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Why You Shouldn’t Leave Your 401(k) With A Past Employer
Consider the following: you leave your employer and opt to leave your 401(k) as is as you transition into your new role. Then, let’s say your employer updates their business name and transitions to a new investment provider over the course of a few years. As time goes on, let’s say you move to a new home.
This was a reality for one man, who then struggled for 10 subsequent years to gain enough information to get the plan transferred only for the new investment provider to say the check had to be sent to an old address. This struggle could have been avoided if he opted to move his 401(k) to an IRA or his new employer’s retirement plan. Here is why you shouldn’t leave your 401(k) with a past employer.
Who Is Affected By The Social Security Fairness Act And What To Do Next
The Congressional Research Service found that by the end of 2023, more than 2 million Social Security beneficiaries had their retirement incomes reduced because of two programs: the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The Social Security Fairness Act, which was signed into law on Sunday, eliminates this benefit reduction.
Who is affected by this change and what comes next?
Understanding Types Of 401(k) Notices And When To Take Action
If you are employed at a company offering a 401(k), you’ve probably received a fair number of notices regarding your plan. This happens particularly often toward the end of the year. If you’re unfamiliar with the ins and outs of 401(k)s, you may not know which notices should move you to act and which are purely informational. This article discuses how to understand the types of 401(k) notices and when to act.
How To Choose Between Different Pension Buyout Options
Many employers used to offer pension plans to their employees. Pensions are financial vehicles designed to replace a portion of the employee’s wages during their retirement years, providing them a reliable income for the rest of their life.
Nowadays, pensions have fallen out of favor among many employers due to the maintenance costs, increased longevity and compliance obligations. Because of this, many employers are seeking to buy people out of their pension benefits, either with a lump sum or different lifetime income benefits.
If you’re in a position where an employer is offering to buy you out of your pension, it’s critical to learn how to assess different options.
How High Earners Can Save Money After Maxing Employer Retirement Plans
Contribution limits on 401(k) and other retirement plans can be frustrating for people earning more than $250,000 per year who want to utilize tax-advantaged investments for their long-term financial goals.
As an employee at a company, you don’t have as much control over retirement vehicles as a business owner does. Your plan may limit you to $23,000 per year if you’re younger than age 50 in 2024. Here is where you can save money once you’ve maxed out your employer-sponsored retirement plan, along with some of the tax implications of each option.
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