These retirement bills let older workers put even more into their 401(k)s | CNN

May 5, 2022May 3, 2022 ~ knjohn ~ Leave a comment

If a popular piece of retirement legislation makes it to President Biden’s desk this year, it would give older 401(k) participants the opportunity to contribute more to their nest egg and possibly bolster their tax-free savings.

Currently, anyone 50 or older may contribute an additional $6,500 on top of the annual $20,500 federal 401(k) contribution limit, for a total of $27,000 a year.

But under the Secure Act 2.0, which the House passed in March, the cap on catch-up contributions would increase to $10,000 for people ages 62, 63 and 64. So they’d be allowed to save a total of $30,500 in their 401(k)s.

Pros and Cons of Borrowing From Your 401(k) | businessnewsdaily.com

February 15, 2021February 14, 2021 ~ knjohn ~ Leave a comment

If you’re thinking about borrowing from your 401(k), consider the pros and cons first.

Borrowing against your 401(k) is generally frowned upon, but in some circumstances, it can make sense.
When you take out a loan from your 401(k), you don’t have to fill out a lengthy application, the interest rate is typically lower than it is for a personal loan or business loan, and there aren’t any penalties.
A big downside of borrowing against your 401(k) is that it harms your retirement saving potential. During the repayment period, you are barred from contributing to your 401(k).
This article is for business owners and professionals who are thinking about borrowing money from their 401(k) retirement fund.

4 New Year’s resolutions for investors | Money Cnn

January 2, 2015 ~ knjohn ~ Leave a comment

Millions of Americans make resolutions to hit the gym, eat more salad and smile frequently. But don’t forget to pay as much attention to your money.

Keeping tabs on your investment portfolio can be just as important when it comes time for retirement.

Here’s CNNMoney’s suggested list of New Year’s resolutions for investors:

1. Find your password and log on! Many investors who have their portfolios in cruise-control mode. While you don’t need to trade daily, it’s important to at least do an annual checkup on your accounts. Log in or call your 401(k) or brokerage account provider and see whether you should make any changes.

At your annual physical, you get your blood pressure checked. The equivalent to that in investing is looking at your asset allocation — how much you have in stocks versus bonds versus cash and commodities.

Is your asset mix still appropriate based on your age and risk tolerance? It could be time to make a change.

You can stash up to $18,000 in your 401k next year | Money.Cnn.com

October 24, 2014 ~ knjohn ~ Leave a comment

Super savers and rich people will be able to put even more money in their 401ks next year. Starting in 2015, contribution limits for the tax-deferred retirement accounts will increase by $500 to $18,000, the Internal Revenue Service announced Thursday.

Meanwhile, the “catch-up” amount that workers age 50 and over can contribute to their plans will rise to $6,000 from $5,500, for a total of $24,000 next year.Of course, not many workers can afford to save those maximum amounts. In 2013, 12% of Vanguard’s more than 3 million 401k participants contributed the max allowed not including any match from their employer, according to the company’s annual How America Saves report.

A 401k Conundrum: Can You Make Cash Pile Last for Life? | Bloomberg

October 8, 2014 ~ knjohn ~ Leave a comment

Even if you’ve socked plenty of money away in your 401k plan and invested it carefully, some of your toughest decisions lie ahead. And don’t expect much help or clarity from the government or your employer. Strategies for drawing down lump-sum accounts in retirement — more important than ever in the 401k era — have received little attention from policy makers. For retirees, choices about how to spend a life’s worth of savings are fraught with tricky calculations about financial risk, taxes and death.

Should Your Small Business Offer a 401(k) Plan? | Businessnewsdaily.com

May 6, 2014 ~ knjohn ~ Leave a comment

If your business has only a few employees, you may think you’re too small to offer a 401(k) plan. But even entrepreneurs have to retire someday, and there’s no time like the present to start planning for the future.

“Most small businesses don’t offer 401(k) plans, but it’s good for the nation as a whole to start saving for retirement,” said Paul Davidson, director of product management at payroll processing firm Paychex. “It’s not just about the [individual] benefits; there’s a social good that comes from establishing more 401(k) plans.”

Saving Too Much For Retirement? Is It Really Possible? | Generation X Finance

November 14, 2013 ~ knjohn ~ Leave a comment

Conventional wisdom tells us it’s impossible to be saving too much for retirement, but is this really true? We’ve been hearing about the need to save more for retirement, and for good reason. Ask many of the Baby Boomers who are getting ready to retire and you’ll find that many of them have come to the realization that they don’t have as much saved up as they had hoped, or that they may need to even put off retirement for a few years.

So, is it possible to save too much for retirement? Of course it is, but it’s far from the norm. The real issue comes from the sacrifices you need to make today in order to plan and save for a retirement that may be decades away. There is a balance in life.

Congress takes aim at 401(k)s | Bankrate.com

June 22, 2011 ~ CBPS ~ Leave a comment

The Congressional Joint Committee on Taxation and the Treasury Department’s Office of Tax Analysis conclude that these retirement planning programs will cost the federal government about $600 billion in lost revenue over the next five years.

Read Article.