Has your 401k balance hit a record high?
If you’re saving into a 401k plan, the chances are that your plan is worth more today than ever before. New research from the US’ largest provider of 401(k) plans has found that 401(k) balances reached record highs in 2012, thanks to a strong stock market and increased contributions from savers. CNN reports that Fidelity Investment’s average 401(k) balance hit $77,300 at the end of 2012. This represents an almost 12 per cent increase from [...]
The Top 3 Things You Should Know About Your 401k in 2013
If you’re looking to maximize your retirement savings, you need to know about the changes happening to your 401k plan in 2013. The rules for 401(k)s often change, and the IRS announced alterations to these retirement plans back in October 2012. There’s some great news if you’re looking to get the most out of your retirement fund, as we see next. You’ll benefit from a higher 401k contribution limit in 2013 If you want to [...]
How To Start a 401k Plan For Your Employees
If you’re a growing company with ambitions to be successful, offering a good 401k plan for your employees should be a priority. 401k plans help you to attract and retain good employees and offer your staff the opportunity to save for their retirement. While it’s unlikely that you will set up a 401k plan yourself – you will probably use an outsourcing firm – it’s important that you understand how a 401k plan works before [...]
Why You May Need To Save More To Your 401k Plan If You Drive Safely
How safe is your driving? If you’re looking for a long and happy retirement, it’s vital that you take care when you’re driving. Safer drivers are less likely to be injured or killed in accidents – meaning you may have to save more into your 401k plan if you plan to live to a ripe old age! Forbes recently published some suggestions for how to make yourself a safer driver as you get older. Here, [...]
What Age Can You Retire?
All across the world, retirement ages are increasing. As people live longer and aging populations increse the burden on government pension payments, many nations are increasing their retirement age. For example, in the US, full retirement age (also called ‘normal retirement age’) had been 65 for many years. However, beginning with people born in 1938 or later, that age gradually increases until it reaches 67 for people born after 1959. The Congress cited improvements in [...]
Everything You Need To Know About Borrowing Against Your 401k
If you’re faced with an unexpected financial situation or you suddenly need cash, one option may be to consider taking a loan from your 401(k). And, you’re not alone. According to a study by the Employee Benefits Research Institute (EBRI), nearly 20 per cent of all 401(k) participants had plan loans outstanding. However, you should think carefully before taking a loan out against your retirement savings. What are the loan limits? What are the advantages [...]
IRAs and 401ks – What’s the Difference?
If you’re looking to save your retirement, you’ll probably have come across 401k plans and IRAs (Individual Retirement Accounts). Millions of people save for their retirement through these schemes and they both offer a range of benefits to plan holders. Here, we look at the main differences between a 401k and an IRA and highlight the advantages of each type of scheme. Keep reading to learn more. What is a 401k? A 401(k) is a [...]
How Much Can I Contribute To My 401k?
One of the common questions we are asked is ‘how much can I contribute to my 401k’? Well, there are rules in place limiting the amount of income you can invest into your 401k, although these limits affect relatively few people. CBS News reported in 2011 that just 5 per cent of around 60 million 401k plan participants actually contributed the maximum amount to their retirement savings. The simple answer to the above question is [...]
Can I Use My 401k To Buy A House?
One of the most common questions we receive about 401k plans is ‘can I use my 401k to buy a house?’ If you have a sum saved in your 401k it may seem like the obvious place for you to obtain the downpayment you need to buy a property. While it is possible to use your 401k to buy a house, there can be significant downsides to this course of action. Keep reading to find [...]
Can I Roll My 401k To A Roth IRA?
A common question that Americans ask is ‘can I roll my 401k to a Roth IRA?’ This is because, whenever you leave your job, you have a decision to make with regards to your 401k plan. Typically many people elect to rollover their 401k to a traditional IRA (Individual Retirement Arrangement). However, it’s also possible to consider a rollover to a Roth IRA. Keep reading for our guide to how you can roll your 401k [...]