The top companies in the world offer generous 401k employer matches in order to attract top talent and to encourage their employees to participate in their 401k plan. What is 401k employer matching? An employer match is an additional contribution made by an employer towards an employee’s 401k plan. Many employees consider it as free […]
Rollovers of a 401k are typically done when an employee is no longer departs from an employer. If you’re eligible for a solo 401k, rolling over a 401k into a solo 401k could give you some immediate benefits and tax-advantages that your old company 401k never had. It comes with a wider range of investment options […]
Also known as a deferred profit-sharing plan (DPSP), a profit-sharing plan is a retirement plan that gives employees a share in the profits of the company on a quarterly or annual basis. Contributions to a profit-sharing plan are tied to a company’s profits, rather than an employee’s contribution. Employees receive a percentage of the company […]
To calculate your 2022 and 2023 required minimum distributions for your IRA or 401k, use the RMD table below and follow the steps. How to calculate your RMD Example Let’s say that in 2023, you turned 75 years old. And on December 31, 2021, your 401k account balance was $200,000. Based on the RMD chart […]
OVERVIEW Companies aren’t legally obligated to offer a 401k plan to their employees. However, companies that do offer a 401k plan are legally obligated to fairly offer them to any employee who is at least 21 years of age and has provided at least one year of service at the company. A frequently asked question […]
You’re allowed to contribute to both an employer-sponsored retirement (like a 401k or solo 401k plan) and an IRA (both Roth and traditional) in the same tax year. However, there are some instances where your IRA contributions can get restricted or lose the ability to receive a tax deduction. Are you eligible for a solo […]
OVERVIEW If your company provides a 401k plan, there’s a high chance that they also offer employer matching. A study by the Plan Sponsor Council of America showed that 98% of companies that offer a 401k also provide employer matching for their employees. In employer matched 401k plans, employers will contribute to an employee’s 401k, up […]
Early withdrawals made from a 401k plan are subject to a 10% penalty plus income taxes on the amount drawn. If your plan provider enables loans as an option for participants, a 401k loan could be the better alternative to an early withdrawal if you’re in urgent need of emergency funds. What is a 401k loan? A […]
A 401k is typically one of the last places you want to withdraw money because they’re so tax-advantaged. You’re depleting money from an account that offers you tax-free compounding, deferred until retirement (or completely tax-free with a Roth 401k). When you take money out early (before the age of 59½) it’s regarded as a nonqualified […]