If you lose a job, switch employers, or step into retirement, you might consider rolling your retirement plan savings into an IRA. But this isn’t your only option; it could make more sense to keep the money in your previous employer’s plan or move it to your new employer’s plan (if allowed by the plan). […]
Retirement
Tips for Targeting Your Retirement Savings Goal
Tips for Targeting Your Retirement Savings Goal What if you’re saving as much as you can, but still feel that your retirement savings goal is out of reach? As with many of life’s toughest challenges, it may help to focus less on the big picture and more on the details. Regularly review your assumptions Whether […]
What is a rollover IRA, and do I need one?
Generally, the term “rollover IRA” refers to an IRA that you establish to receive funds from an employer retirement plan like a 401(k). A rollover IRA is also sometimes referred to as a “conduit IRA.” When you roll funds over from an employer plan to an IRA, your financial institution may suggest that you use […]
Setting Up a SIMPLE IRA Plan: It’s Simple!
You can also set up a 401(k) plan as a SIMPLE plan. However, there’s little advantage in doing so, because you’ll have the same lower contribution limits as a SIMPLE IRA plan while giving up the ease of administration that makes SIMPLE plans attractive in the first place. *The 3% of pay match may be […]
What is an ERISA fiduciary?
The Employee Retirement Income Security Act (ERISA) was enacted in 1974 to protect employees who participate in retirement plans and certain other employee benefit plans. At the time, there were concerns that pension plan funds were being mismanaged, causing participants to lose benefits they had worked so hard to earn. ERISA protects the interests of […]
Are You Ready to Retire?
Here are some questions to ask yourself when deciding whether or not you are ready to retire. Is your nest egg adequate? It may be obvious, but the earlier you retire, the less time you’ll have to save, and the more years you’ll be living off your retirement savings. The average American can expect to […]
Converting Retirement Savings to Retirement Income
Regardless of which path you choose with your retirement accounts, keep in mind that generally, you’ll be required to begin taking minimum distributions from employer-sponsored plans and traditional IRAs in the year you reach age 70½; you can delay your first distribution as late as April 1 of the following year. Taxable distributions from traditional […]
What’s the Difference Between a Direct and Indirect Rollover?
If you’re eligible to receive a taxable distribution from an employer-sponsored retirement plan [like a 401(k)], you can avoid current taxation by instructing your employer to roll the distribution directly over to another employer plan or IRA. With a direct rollover, you never actually receive the funds. You can also avoid current taxation by actually […]
Can the IRS Waive the 60-Day IRA Rollover Deadline?
If you take a distribution from your IRA intending to make a 60-day rollover, but for some reason, the funds don’t get to the new IRA trustee in time, the tax impact can be significant. In general, the rollover is invalid, the distribution becomes a taxable event, and you’re treated as having made a regular, […]
Tax Tips for the Self-Employed
Self-employed individuals make up 10.1% of the total U.S. workforce. Source: U.S. Bureau of Labor Statistics, March 2016 Being self-employed has many advantages — the opportunity to be your own boss and come and go as you please, for example. However, it also comes with unique challenges, especially when it comes to how to handle […]
