Key Takeaways: The Social Security retirement trust fund and Medicare Hospital Insurance trust fund will both be depleted within the next decade if no action is taken. Joe Biden proposed increasing taxes on high earners to shore up the two trust funds. Donald Trump said he supports the programs but has provided no details about…
Key Takeaways: Global life expectancy is increasing, leading some countries to raise their retirement ages. The retirement age varies significantly around the world, with some countries, such as Iceland, having a retirement age of 67 and others, such as Saudi Arabia, of 47. The shift in the U.S. from company pensions to individual retirement accounts…
Key Takeaways You may be able to take out a penalty-free loan from your 401(k) to buy a home, but you’ll still owe taxes on the amount you withdraw. Withdrawals over the limit or that don’t qualify for penalty-free withdrawal are still subject to a 10% penalty for borrowers under 59 ½. The amount you’ll…
Key Takeaways Workers age 50 and older can take advantage of 401(k) catch-up contributions, allowing them to contribute up to $7,500 more than younger participants. In 2024, you can put in up to $30,500 if you meet the requirements. You can receive tax benefits through catch-up contributions, especially if you set aside the maximum amount,…
Key Takeaways Take account of your savings, investments and retirement accounts to make sure you have enough funds to retire. Lay out the monthly costs you’ll have to cover and consider how your income will pay for those. Look into Social Security benefits so you can decide when to start the application process. Get rid…
Key Takeaways: The SECURE 2.0 Act changed the age for starting required minimum distributions (RMDs) to 73 in 2023, and it will increase to 75 in 2033. Depending on your income level, premium costs could increase once withdrawals begin, and your taxes could be higher. Missing an RMD could lead to a penalty, though the…
Key takeaways You may qualify for the saver’s credit if you have a low to moderate income and contributed to a 401(k) or IRA in the past year. The saver’s credit reduces your overall tax bill by a certain amount, depending on your level of income and savings. There are eligibility requirements for the saver’s…
Key Takeaways: A 60/40 investment portfolio is usually comprised of 60% stocks and 40% bonds. A 60/40 retirement portfolio split should only be deployed after a thorough assessment of the retiree’s unique financial needs. A candid discussion of a 60/40 retirement savings strategy should take place between the retiree and a trusted financial advisor. The…
Key Takeaways An after-tax 401(k) contribution allows you to deposit more than the $23,000 pretax limit for 2024 ($30,500 for those age 50 or older). The total 401(k) contribution limit that includes employer and employee contributions and after-tax 401(k) contributions is $69,000 in 2024 ($76,500 for those age 50 or older). Contributions that are above…
Saving for retirement in a Roth 401(k) will give you a tax-free source of retirement income. You also won’t need to pay income tax on the investment growth within the account. Here’s why you should consider using a Roth 401(k) to save for retirement: You can avoid paying income tax on investment gains. Withdrawals in…
