Tag Archives: 401k
Starting, Maintaining a 401(k) Made Easy
NEW YORK (TheStreet) — Investing in a 401(k) plan can be stressful because there’s a lot to consider — stock or bond funds, time horizon, appetite for risk. But it doesn’t have to be.
The No. 1 thing to remember, as financial professionals remind us, is to diversify. That helps mitigate risk, which can erode investment returns.
Diversification in a 401(k) account has become increasingly important as those defined-contribution accounts will be the key source of retirement income for many. Nearly gone are the days that pension plans and Social Security could be relied on for income during the golden years.
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Should I use my 401k to pay off student loans?
While it’s tempting to consider using retirement funds to pay off student loan debt, there are huge drawbacks, warns Mark Kantrowitz, founder of Finaid.org.
College savings advice – CNNMoney.com
Your 401K Match Just Got Axed; Now What?
NEW YORK (TheStreet) — According to a New York Post report, “embattled” PepsiCo CEO Indra Nooyi is considering eliminating the company’s matching contribution to employee 401K retirement accounts, as well as 4,000 layoffs.
Pepsi’s employees also have a separate pension plan, independent of the 401-K, according to the report, but the elimination of the match raises the question of what an employee should do if a 401K match is eliminated. Is it still worth making a tax-deferred contribution into the 401K? Is it worth avoiding the taxes?
PepsiCo employees may not wish to toast CEO Indra Nooyi
For starters, a matching contribution to a 401K is a wonderful thing. If, for example, your employer is willing to match half your contribution up to 3%, and your gross salary is $ 50,000 a year, and you contribute 6% of your salary in a year, you contribute $ 3,000 to the 401K and the employer contributes $ 1,500. That’s a fat 50% immediate return on your investment for that year.
Video: Make the most of your 401(k)
Personal finance contributor Carmen Wong Ulrich speaks to the “Early Show” anchors about how to make the most of your 401(k).
How to Make the Best of a Bad 401(k)
NEW BERLIN, Ill. (TheStreet) — Chances are, you have a 401(k) or some other sort of Qualified Retirement Plan such as a 403(b), 457 or some other numerical combination. And chances are, unless you’re in the extreme minority, your 401(k) plan has some features that are lacking. Most often, we’ll see such things as limited options for diversification (although this is less likely these days), expensive fund choices and limitations for access to funds (not necessarily a bad thing).
How do you make the best of a bad 401(k)?
Unless you’re in the extreme minority, your 401(k) plan has some features that are lacking, and you’ll have to go through the funds to see where the weaknesses lie.
401(k) Tax Changes May Be On Fast Track
WASHINGTON D.C. (TheStreet) — In the coming weeks, Americans could face sweeping changes to the tax deferral status and funding strategies of their retirement plans.
The Senate Finance Committee last week held a hearing (a webcast and testimony can be found here) to discuss proposals for strengthening the nation’s retirement system as well as dealing with the reality that these plans are a ripe target for deficit reduction plans.
A rethinking the tax structure of 401(k) and IRA plans could be included in Congress’ deficit reduction proposals due in December.
As officials in Washington grapple with debt reduction and the need for increased revenue, rethinking the tax structure of 401(k) and IRA plans has come under consideration and could be included in deficit reduction proposals due in December.
IRS raises 401(k) contribution limit to $17,000
You’ll be able to contribute more tax-free money to your 401(k) next year, the IRS announced Thursday.
Retirement advice and news – CNNMoney.com
Financial Advisers Prepare For New 401(k) Reporting Rules – Worcester Business Journal
 Indianapolis Star |
Financial Advisers Prepare For New 401(k) Reporting Rules
Worcester Business Journal Do you know how much your company's 401(k) retirement plan is costing your business and its employees in fees and charges? If you don't, you may soon find out. New regulations scheduled to take effect next year will require financial … FINANCE: Business Owners can Have Flexible Retirement Plans Good news for your retirement |
401(k) Contribution Limits Increased to $17,000 Per Year
All you 401(k) investors, rejoice! Actually, the good news isn’t just limited to 401(k) investors, but includes 403(b) investors, participants in the government Thrift Savings Plan (TSP), and most 457 plans, as well.
The IRS has increased the 401(k) contribution limit for the upcoming tax year to $ 17,000 from the current $ 16,500 to keep pace with inflation. This is part of its duties according to law, which requires that contribution limits are indexed to the inflation rate to keep pace with the cost of living, adjusting in $ 500 increments. These revisions to the retirement plan rules are for the fiscal year 2012 (which will be filed by April of 2013).
That means an opportunity to put more money aside for your golden years, while simultaneously taking advantage of tax-breaks that back out money put into the 401(k) plan from your Adjusted Gross Income. Saving an additional $ 500 per year may not seem like much, but for a 30 year old who hopes to retire at 65, it can mean an having an extra $ 69,000 to $ 171,000 in wealth by retirement depending upon the return earned by the investments in the account.
401(k) Contribution Limits Increased to $ 17,000 Per Year originally appeared on About.com Investing for Beginners on Thursday, October 20th, 2011 at 22:17:59.
