouse’s financial interests, you need spousal consent to change your 401(k) beneficiary designation. This rule stems from federal regulations under the Employee Retirement Income Security Act (ERISA),…
Under the Department of Labor’s rules, employers must deposit employee deferrals into 401(k) plans as soon as administratively feasible, typically no later than the 15th business day of the following month. Late contributions to a 401(k) could therefore lead to penalties, interest charges and the need to file a Voluntary…
401(k) disclosures provide detailed information about the fees and expenses associated with your retirement plan. The costs associated with a 401(k) can significantly impact your retirement savings over time, so being aware of these fees can help ensure that you are maximizing your retirement savings and not overpaying for services…
A spouse beneficiary is the person who will inherit a 401(k) account if the account holder passes away. The rules for spouse beneficiaries determine how the account assets are distributed, which can affect the financial security of loved ones relying on those funds. Understanding these rules could help you distribute…
The only way to avoid Medicare premium penalties is to enroll in a timely manner. Medicare charges a penalty for Part B and Part D enrollees, and some Part A enrollees, if they have a significant gap in their health care coverage. This can happen either because they didn’t enroll…
Relying solely on Social Security for your retirement income can be a risky proposition. While Social Security provides an essential safety net for millions of retirees, it is not designed to fully cover the cost of living for most people. For those who attempt to live on Social Security alone,…
Many employees rely on 401(k) plans for retirement savings. But hidden fees in 401(k) plans, including administrative costs, investment fees and individual service fees, can significantly impact your retirement savings. Discuss fee structures with your plan administrator or financial advisor, who can help you optimize your investments. What Are Hidden 401(k)…
Unlike traditional IRAs, contributions to a Roth IRA are made with after-tax dollars, meaning that withdrawals in retirement are tax-free. This makes Roth IRAs appealing for those who anticipate being in a higher tax bracket in the future. Roth IRAs also allow account owners at any time to make penalty-free…
Understanding when 401(k) contributions stop is essential for employees who want to maximize their retirement savings. Contributions to a 401(k) plan are capped annually by the IRS, with limits for 2024 set at $23,000 (and an additional catch-up contribution of $7,500 for those over age 50). Typically, once you reach…
