Whether your 401(k) plan currently offers this feature or its addition to the plan is just being considered, why not take the following quiz to test your knowledge of this provision that continues to grow in popularity? Test Yourself on Roth 401(k): The income limits that apply to Roth IRAs also apply to Roth 401(k) [...]
Your biggest financial asset is your ability to earn a paycheck With all the attention and occasional hand-wringing over the retirement savings gap facing millions of Americans, one observation often goes unmentioned: your biggest financial asset, or at least one of your biggest assets, is your ability to earn a living. That is not to [...]
IRS UPDATE IRS Tips on Correcting Plan Mistakes The IRS has compiled a list of common plan mistakes it encounters during examinations and in its voluntary correction programs. It may be helpful for plan sponsors to be familiar with these common mistakes and IRS tips for self-correction to avoid making similar mistakes. On the IRS [...]
Investment Menu: Best Practices Due to regulatory changes, market instability and large numbers of investment options, plan sponsors have been devoting more attention to their plans’ investment menus. A recent commentary from Vanguard identifies five best practices to assist plan sponsors in evaluating their menus while effectively communicating their plans to participants. To develop a [...]
Positive thinking is an important part of visualizing your financial future. As much as we recognize the need to save for retirement, many small obstacles tend to get in the way of taking action. It turns out the decisions we make about financial matters, including putting off saving and investing for retirement, are deeply rooted [...]
Sponsors of 401(k) plans have been permitted to amend their plans to accept Roth (after-tax) contributions since 2006. Plan participants can benefit from having their Roth contributions grow with tax-free earnings, and their contributions can be distributed to them at retirement with no future income tax liability. Unlike a Roth IRA, participation has no income [...]
In an endeavor as critical as managing your investments, it is prudent to handle some situations with the help of a competent professional advisor. Many individual investors simply do not have the time, patience, or persistence to deal effectively with their investments over the long term. Many investors have the motivation to put in the [...]
DOL UPDATE New Participant Fee Disclosure Timing Relief Under the DOL’s fee transparency regulations, plan administrators must provide a disclosure of plan and investment information, including an investment comparative chart, to eligible employees and beneficiaries once every 12 months. The original disclosures were due by August 30, 2012, and each annual disclosure thereafter would be [...]
More than 75% of those contributing to an employer-sponsored retirement savings plan receive matching contributions, and more than three-fourths of those participants contribute enough to receive the full match, according to TIAA-CREF’s Perfect Match Survey. But, only 72% of women and 64% of workers earning less than $35,000 annually receive the entire match. Many people [...]
Being part of the college planning process can be very educational for children, as it presents them with valuable financial lessons for the future. Children can earn money, learn about sources of financial aid, research potential colleges, and take other steps that may relieve their parents of some of the responsibility of college planning and [...]
