401(k) Plans and Rollovers
Found 20 Articles.
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Arranging Your Finances to Make an IRA Conversion Less Costly
Last month, we addressed the different factors to consider when evaluating whether it makes sense to convert a traditional IRA to a Roth IRA. While a Roth IRA has many benefits, there is a cost to the conversion. You have to include the converted amount in gross income as though it were distributed to you […]
More Legal Rights for 401(k) Members
Trial attorneys have been suing 401(k) plans in recent years for not giving participants good deals. The Supreme Court handed another defeat to the 401(k) plans, finding that the statute of limitations is renewed each time the plan’s board reviews investment choices. And a plan can be sued for a high-cost or high-risk investment option […]
Savings Rates and 401(k)s
Over the years economists discovered that people would save more for retirement if 401(k) plans set a default initial savings rate instead of providing there would be no savings rate unless the employee selected one. There’s a lot of inertia in people. Many people will leave their contribution rate at the default, because they don’t […]
Enhancing Your 401(k)
Most people don’t make the most of their 401(k) plans. They rely too much on the advice of the plan custodian or the default rules set by the plan. They also don’t fully understand the investments and other options offered by the plan. Improve your 401(k) account to start the year. Read this piece with […]
Evaluating Your 401(k) Plan
Most people don’t know a lot about their 401(k) plans, which is odd, because that is the main retirement savings vehicle for most Americans. SmartMoney lists the key factors you need to review when evaluating your 401(k) plan. I don’t usually like SmartMoney’s “10 Things…” series, but this one makes a few good points among […]
What’s Wrong with 401(k) Plans
The 401(k) revolution isn’t increasing retirement security for most employees. I don’t know many people who dispute that. But the real question is: Why aren’t 401(k) plans working. Of course, two reasons are employee behavior. They don’t save enough, and they don’t invest. But another problem, according to this post, is that most 401(k) plans […]
IRA, 401(k) Sponsors Can Offer Investment Advice
The Department of Labor issued new regulations last week that allow fiduciaries of 401(k) plans and IRAs to offer investment advice under some circumstances. The law prohibits such advice, but the DOL carved out some exceptions. Fiduciaries may offer advice, beginning Dec. 27, if their compensation doesn’t depend on the investment recommendations or they use […]
Should You Choose a Regular 401 K or Roth 401 K
Many employees have a new retirement-saving option, and many more will have that option over the next year or two. Should you take this option? In addition to regular 401(k) plans, employers now can offer Roth 401(k)s. The rules are very simple. There is no tax break for deferring salary into the Roth 401(k); it […]
