Cashing in a 401(k) is no way to reinvest your retirement funds. You have several options for reinvesting your funds to build up for your retirement by transferring your IRA from an old employer. Reinvesting your retirement funds, rather than cashing them out, will keep you from paying fees and penalties from the early withdrawal.
Will the government meet its Social Security obligations in the future? Does it make sense to change the social security system? One thing is clear -- social security might not be around forever, so the sooner you start thinking about securing your own retirement, the better.
Getting your paycheck or Social Security check electronically through direct deposit has many benefits including safety. Hear the story of one senior who now receives her Social Security money electronically and really likes it. In addition, if all Social Security recipients received their cash directly into bank accounts it would save the federal government a lot of money in postage and printing expenses.
When was the last time you looked at your 401(k) plan and whether you were taking maximum advantage of it? It's a good time of year for employees to look at their 401(k) plan and make some changes that could boost your investment returns next year and for many years to come. Except for wondering if they'll be able to retire at all, most employees don't spend more than a few minutes thinking about their 401(k).
Retirement accounts have many benefits that 529 plans don't have/ If you start closing traditional IRAs (which are pre-tax dollars) and moving them to a 529 plan, you'll have to pay taxes and the penalty on the cash. You won't pay taxes on the contributions to your Roth IRA, but you will pay taxes and penalties on any earnings if you switch the funds to a 529 plan. On the other hand, you can withdraw contributions and earnings from your Roth IRA tax and penalty free if you use it to pay for college tuition, medical bills, or a down payment on a first home.
The retirement age is going up and the cost of retiring is going up too. As many as three quarters of Americans do invest in their company sponsored 401(k) plans, but there are plenty of people who don't. The problem is, most of those who don't participate in 401(k) plans are in their 20's and they're the ones who would benefit most.
One of the great tax saving benefits created by Congress over the past few years is the Roth IRA. One of the reasons Roth IRAs have become so popular with seniors and baby boomers is that they offer four distinct advantages over the conventional IRA. For example, your earnings in a Roth IRA account grow tax free forever.
Saving money is a challenge for many of us. Whether you are saving for college, saving for a down payment, or saving for retirement, all it takes is a good system. Here's how one savings plan resulted in a nice, plump savings account.
Can you put part of your home's equity in 401(k)'s or IRA's? Ilyce says to proceed with caution.
What should you consider when you're debating between a Roth IRA and a 401(k) plan? A Roth IRA and 401(k) plan differ in when the money you invest gets taxed. With a Roth IRA you're investing after-tax dollars whereas you invest pre-tax dollars in a 401(k). Roth IRA earnings are tax-free whereas 401(k) money gets taxed when you withdraw it.
