Rolling over a 401k into a Simplified Employee Pension (SEP) IRA is permissible, but there are certain conditions and considerations to keep in mind. The rollover must be from a traditional 401k to a SEP IRA, and the contributions to the SEP IRA are subject to annual limits. Additionally, there may be tax implications associated … Read more
Rolling over a 401(k) to a Roth IRA can provide tax-free growth potential. However, the process involves converting pre-tax 401(k) contributions to after-tax Roth IRA contributions, meaning you’ll pay income tax on the rolled-over amount. This may be beneficial if you expect to be in a lower tax bracket in the future when withdrawing funds. … Read more
When considering whether to move your 401k to a stable fund, it’s important to assess your investment goals, risk tolerance, and time horizon. If you are nearing retirement or want to safeguard your funds during economic uncertainty, a stable fund may be a suitable option. These funds typically invest in low-risk investments such as bonds … Read more
In your 20s, maximizing contributions to your 401(k) plan can set you up for significant financial growth down the road. Aim to contribute as much as possible, ideally between 10% to 15% of your pre-tax income. By doing so, you’ll take advantage of compound interest, which allows your savings to grow exponentially over time. If … Read more
Contributions to a 401(k) plan can be either pre-tax or post-tax. Pre-tax contributions are deducted from your paycheck before taxes are taken out, reducing your taxable income. Post-tax contributions are made with after-tax dollars, so they do not reduce your taxable income. Whether or not your 401(k) contributions are tax deductible depends on the type … Read more
Emptying your 401k before a divorce can have serious financial consequences. While it may seem like a quick way to access cash, it’s important to understand the potential risks. Withdrawing funds from your 401k early may result in hefty tax penalties and fees, reducing the amount of money you actually receive. Additionally, you may lose … Read more
Guideline is a 401(k) provider that offers a variety of features and benefits to its customers. One of the standout features of Guideline is its low fees. The company charges a flat annual fee of $30, which is significantly lower than the fees charged by many other 401(k) providers. Guideline also offers a user-friendly online … Read more
Switching your 401(k) to a new employer-sponsored plan with Fidelity is a simple process. Initiate the transfer by completing a transfer of assets form with both your current and new plan providers. Fidelity will handle the rest, guiding you through the steps to ensure a smooth transition of your retirement funds. It’s important to review … Read more
Paying off a 401(k) loan early with Fidelity is typically beneficial because you can save money on interest charges and reduce the impact on your retirement savings. To do so, you’ll need to: gather necessary information like your loan balance and payment details; contact Fidelity’s customer service to confirm the process; make additional payments beyond … Read more
You may be able to use your 401(k) to buy a house, but there are specific rules and limitations to keep in mind. You can borrow up to 50% of your vested account balance, or $50,000, whichever is less. The loan must be repaid within five years, and you must continue to make regular contributions … Read more