Taking Advantage of a Roth Contribution Option Can Give You Some Flexibility in Retirement According to Vanguard’s “How America Saves 2024,” 82% of employers offer a Roth 401(k) option in addition to a traditional, or regular, 401(k) option. However, just 17% of employees contribute to a Roth. If you have access to a Roth 401(k) [...]
Doing Some Tax Planning Now Can Pay Off Later in Retirement For many people, retirement is not a time to slow down and stop. It’s a time to explore the next great chapters of your life and build upon everything you’ve learned and experienced so far. Another thing that doesn’t slow down or stop [...]
Erick, can I contribute to my 401k AND a Roth IRA? Yes, tax payers can max out their contributions to both 401ks and Roth IRAs, assuming their income threshold is below the amount that would prohibit contributing to the Roth. Filing Status 2022 or 2023 Income range Maximum Annual Contribution Married filing jointly [...]
The Roth 401(k) incorporates features of both Roth IRAs and traditional 401(k) plans. This article looks at rules governing distributions and rollovers that are unique to Roth plans. The Roth 401(k) resembles the Roth IRA, in that contributions are made with after-tax dollars and qualified withdrawals can be made tax free. But, as the name [...]
More than 25 percent of all Americans have no savings to speak of, let alone a retirement nest egg. But for those without an employer plan, like a 401(k), that number is much, much larger. About 70 percent of so-called 1099 workers, including freelancers and contractors, said they have no long-term savings at all, according [...]
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) [...]
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 [...]
President’s 2016 Budget Proposal The president released his fiscal year 2016 budget proposal during first quarter. Unlike other retirement plan-related proposals introduced this year, the president’s budget proposal appears to combine retirement savings provisions with tax reform initiatives that would reduce the revenue impact of retirement savings. Retirement savings tax incentives are the second biggest [...]
