What is a 401(k)?
A 401(k) is a retirement savings plan sponsored by your employer. It lets you save and invest a portion of your paycheck before taxes are taken out.
For our complete guide on 401(k), see What is a 401(k) Plan and How Does It Work.
According to the IRS, the combined total contribution you can make to all of your 401(k) plans (including traditional 401(k), Roth 401(k), and individual 401(k) plans) in 2020 increases by $500 to $19,500. The catch-up contribution limit also increases from $6,000 to $6,500. However, you may be limited by what your employer allows you to … Read more
Homeownership is the ultimate American Dream. If you’re going to buy a home, though, you will likely need a down payment — especially if you want the best mortgage rate. For those trying to make a 10% or 20% down payment on a home, coming up with tens of thousands of dollars can be a … Read more
The easiest way to get started saving for retirement is to use your employer’s 401(k) plan. A 401(k) is a retirement savings plan sponsored by your employer. It lets you save and invest a portion of your paycheck before income taxes are taken out. The specific rules and investment options vary from plan to plan, … Read more
Are you thinking about borrowing money from your 401(k) plan? Whether it is for the down payment for your home purchase, for debt payment, to fund your new business venture, or to cover your cash shortfall; borrowing money from your 401(k) is a decision that you need to consider carefully. Table of Content How to … Read more
When you leave your job, whether you quit or you get laid off, there are many things you need to do, including deciding what to do with your 401(k). You have the choice of leaving the 401(k) funds in your current plan, cashing out of the plan, or rolling the funds over into another qualified … Read more
When you leave your job, you have four options for the money in your 401(k) plan. You can cash out the money, keep it in your current plan, or move it to another qualified retirement account (i.e., your new employer’s 401(k) plan, a Traditional IRA, or a Roth IRA). The action of moving money out … Read more
When it comes to saving for retirement, it’s important to understand your options. Figuring out which type of account to use is a big deal. For some workers, understanding the difference between a 401(k) and a 403(b) is important. Photo by PT Money. What is a 403(b), and How Does it Differ from a 401(k)? … Read more
Saving for retirement is one of the most important financial decisions you can make. Without retirement savings you may never be able to retire or if you are forced to retire, you find yourself completely dependent on the government for assistance. It is smarter to take control of your retirement savings now, while you have … Read more
You can find countless approaches to save for retirement. For example, you can open a Roth IRA with a financial planner, contribute to a 401k through your company, contribute to a self-employed retirement plan, make investments through a discount brokerage firm, or a combination of the preceding. Having various retirement plans to pick from provides … Read more